Despite a broader market rally in 2024, many fundamentally strong TSX stocks struggled to keep pace, with sharp declines driven by temporary sector-specific challenges or macroeconomic uncertainties. However, long-term investors could utilize these tips as a golden opportunity to buy such amazing stocks at a bargain. This is because stocks with solid underlying fundamentals often stage a sharp rebound once market conditions improve or short-term pressures subside.

In this article, I'll highlight two TSX stocks with major rebound potential for 2025 and explain why they could deliver strong returns in the coming years.

Tilray stock

Shares of Tilray Brands (TSX:TLRY) dived by nearly 35% in 2024 to trade at $1.78 apiece with a market cap of $1.6 billion. With this, TLRY stock has seen over 80% value erosion over the last three years, making it look way too undervalued, especially if we consider the company's efforts to diversify its operations and improve profitability.

While the company is yet to release its November 2024 quarter earnings report (expected on January 9), Tilray's August quarter results reflected mixed performance due mainly to challenges in the Canadian adult-use cannabis market and broader industry headwinds. Despite challenges, however, the company showcased resilience by achieving a 13% YoY (year-over-year) increase in net revenue to US$200 million in the August quarter. Another top highlight from the last quarter was that Tilray's beverage alcohol segment revenue jumped by 132% with the help of new acquisitions and the successful rollout of hemp-derived alternative beverages in key U.S. markets.

Tilray's focus on diversifying beyond cannabis appears to be paying off, with its beverage and wellness divisions providing new revenue streams. Notably, international cannabis sales, particularly in Germany, grew by 50% following legislative changes, showcasing Tilray's potential for global expansion.

Besides these positive factors, if federal cannabis regulations in the United States are eased or legalization progresses, Tilray will definitely benefit from its strong position in the market, making it an attractive TSX stock for growth investors.

OpenText stock

OpenText (TSX:OTEX) saw 28% value erosion in 2024, currently trading at $39.62 per share with a market cap of $10.5 billion. If you don't know it already, this Waterloo-based software company mainly focuses on enterprise information management solutions, which help businesses manage and analyze large amounts of data.

However, OpenText has some strong tailwinds that could drive its recovery in 2025. In its recently reported quarter ended in September 2024, the Canadian software firm's total revenue fell 11% YoY to $1.3 billion. Nevertheless, it marked its 15th consecutive quarter of organic cloud revenue growth, which is a promising indicator of its ability to shift its focus towards more sustainable and high-margin revenue streams.

In addition, OpenText seems to be doubling down on innovation by focusing more on business artificial intelligence and cybersecurity solutions, which are likely to play an important role in the digital transformation of businesses in the future. Given that, I wouldn't be surprised if this TSX stock stages a rebound in 2025 as soon as market conditions stabilize and its growth initiatives start to deliver measurable results.