The TSX Index is coming in hot to close off the year, and there are reasons to believe the rally has staying power. Indeed, investors looking to put an extra $7,000 to work ahead of 2025 may wish to do so before valuations have a chance to climb even higher.

Undoubtedly, there's a lot of hype surrounding the high-tech generative artificial intelligence (gen AI) plays. And though the hype could begin to fade (quantum computing stocks may heat up instead), there are other names that haven't really been participating in the broad market rally. In this piece, we'll look at two of the value names that could prove fantastic catch-up trades through 2025 and 2026.

Great-West Lifeco

Great-West Lifeco (TSX:GWO) stock just got hit with a swift correction, providing dip-buyers with a potential entry point in the mid-$40 range. Undoubtedly, the dividend yield of 4.71% is incredibly attractive, as were the latest third-quarter numbers, which were driven higher by the impressive U.S. business.

After such a respectable quarter, Canadian investors looking for a higher-yielding bargain may wish to pursue the name sooner rather than later. For the most part, it's been a solid year for the underrated $42.8 billion financial firm. At the time of writing, shares of GWO go for 11.83 times trailing price to earnings (P/E), making it one of the most value-conscious names in the Canadian financial scene. And while the year's gains could be wiped out should the correction continue into year's end, I think the fundamentals are as strong as ever.

In the new year, look for Great-West to continue investing in digital tools while keeping an eye out for acquisition targets.

Canadian Pacific Kansas City

CP Kansas City (TSX:CP), or CPKC, looks like an interesting option after recently slipping into a correction of its own (down around 12% from its highs). Undoubtedly, the rail environment has been filled with headwinds. And while CPKC could feel the full impact of Trump tariffs, I think that the company has a lot of other things going for it.

The company's newly launched hydrogen refuelling stations in Edmonton and Calgary are quite an intriguing development. Indeed, hydrogen locomotives could be the way of the future. But there's a long way to go if such a clean-energy technology is going to really move the needle. At the time of writing, there are just three hydrogen-powered locomotives in service.

As more refuelling stations pop up, one has to think that many such locomotives will be put on the tracks. Over the next decade, perhaps hydrogen and cleaner locomotives could be key to steering the industry into a greener future. The company reportedly has fuel cell orders in place that could help it move forward with its long-term hydrogen plans.

In the meantime, there are plenty of headwinds to move through. With a still-lofty 28.45 times trailing P/E multiple, it may take a while before the firm can proceed higher. Either way, I wouldn't bet against the name if you're looking for a forward-thinking railway.