The TSX has had a surprisingly strong run in 2026, especially considering how much uncertainty investors have had to digest. From the U.S.-Iran war and Canada-U.S. trade tensions to lingering questions about the economy and interest rates, there has been no shortage of reasons for markets to stumble. Yet Canadian stocks have continued pushing higher. That makes finding genuine discounts a little harder — but certainly not impossible.
Even in a rising market, individual companies could sometimes fall out of favour while their underlying businesses continue moving in the right direction. Those are exactly the situations I love to wait for.
In this article, I’ll highlight two of the best TSX stocks and explain why their discounted share prices could offer attractive opportunities.
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OpenText stock
Let’s start with OpenText (TSX: OTEX), a discounted TSX stock that looks interesting after a steep pullback, especially as its cloud business and profitability continue to improve.
This Waterloo-based information management software firm helps organizations manage, secure, and use enterprise data through cloud, cybersecurity, analytics, and other software solutions. OTEX stock currently trades at $33.15 per share with a market cap of $8 billion. At this market price, it has a 4.7% annualized dividend yield.
OpenText shares are down 26% year-to-date and 27% over the last year. That weakness has pushed the stock about 40% below its 52-week high, creating a sizeable discount for investors willing to look beyond recent price performance.
More importantly, the company’s latest results showed encouraging business momentum. In the fourth quarter of its fiscal 2026 (ended in June), OpenText’s total revenue rose 2.9% year-over-year (YoY) to US$1.4 billion. Its cloud revenue climbed 6% to US$503 million, while enterprise cloud bookings jumped 24.1% to US$295 million.
Similarly, OpenText’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) surged more than 14% YoY, with its margin reaching 37.6%.
For the full fiscal year, the tech firm’s free cash flow grew 17.5% YoY to US$808 million. OpenText also returned a record US$677 million to shareholders through dividends and share repurchases. Its fiscal 2027 priorities include expanding sales capacity, strengthening its ecosystem partnerships, and increasing investment in its core portfolio around cloud, security, and artificial intelligence (AI).
Improving cloud bookings, solid cash generation, and a stock sitting far below its 52-week high make OpenText an attractive discounted TSX stock to consider right now.
TFI International stock
Another discounted TSX stock worth considering is TFI International (TSX: TFII), where a recent share-price pullback comes along with strong earnings growth across its businesses.
This Saint-Laurent-headquartered transportation and logistics firm operates Less-than-truckload, truckload, and logistics businesses across Canada, the United States, and Mexico. At the time of writing, TFII stock traded at $177.57 per share with a market cap of roughly $15 billion and a 1.5% annualized dividend yield.
Although TFI shares are up 25% year-to-date, they have fallen 18% over the past three months. That pullback has left TFII stock 24% below its 52-week high.
But this pullback doesn’t mean that its financials are weakening. In the second quarter, TFI’s total revenue rose 12% YoY to US$2.3 billion with the help of business acquisitions and improving market conditions. Its operating profit also surged 29% to US$220 million, driven mainly by higher revenue, better margins, and contributions from acquisitions.
At the same time, the transportation giant’s net profit jumped 39% YoY to US$136 million. Its Truckload segment was especially strong, with operating income surging 50%.
TFI’s second-quarter free cash flow climbed 11% YoY to US$202 million, supporting its ability to strengthen the balance sheet, invest in freight opportunities, and return excess capital to shareholders.
With profits improving across business segments and the shares still trading well below their 52-week high, TFI International looks like another attractive discounted TSX stock for long-term investors.
