2 High-Quality Stocks Poised for a Summer Rebound

When bargain hunting in the stock market, it’s tempting to go after the names that have fallen the furthest from their highs. A stock that’s down 50% might seem like a steal—but deep discounts don’t always signal a bottom. In fact, a stock can be halved more than once, which is why it’s crucial to focus on high-quality companies that you understand and can reasonably value, especially given their future growth potential.

Below are two such stocks—well-established, fundamentally strong businesses—that appear well-positioned for a continued recovery this summer. While they may not reclaim record highs immediately, they offer solid upside from current levels.

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Constellation Software (TSX:CSU)

Constellation Software is currently down over 15% from its all-time high, and 2025 has been a relatively weak year for the stock. It’s off around 1% year-to-date, trailing the broader tech sector, which has surged on AI enthusiasm. So, what’s holding CSU back?

The company’s recent earnings were underwhelming, particularly in the second quarter, leaving some investors disappointed. While this has triggered some selling, the pullback may be more of a buying opportunity than a red flag. Despite missing out on the AI-driven hype, Constellation remains a strong business with a consistent, acquisition-driven growth model.

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Though shares trade above $4,000 and may appear expensive to new investors, the recent dip could offer a more attractive entry point than buying above $5,000, where the stock previously traded. The company’s track record speaks for itself, and any meaningful acquisition—especially in AI—could quickly reignite investor interest.

In the short term, expectations have been tempered, which could set the stage for a positive surprise. Long-term investors looking for sustainable growth might find CSU an appealing opportunity while it’s trading below its peak.

Waste Connections (TSX:WCN)

Waste Connections has also fallen out of favour with investors lately. The stock has gained just 2% over the past year, significantly underperforming the broader market. However, the business fundamentals remain strong.

The company has continued to deliver solid results and demonstrate pricing power—after all, waste collection isn’t exactly negotiable. Its strategy of steady growth through acquisitions has helped build a wide and growing moat.

WCN is also investing in artificial intelligence to improve operational efficiency, which could translate to higher margins down the line. Despite broader economic headwinds, the company has maintained its full-year guidance—a strong vote of confidence in its resilience.

With a healthy balance sheet and the capacity to pursue more earnings-boosting acquisitions, Waste Connections looks well positioned to rebound from its recent pullback. For investors seeking dependable growth in a defensive sector, WCN offers an attractive long-term opportunity.

Bottom Line:

Constellation Software and Waste Connections may not be the flashiest names in tech or growth investing, but they represent quality, resilience, and long-term potential. Their recent dips provide investors with a chance to pick up great businesses at better prices—making them compelling candidates for a summer recovery.