Three stocks have fallen sharply from recent highs that Canadian investors should watch today

After delivering solid returns in recent months, Canadian stock markets are witnessing volatility this month S&P/TSX composite index decreased by 1.2%. Concerns about higher valuations combined with steep upside and an AI (artificial intelligence) bubble appear to have dampened investor sentiment and dragged equity markets lower. Amid the recent pullback, the index is down 2.4% from its recent highs.

However, the following three high-growth stocks have seen sharp declines, losing more than 15% from their recent highs. Let’s assess their recent performance, growth prospects and valuations to determine the buying opportunities for the following three stocks.

Shopify

Shopify (TSX:SHOP), which provides commercial solutions to businesses around the world, has come under pressure this month, falling 17.3% from its 52-week high. In addition to broader weakness in the technology sector, a decline in second-quarter earnings has weighed on the stock. However, demand for Shopify’s products and services continues to increase as more companies adopt omnichannel sales models.

The company is also investing heavily in innovative AI-powered tools to meet the evolving needs of its customers and improve the overall user experience. At the same time, Shopify is expanding into new international markets, steadily growing its merchant base. The strategic partnerships with leading logistics providers have further strengthened the shipping and fulfillment ecosystem, reducing delivery delays and providing sellers with more flexible and reliable fulfillment options.

Additionally, Shopify’s disciplined approach to managing its workforce, supported by greater AI integration, improves productivity and supports the path to improved profitability. Given these robust growth engines, I think long-term investors with a time horizon of more than three years can consider accumulating the stock to capture potential upside.

Celestica

Second on my list is Celestica (TSX:CLS), which is down 22.4% from its 52-week high. After attracting strong investor interest earlier this year, the electronics manufacturing services company has faced pressure in recent weeks due to broad weakness in the technology sector and growing concerns about a possible AI bubble.

However, hyperscalers continue to invest aggressively in large-scale data center infrastructure to support the accelerated adoption of AI, significantly increasing the demand for computing power. This trend has immediately increased the need for Celestica’s products and services. To capitalize on this momentum, the company is developing innovative offerings, including advanced switches and storage devices, that can further strengthen its competitive position.

After strong performance in the third quarter, Celestica has raised its 2025 outlook and released an encouraging forecast for 2026. The updated 2025 guidance calls for revenue and adjusted earnings per share (EPS) growth of 26.4% and 52.1%, respectively, along with free cash flow of $425 million. For 2026, the company expects revenue and adjusted earnings per share to increase 65.8% and 11.3%, respectively, from 2024 levels.

Given these robust growth prospects, and with the stock trading at just 2.2x expected revenue over the next four quarters, I believe Celestica remains an attractive long-term buy despite the short-term volatility.

5N Plus

My final choice is 5N Plus (TSX:VNP), which is currently trading about 16% below its recent highs. The stock has retreated in recent days as concerns about this year’s sharp rally and broader fears of an AI bubble have weighed on investor sentiment.

Despite this volatility, demand for specialty semiconductors remains robust, supported by continued growth in the terrestrial renewable energy and space-based solar energy markets. With its global presence, strong sourcing capabilities and high-quality product portfolio, 5N Plus is well positioned to further expand its market share and leverage the benefits of these growing sectors.

Moreover, the company is trading at a reasonable price-to-earnings ratio of 21.9 for the next twelve months. Given its solid financial performance, promising growth prospects, and attractive valuation, I think investors can use the recent pullback as an opportunity to accumulate the stock for strong long-term returns.