2025 is nearly below wraps. It’s time to start out fascinated about the way you wish to spend money on shares for 2026. I’d label 2025 as a bifurcated market. The S&P/TSX Composite Index is up 23% this yr. At 30,316 factors, the Index is buying and selling simply off all-time highs.
But, until you might be obese in banking, mining, or AI-related shares, your portfolio could have underperformed the Index by a superb margin. Components of the market which have outperformed previously (like software program, insurance coverage, and industrials) are down double digits.
It presents alternatives should you don’t thoughts being contrarian. Listed here are three shares which might be overwhelmed down now, however I‘d purchase them for 2026 and lengthy past.
A prime Canadian compounder buying and selling down in 2025
Constellation Software program (TSX:CSU) is down 26% to date in 2025. That is certainly one of its worst drawdowns ever. Even after the pullback, it’s nonetheless one of many best-performing shares in Canada over the previous 15 years.
The inventory is down on fears about AI threats, the retirement of its long-standing CEO, and the potential for capital deployment to decelerate. Constellation makes its bread and butter from buying small, area of interest, specialised software program suppliers.
Whereas Constellation’s year-to-date earnings outcomes have been good, the market has not been glad. But, with the inventory down, its valuation is beginning to look fairly engaging. The lower cost gives a margin of error for longer-term traders.
Whereas AI is a risk, it is usually a chance. Constellation can use it as a device to reinforce margins and enhance software program providers for patrons. You should be contrarian, but when this inventory have been to drag again any additional, it will be an incredible discount.
An actual property inventory for long-term returns
Talking of compounders, Colliers Worldwide (TSX:CIGI) is fascinating. Its inventory is definitely up 10% this yr. Nonetheless, it’s down 5% because it launched earnings final week.
Colliers is finest identified for its international business actual property model. But, it’s changing into a considerable participant in funding administration and engineering. Because it integrates and consolidates these companies, it’s having some near-term margin impacts. This might final for a few quarters. The market didn’t actually like that.
If you happen to can look previous that, the corporate has delivered nice outcomes this yr. For the primary 9 months, revenues rose 19% to $3.95 billion, and adjusted earnings per share rose 23% to $4.24.
2026 is setting as much as be a robust yr the place its latest acquisitions ought to accrete sturdy earnings progress. The corporate nonetheless has ample room to amass extra companies. The corporate has returned high-teens common annual returns for greater than 20 years. It’s more likely to hold delivering the identical within the years forward.
A software program inventory with large alternatives in 2026
One other inventory I’d have an interest to purchase if it received any cheaper is VitalHub (TSX:VHI). Its inventory is down 6.5% this yr. The weak efficiency is a bit deceiving. For the primary 9 months of the yr, revenues are up 62% to $77.5 million and adjusted EBITDA is up 49% to $19.1 million.
VitalHub is gaining sturdy momentum as a vital healthcare software program supplier in Canada, the U.Okay., and Australia. Current bigger acquisitions are giving it geographic scale and new instruments to assist its clients throughout.
This inventory has a robust, cash-rich steadiness sheet with almost $120 million. It’s in a robust place to aggressively deploy that money for progress in 2026 and past.
