3 TSX Stocks That Look Well Positioned to Beat the Market in 2026

The spike in oil prices last month weighed on the broader stock market but provided a significant tailwind for oil producers. Canadian stocks, led by the energy sector, have remained resilient amid heightened geopolitical risks. As of this writing, the S&P/TSX Composite Index is up 4.6% year-to-date, pulling ahead of major U.S. benchmarks.

However, shifting U.S. rhetoric from military de-escalation toward escalation could keep oil prices and market volatility elevated in April. Nonetheless, three TSX stocks are well-positioned to outperform in 2026. They allow investors to focus on favourable business trends rather than depend on geopolitical outcomes.

Explosive growth

While many stocks outside the energy sector may face downward pressure if the oil shock persists, some exceptions exist. 5N Plus (TSX:VNP), a leading global producer of specialty semiconductors and performance materials, is worthy of investors’ attention. At $31.48 per share, this basic materials stock boasts a market-beating year-to-date gain of 77.7%.

Notably, VNP’s trailing one-year price return is plus-483%, with more upside on the horizon. This $2.9 billion company, with its two core businesses, serves clients in critical end markets. Its Specialty Semiconductors segment covers terrestrial renewable energy, space solar power, and imaging and sensing. The Performance Materials segment focuses on health, pharmaceutical, and technical markets.

5N Plus is fresh from a record-setting year. In 2025, revenue increased 35.2% year-over-year to $391.1 million while net earnings climbed 244.2% to $50.6 million compared to 2024. Management expects strong demand in Specialty Semiconductors and persistent underlying long-term growth trends to drive financial performance for years to come.

VNP has moved past the “scratching the surface” stage and is due for explosive growth.

High-growth momentum   

MDA Space (TSX:MDA) is at the forefront of the rapidly expanding global space industry. The $5.2 billion space company delivered record revenue ($1.6 billion) in 2025 on top of the $4 billion backlog at year-end, which is nearly two years of projected revenue. Adjusted net income rose 71% year-over-year to $190 million.

According to its CEO, Mike Greenley, the massive backlog and $40 billion pipeline assure substantial revenue growth for years to come. Moreover, the market demand for MDA’s dual-use, production-ready products and services should drive new opportunities.

MDA currently trades at $40.41 per share (+51.7% year-to-date), with an overall return of plus-484.4% in three years. Market analysts’ 12-month average price target is $53.62, a potential upside of 32.7%.

Next industrial powerhouse

Bird Construction (TSX:BDT) is a strong buy for its revenue and earnings growth visibility. The positive business outlook stems from its $11 billion combined and pending backlog at year-end 2025. At $41.65 per share, current investors enjoy a nearly 47% year-to-date return and partake in the 2% dividend.

Its President and CEO, Teri McKibbon, said, “Bird remains strongly positioned for Canada’s long‑duration nation‑building investment cycle. With record liquidity and a strong balance sheet, Bird enters 2026 with flexibility, visibility, and momentum.”

The $2.3 billion construction company is slowly transitioning into an industrial powerhouse as it moves away from low-margin residential and commercial projects. Bird Construction is ready to take on complex industrial and infrastructure work, with AI and data centre build out as growth catalysts.

Winning investments

5N Plus, MDA Space, and Bird Construction, all 2025 TSX30 winners, are well-positioned to beat the market in 2026. Their revenue and earnings visibility are buffers against the war-weary macro environment.

The post 3 TSX Stocks That Look Well Positioned to Beat the Market in 2026 appeared first on The Motley Fool Canada.

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More reading

• 2 Impressive Growth Stocks Worth Buying Today and Holding for the Long Haul
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• The Smartest Growth Stock to Buy With $1,000 Right Now
• A Consistent Monthly Payer With a Modest 2.5% Dividend Yield

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends MDA Space. The Motley Fool has a disclosure policy.