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3 Canadian Value Stocks With Up To 83% Fair Value Upside

Simply Wall St · 1d ago

AI heavyweights are spending hundreds of billions of dollars on data centres and chips, and some of the most popular US tech stocks have been punished as investors question whether that cash will come back quickly. Market attention has swung toward cheaper, cash disciplined businesses. For Canadian tech shares that already look underpriced, that shift can matter. This article highlights three such stocks flagged by our undervalued technology screen.

The three stocks covered next are just a small sample. The full undervalued tech screen also surfaced 14 more Canadian and US listed companies with equally compelling narratives that are not unpacked here.

If you want to identify your own highest conviction ideas among undervalued software, hardware, equipment, and semiconductor plays, head straight to the Undervalued Tech screener to filter and analyze the full list on your terms.

Lightspeed Commerce (TSX:LSPD)

Lightspeed Commerce gives retailers, restaurants, and other merchants a single cloud platform for point of sale, back-office tools, and integrated payments. This fits directly with the Undervalued Tech theme through its software and payments driven recurring revenue model. It generated about US$1.24b from software and programming and currently has a market value of roughly CA$2.0b.

For the Undervalued Tech screen, Lightspeed Commerce is interesting because the same platform that runs tills, menus, and inventory also plugs directly into higher margin software and payments streams that can compound over time.

"Although Lightspeed Commerce is targeting higher payments penetration with transaction revenue and Lightspeed Capital, the recent hardware gross margin turning negative due to heavy discounting and freight costs risks offsetting those gains."

One question for investors is what happens if a relatively quiet cost pressure continues to weigh on margins just as expectations for this commerce platform climb higher.

If that margin squeeze keeps bubbling under the surface, read the full narrative for Lightspeed Commerce to see whether Lightspeed Commerce’s payments engine can still drive an accelerating story.

TSX:LSPD Revenue & Expenses Breakdown as at Oct 2026
TSX:LSPD Revenue & Expenses Breakdown as at Oct 2026

Celestica (TSX:CLS)

Celestica builds hardware platforms and end to end manufacturing and supply chain services for equipment makers and cloud providers, including rack scale AI infrastructure that fits directly into the Undervalued Tech theme. The business generated about $3.4b from Advanced Technology Solutions and $14.8b from Connectivity & Cloud Solutions, and the stock is valued around CA$50.0b.

For investors seeking underappreciated AI infrastructure exposure, Celestica provides a way to access hyperscaler hardware programs without owning the headline chip stocks themselves.

"Accelerated demand for advanced networking and AI infrastructure by hyperscaler customers is now reflected in Celestica’s CCS outlook, with management guiding to approximately 85% CCS revenue growth in 2026 and expecting companywide revenue growth to accelerate further in 2027, which they believe can support higher operating leverage and earnings."

A key consideration is how one capital heavy decision can affect future cash generation and the durability of that growth narrative.

If that trade off between heavy AI build out and future profitability is what you care about, read the full narrative for Celestica to see whether Celestica’s momentum is being underappreciated.

TSX:CLS Earnings & Revenue Growth as at Oct 2026
TSX:CLS Earnings & Revenue Growth as at Oct 2026

CGI (TSX:GIB.A)

CGI is a global IT and business process services group that helps large organisations modernise legacy systems, move into cloud and manage hybrid infrastructure, which fits the Undervalued Tech theme. It generated about CA$3.0b from Western and Southern Europe and CA$2.5b from U.S. commercial and state clients, with additional multi billion revenue streams across Canada, U.S. federal work and the U.K. and Australia. The stock is valued at roughly CA$22.8b.

For investors focused on tech driven cost savings rather than splashy hardware, CGI offers a broad mix of modernization, cloud migration and FinOps style services that can quietly reshape how clients run core systems.

"The ongoing acceleration in digital transformation initiatives, particularly in cloud migration, AI-driven automation and data analytics, continues to boost client demand for CGI's managed services and proprietary IP across both public and private sectors, which is likely to support sustained revenue growth and a rising mix of recurring earnings. Rising global cybersecurity risks and heightened regulatory demands are translating to strong, durable demand for CGI's data protection and security-focused offerings, supporting a robust pipeline in government and financial services verticals and providing a multi year tailwind for bookings, backlog and cash flow."

One question for investors is what happens if a quiet shift in how clients structure these long term service contracts meaningfully changes the earnings power baked into today’s expectations.

When those contract terms start quietly reshaping earnings power, the full narrative for CGI shows how CGI’s backlog, margins and cash generation could be decoupling from headline expectations.

TSX:GIB.A Earnings & Revenue History as at Oct 2026
TSX:GIB.A Earnings & Revenue History as at Oct 2026

Seeking Alternatives Before The Crowd?

Fresh ideas get snapped up fast. Some stocks are already building quiet breakout momentum while they are still under the radar for now. Do your homework before prices start flying and consider your options carefully.