Buy Canadian: These TSX Stocks Could Outperform in 2026

Buying Canadian could work in 2026 for many investors. The domestic market is rich with companies that generate real cash flow, pay dividends, and operate in essential sectors like energy infrastructure, utilities, financials, and industrials. When global growth slows or markets wobble, Canada’s resource base and steady domestic demand act as a ballast, and investors often rotate into names that offer yield plus resilience. That’s why today we’re looking at three Canadian stocks to consider.

GSY

goeasy (TSX:GSY) has been one of Canada’s standout non-bank lenders. It has grown from a small subprime player into a diversified consumer credit and leasing platform. The Canadian stock’s focus on underserved customers, disciplined underwriting, and diversified loan products have helped it deliver outsized returns over the years. Recent earnings showed that goeasy continues to grow originations and maintain healthy credit performance, with net earnings and adjusted earnings per share (EPS) increasing compared to previous periods. The Canadian stock’s cash flow remains robust, supporting both organic growth and dividend increases.

Despite macro headwinds broadly weighing on consumer lending names , goeasy’s performance has remained durable. Its customer base tends to be less sensitive to credit tightening and its diversified business operations smooth out cyclical dips. The Canadian stock’s long runway in Canadian personal credit, coupled with expansion in leasing and Buy-Now-Pay-Later services, suggests that it can continue outperforming in 2026.

ATS

ATS (TSX:ATS) operates in the high-growth automation and robotics space, building tailored systems for manufacturers and supply-chain operations. Over the past decade, ATS has transformed into a global leader in automation solutions, benefiting from broad secular trends like re-shoring, digital transformation, and the rising need for efficient production systems. Recent earnings showed strong top-line growth and improving margins, with several consecutive quarters of double-digit revenue expansion and order backlogs that indicate sustained demand. Cash generation improved alongside disciplined cost management.

Investors looking toward 2026 may find ATS appealing as its end markets remain under penetrated. Many manufacturers are just beginning to automate their operations, and ATS is well-positioned to capture that demand. The Canadian stock’s diversified global footprint also insulates it from weakness in any single region. If automation continues to be a corporate priority, ATS’s backlog and revenue trajectory could accelerate into 2026.

SJ

Stella-Jones (TSX:SJ) is a niche leader in pressure-treated wood products such as railway ties and utility poles. These are products that underpin critical infrastructure across North America. Its earnings performance in recent reports has demonstrated steady revenue growth and resilient margins, supported by consistent demand from rail and utility customers. Even in periods of economic softness, the need to maintain and renew essential infrastructure keeps Stella-Jones’s order book firm. The Canadian stock’s disciplined acquisition strategy and focus on operational efficiency have helped it compound earnings quietly over many years.

Looking into 2026, Stella-Jones could outperform because it sits at the intersection of infrastructure demand and stable recurring earnings. Government commitments to modernize infrastructure and maintain energy delivery networks create a long-duration demand profile for products Stella-Jones manufactures. Analysts often note that infrastructure spending is less cyclical than consumer markets, and Stella-Jones’s position as a category leader gives it pricing power and customer loyalty. For investors seeking a Canadian stock with durable earnings, real asset linkage, and a track record of compounding value, Stella-Jones stands out as a name worth watching.

Bottom line

All together, these are three Canadian stocks that could certainly help expand a portfolio in 2026. Even now, here’s what $7,000 could bring in from each option.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTGSY$123.6156$5.84$327.04Quarterly$6,922.16SJ$86.6680$1.24$99.20Quarterly$6,932.80ATS$36.90189$0.00$0.00—$6,974.10

With interest rates expected to stay supportive for income stocks and global supply chain investments shifting back toward North America, Canadian stocks with strong fundamentals are well-positioned to outperform. That’s why these three are top choices on the TSX today.

The post Buy Canadian: These TSX Stocks Could Outperform in 2026 appeared first on The Motley Fool Canada.

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More reading

• The 3 Best TSX Stocks I’d Buy Now for 2026 and Beyond
• 2 Magnificent TSX Dividend Stocks Down 40% to Buy and Hold Forever
• 1 Excellent TSX Dividend Stock, Down 43%, to Buy and Hold for the Long Term
• 1 Canadian Stock Ready to Surge in 2026 and Beyond
• How to Build a Powerful Passive Income Portfolio With Just $20,000

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends ATS Corp. and Stella-Jones. The Motley Fool has a disclosure policy.