As December swings into action, a wave of tax-loss selling is putting downward pressure on a group of solid Canadian equities — creating what some analysts call a rare buying opportunity before the year closes. Every year investors look to offset capital gains by disposing of underperforming stocks, and the resulting sell-off can create attractive entry points for bargain hunters.

This year, several companies trading on the TSX have fallen to prices well below their recent highs despite stable fundamentals. Among the standout names now considered “on sale”: a renewable energy firm, a major global asset manager, a leading software company, and key players in transportation, real estate services, and media — all with strong long-term outlooks and sector positioning. Because of price weakness driven more by tax-motivated selling than deteriorating business prospects, these names may offer a favorable risk-reward profile for investors willing to look ahead.

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With many retail and institutional investors liquidating underperforming holdings ahead of the holiday season, stocks trading near their 52-week lows may have more room to recover. This soft patch tends to ease by mid-to-late December — and historically, prices rebound once the forced selling subsides. For patient investors, this window can be ideal for picking up quality shares at a discount.

The broader context supports this trend: major Canadian sectors — including materials and financials — have delivered strong performance through 2025, meaning many investors have capital gains they’d like to offset before year–end. This creates an environment where losses may not reflect underlying value, but rather tax-driven selling. For disciplined investors, that separation between price and fundamentals can present strategic opportunities.

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That said, it’s important to approach this environment with discipline. If you buy during this “discount window,” keep a long-term perspective. Watch for any additional corporate developments, and ensure that each company still aligns with your portfolio goals — dividend yield, growth potential, or sector exposure. Ultimately, the most compelling buys may be those with a solid balance sheet, diversified operations, and a clear plan for 2026 and beyond.