Here Are My Top 2 TSX Stocks to Buy Right Now

After an eventful 2025 and with many top TSX stocks trading at or above fair value, it’s no surprise that a lot of investors are unsure about what stocks to buy right now.

On the one hand, there’s still a ton of uncertainty in both the economy and the market. Many of the themes that drove stocks higher in 2025 are starting to cool off, whether that’s the gold price rally or the AI boom losing some momentum.

On the other hand, interest rates are finally moving lower, and investors and economists alike expect further rate cuts in 2026, which should help support stock prices over the long run.

That’s why being selective matters more than ever today. You don’t want to overpay for stocks, and finding high-quality companies trading at attractive valuations is always ideal.

At the same time, though, a stock trading at fair value with strong long-term growth potential is often a better investment than a mediocre company that looks cheap. A discount can only close once, if you’re lucky, whereas a high-quality business that continues growing can compound returns for years.

That’s what long-term investing is really about. You don’t need dozens of stocks or perfect timing. Owning a small number of exceptional companies and letting them compound over time is often the most effective way to build wealth.

So, with that in mind, here are my top two TSX stocks to buy as we head into 2026, ones that you can plan to hold for the long haul.

An ultra-cheap residential REIT

Although most stocks on the TSX are trading at or above their fair value, a handful of high-quality names still offer investors a significant opportunity. So, if you’re looking for a top TSX stock that’s trading unbelievably cheap right now, Canadian Apartment Properties REIT (TSX:CAR.UN) is one I’d recommend.

CAPREIT, as it’s known, is the largest residential REIT in Canada, with a massive and highly diversified portfolio of apartment buildings spread across the country.

What makes CAPREIT one of the top TSX stocks to buy now and hold for the long haul is that residential real estate is about as reliable as it gets. People always need a place to live, which is why CAPREIT has been able to generate consistent cash flow through just about every market environment.

That’s why the fact that you can gain exposure to a high-quality and diversified residential real estate portfolio across Canada at a major discount is such a significant opportunity.

In fact, right now, CAPREIT trades at a forward price-to-adjusted-funds-from-operations (P/AFFO) ratio of just 15.4 times. That’s not only well below its 5- and 10-year averages of 22.9 and 23.5 times, respectively, but it’s also essentially the lowest valuation CAPREIT has had in over a decade.

So, not only is CAPREIT trading at the cheapest valuation it has seen in years, but with interest rates expected to continue declining into the new year, the economic outlook should become a major tailwind for REITs going forward.

Many other high-quality Canadian REITs have already started to recover and rally. So, while the largest and most diversified residential REIT is still trading this cheaply and offering a yield of more than 4.2%, it’s easily one of the top TSX stocks to buy now.

One of the top TSX stocks to buy now and hold for decades

In addition to CAPREIT, another top TSX stock to buy right now is Brookfield Renewable Partners (TSX:BEP.UN).

Like CAPREIT, Brookfield is another stock that stands to benefit significantly as interest rates move lower. However, its appeal goes well beyond the macro backdrop.

There’s no question that renewable energy is one of the best long-term industries investors can gain exposure to. And while there are plenty of green energy stocks to consider, Brookfield is easily one of the best ways to do it.

The company owns and operates renewable power assets all over the world, and that global diversification is a major advantage. It reduces risk, makes cash flow more resilient, and gives Brookfield exposure to growth opportunities across multiple regions rather than relying on a single market.

So, if you’re looking for a top TSX stock to buy now, Brookfield not only offers decades of growth potential; it also pays you to wait with an attractive, growing, and sustainable 5.6% dividend yield today.

The post Here Are My Top 2 TSX Stocks to Buy Right Now appeared first on The Motley Fool Canada.

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More reading

• 2 Magnificent TSX Dividend Stocks Down 19% to Buy and Hold Forever
• Top Canadian Stocks to Buy Right Now With $7,000
• 3 High-Yield Canadian Stocks for Worry-Free Passive Income
• 3 Dividend Stocks Worth Holding Forever
• Top Stocks I’d Buy and Hold in 2026

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.