Although the TSX 60 index is buying and selling close to all-time highs, a number of Canadian shares throughout a number of sectors are priced at a reduction in October 2025. On this article, I’ve recognized two such discounted shares that Bay Road is overlooking proper now.

Is that this Canadian inventory undervalued?

Valued at a market cap of $148 million, Sylogist (TSX:SYZ) gives mission-critical software-as-a-service options to public sector clients in Canada, the USA, the UK, and internationally.

Within the second quarter (Q2) of 2025, Sylogist grew its bookings by 33% yr over yr, the second-highest bookings efficiency in firm historical past. The software program agency has efficiently reworked right into a software-as-a-service (SaaS) pushed enterprise, with recurring income now representing 70% of complete income, up from 62% a yr in the past. Its annual recurring income (ARR) stood at $43.8 million, whereas SaaS ARR grew to $31.7 million, up 12.5% yr over yr.

The quarter led to June noticed some short-term headwinds from prolonged resolution cycles within the schooling sector and implementation timing shifts within the municipal market. Administration views these delays as short-term and expects deferred ARR to materialize within the coming quarters. Notably, companions are already ramping up staffing to speed up implementations.

SaaS subscription income climbed 13% whilst exterior funding pressures impacted a small group of legacy clients. It reported a web income retention charge of 107% in Q2, which signifies current clients elevated spending by 7% over the past 12 months.

Analysts monitoring the TSX tech inventory forecast income to extend from $64.4 million in 2025 to $124.4 million in 2029. On this interval, its free money move is forecast to enhance from $4.53 million to $32.3 million.

If the tech inventory is priced at 10 occasions ahead FCF, it ought to greater than double inside the subsequent 4 years.

Is that this prime TSX inventory an excellent purchase?

Valued at a market cap of $10.5 billion, TFI Worldwide (TSX:TFII) gives transportation and logistics companies in the USA, Mexico, and Canada.

TFI Worldwide showcased spectacular margin enlargement throughout enterprise segments in Q2 regardless of ongoing headwinds. The transportation large reported a free money move of $182 million in Q2, a rise of 20% yr over yr.

Working revenue was $170 million, yielding a 9.5% margin, up from 8.5% final yr. It achieved sequential margin beneficial properties throughout its portfolio, with less-than-truckload bettering 360 foundation factors from Q1 and Truckload advancing 250 foundation factors. These enhancements mirror aggressive value management measures and effectivity beneficial properties at acquired operations.

Administration deployed capital strategically through the quarter, repurchasing $85 million in shares and paying $39 million in dividends. The corporate additionally strengthened its monetary place via a personal placement bond providing at 4.8% fastened charges, changing debt at 6.1% whereas extending maturities and higher aligning the forex combine with money flows.

Analysts monitoring the TSX inventory forecast income to extend from $8.12 billion in 2025 to $10.22 billion in 2029. On this interval, its adjusted earnings are forecast to increase from $4.48 per share to $10.51 per share.

At this time, TFII inventory is buying and selling at 17.7 occasions ahead earnings, above its 10-year common of 15 occasions. If TFII can preserve its present a number of, it ought to surge by 50% over the following 4 years.