After delivering stable returns over the previous couple of months, the Canadian fairness markets are witnessing volatility this month, with the S&P/TSX Composite Index falling 1.2%. Issues over greater valuations amid steep will increase and an AI (synthetic intelligence) bubble seem to have weighed on investor sentiment, dragging down fairness markets. Amid the latest pullback, the index has fallen 2.4% from its latest highs.
Nevertheless, the next three high-growth shares have seen sharp cuts, dropping over 15% from their latest highs. Let’s assess their latest performances, progress prospects, and valuations to find out shopping for alternatives within the following three shares.
Shopify
Shopify (TSX:SHOP), which supplies commerce options to companies globally, has come beneath strain this month, declining 17.3% from its 52-week excessive. Along with the broader weak point within the know-how sector, a drop in its second-quarter earnings has weighed on the inventory. Nevertheless, demand for Shopify’s services and products continues to strengthen as extra companies undertake omnichannel promoting fashions.
The corporate can be investing closely in progressive AI-powered instruments to fulfill its prospects’ evolving wants and improve general person expertise. On the similar time, Shopify is increasing into new worldwide markets, steadily rising its service provider base. Its strategic partnerships with main logistics suppliers have additional strengthened its transport and success ecosystem, serving to cut back supply delays and providing retailers extra versatile and dependable success choices.
Moreover, Shopify’s disciplined strategy to managing headcount, supported by better integration of AI, is bettering productiveness and supporting its path to enhanced profitability. Given these strong progress drivers, I imagine long-term buyers with a time horizon of over three years can think about accumulating the inventory to seize potential upside.
Celestica
Second on my checklist is Celestica (TSX:CLS), which has declined 22.4% from its 52-week excessive. After attracting sturdy investor curiosity earlier this yr, the electronics manufacturing providers firm has confronted strain in latest weeks amid broad weak point within the know-how sector and rising considerations a couple of potential AI bubble.
Nevertheless, hyperscalers proceed to take a position aggressively in large-scale knowledge centre infrastructure to help accelerating AI adoption, driving substantial demand for computing energy. This development has instantly boosted the necessity for Celestica’s services and products. To capitalize on this momentum, the corporate is growing progressive choices, together with superior switches and storage gadgets, which might additional strengthen its aggressive place.
Following a powerful third-quarter efficiency, Celestica raised its 2025 outlook and issued an encouraging forecast for 2026. The up to date 2025 steering requires income and adjusted earnings per share (EPS) progress of 26.4% and 52.1%, respectively, together with free money movement of $425 million. For 2026, the corporate expects income and adjusted EPS to extend by 65.8% and 11.3%, respectively, from 2024 ranges.
Given these strong progress prospects, and with the inventory buying and selling at simply 2.2 instances its projected gross sales over the subsequent 4 quarters, I imagine Celestica stays a pretty long-term purchase regardless of near-term volatility.
5N Plus
My remaining choose is 5N Plus (TSX:VNP), which is presently buying and selling about 16% beneath its latest highs. The inventory has pulled again in the previous couple of days as considerations over its sharp year-to-date rally and broader fears of an AI bubble have weighed on investor sentiment.
Regardless of this volatility, demand for specialty semiconductors stays strong, supported by sustained progress in terrestrial renewable vitality and space-based solar energy markets. With its world footprint, sturdy sourcing capabilities, and high-quality product portfolio, 5N Plus is well-positioned to proceed increasing its market share and seize the advantages of those rising sectors.
Furthermore, the corporate trades at an affordable next-12-month price-to-earnings a number of of 21.9. Given its stable monetary efficiency, promising progress outlook, and enticing valuation, I imagine buyers can use the latest pullback as a possibility to build up the inventory for sturdy long-term returns.
