3 TSX Superstars That Could Beat the Market in 2026: Get In Now
Alex Smith
1 hour ago
Are you looking for stocks that have a shot at beating the market?
If so, that’s a tall order.
Beating the market is one of the rarest investing achievements in the world, being accomplished by less than 10% of investors over the very long (e.g., +15-year) term. Nevertheless, there are some basic principles behind which stocks tend to outperform. They tend to be profitable, they tend to be relatively small, and they tend to have strong positions in their industries. Given these characteristics, we can come up with a short list of TSX superstar stocks that have a shot at outperforming in 2026.
Alimentation Couche-Tard
Alimentation Couche-Tard Inc (TSX:ATD) is a Canadian gas station and convenience store company that has been underperforming for some time. The underperformance is quite hard to explain. The company has a very strong gas station franchise (Circle K), which is probably the most recognizable in the country. It also operates in the U.S. and Europe. Last quarter, its revenue shot up 20% on a quarter-over-quarter basis (though it was down on a year-over-year basis). Next quarter, the company is likely to report a substantial increase in fuel sales revenue due to high oil prices in the period about to be reported. Despite all of this, the stock is still down from 2024 when fuel prices were nowhere near what they’ve been lately. All in all, ATD has potential.
Brookfield Asset Management
Brookfield Asset Management (TSX:BAM) is one of Canada’s strongest financial services companies. It has an ultra-high-margin alternative asset management business that has an astonishing 57% free cash flow margin, and other excellent profitability metrics. It has US$67 billion (about $91 billion) worth of committed but uninvested capital that will be invested and start earning fees in the next few years. Finally, it has an excellent reputation, with financial legends like Howard Marks on the board and praise from top investors like Bill Ackman and Mohnish Pabrai.
Despite the truckload of virtues that Brookfield Asset Management has going for it, the company’s stock is still down 7% for the year to date and 16% over the last 12 months. True, it was a little pricey at the start of the slide, trading at about 40 times earnings — but recall all that committed capital that will soon start earning fees. Overall, BAM looks set for a reversal.
Metro
Metro (TSX:MRU) is one of Canada’s best-kept secrets. A grocery store, it has sort of a niche as a smaller grocer that sets up shop near subway trains and other such locations where young urban professionals like to shop. This is a niche that the “big two” national grocers haven’t tapped, so MRU appears to have a strong competitive position. The company’s recent earnings results have been consistent with what was just observed: revenue was up 3.8% and earnings up 5.6% in the trailing 12-month period. Despite this, the stock is down 15% over the last 12 months. Nothing is ever for certain, but I think there might be an opportunity here.
The post 3 TSX Superstars That Could Beat the Market in 2026: Get In Now appeared first on The Motley Fool Canada.
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More reading
- A Practical Way to Use Your TFSA Contribution Room to Build Monthly Cash Flow
- The 3 Stocks I’d Buy and Hold Into 2026
- 1 Canadian Stock Ready to Rise in 2026
- How Big Should Your TFSA Be Before You Can Retire?
- How Your 2026 TFSA Contribution Could Eventually Reach $280,000 or More
Fool contributor Andrew Button has positions in Brookfield Asset Management. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.
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