A Top Canadian Stock to Buy With $1,000 in 2026
Alex Smith
1 hour ago
2026 has already been a weird year for Canadian stocks. Software stocks have indiscriminately been sold off, regardless of whether AI could hurt or help their business. The same sell-off has started to impact service stocks. This sell-off seems even more befuddling.
Colliers: A top growth-at-a-reasonable price stock
Colliers International Group (TSX:CIGI) is one of the stocks that has been affected by this trade. This $7.6 billion stock is down 22% in the past five days and 26.5% since the start of the year.
The massive sell-off is a little confounding. Colliers is a leading global provider of real estate services, engineering and project management, and investment management. Most of its services require highly skilled professionals that offer onsite expertise and management.
Strong year-end results for Colliers in 2026
Colliers just announced its year-end results last week. While it missed quarterly expectations, it was hardly a reason for a 20% sell-off. In fact, Colliers delivered great year-end results.
Net revenue rose 14% to $4.9 billion, of which 5% was organic growth. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) likewise increased 14% to $732.5 million. Adjusted earnings per share (EPS) was up 14% to $6.58.
Over 70% of the companyâs income came from recurring revenues. It also enjoyed very strong cash flow conversion of 105% of earnings.
Colliers has been growing by a mix of organic initiatives and acquisitions. It has mainly focused on bolstering its rising engineering franchise. However, it made real estate and investment management tuck-ins during the year.
Colliers has all the hallmarks of a quality stock
It is the diversification that makes this business interesting. Its commercial real estate business can be very profitable, but it can also be cyclical and lumpy. Luckily, it is complemented by property management and valuation revenues with higher recurrence and predictability.
Likewise, its engineering business has a focus on project management. Often, its projects can last years and even decades, so the revenue streams it earns are very much recurring. Investment management offers recurring, high margin income. Today, Colliers is much more than the brokerage business that it was known for in the past.
Its CEO, Jay Hennick, is the largest owner with an over 10% stake in the company. Overall, insiders own around 15% of the company. Colliers benefits strategically from a partnership model whereby newly acquired managers get a stake in Colliersâ stock.
For 2026, Colliers is targeting mid-teens revenue, adjusted EBITDA, and EPS growth. While its leverage (2.7 times debt-to-EBITDA) has risen due to several major acquisitions in early 2026, it does expect strong free cash flows will bring that into the low two times leverage range.
The Foolish bottomline
After the pullback, Colliersâ stock looks attractive. It trades with a free cash flow yield of 8%, a forward price-to-earnings ratio of only 14.6, and an enterprise value-to-EBITDA ratio of 10.
For a company that has grown by a 15% compounded annual growth rate over the past five years (and should grow by a similar rate in 2026), it seems like a very reasonably priced stock after the pullback. If I had $1,000, Colliers would be a stock I’d look to add to my portfolio now.
The post A Top Canadian Stock to Buy With $1,000 in 2026 appeared first on The Motley Fool Canada.
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More reading
- 2 Top TSX Stocks to Buy Today for Long-Term Growth
- This âBoringâ TSX Stock Could Beat the Market in 2026
- Undervalued Canadian Stocks to Buy Now
- Top Canadian Stocks to Buy With $25,000 in 2026
- Hereâs the Average Canadian TFSA at Age 40
Fool contributor Robin Brown has positions in Colliers International Group. The Motley Fool has positions in and recommends Colliers International Group. The Motley Fool has a disclosure policy.
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