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Want to Beat the TSX? These 4 Stocks Have Doubled in 5 Years

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If you’re less than enamoured with the market’s abysmal returns this year, you’re not alone. And although the TSX has recovered lately, its losses early in the year negated the progress that it made late last year.

While mirroring the market may help minimize market-related risks to your portfolio, you’ll also minimize your returns as well, particularly if you’re investing in stocks on the TSX.

In five years, the TSX has risen 23%, which equates to a compounded annual growth rate (CAGR) of just 4.2%. By comparison, the Dow Jones has grown by 71% during that time for a CAGR of 11%.

However, before you go out and buy stocks on the U.S. exchange, there are plenty of good stocks you can find in Canada. Below are four stocks that have more than doubled in value in the past five years.

Air Canada  (TSX:AC)(TSX:AC.B) has been on a tear lately with the stock recently hitting all-time highs. From less than $3 a share, the stock has soared to $28, and with the economy still growing, the stock still has a lot more upside from here.

While investors may be weary of buying a stock that’s trading near a 52-week high, Air Canada is still a good value buy, despite the astronomical growth. At a price-to-book ratio of 2.3 and price-to-earnings multiple of less than four, it’s hard to find a stock that has done so well with so much potential at such a reasonable value.

While investors have been flocking to hyped-up pot stocks that are trading at ridiculous multiples, Air Canada’s stock has quietly become a must-buy.

Great Canadian Gaming Corp.  (TSX:GC) has had a strong performance in the past five years as well. Although it may be tame compared to Air Canada’s returns, Great Canadian’s stock has nearly quadrupled from the $9 a share that it was trading at back in 2013.

The company operates in a popular industry that just seems to never go out of style, and after winning a bid to operate more casinos in Ontario last year, there is still a lot of growth left for the stock.

New Flyer Industries Inc.  (TSX:NFI) is one of my favourite stocks because of how simple the business model is and how easy it is to see its trajectory continuing. The company manufactures buses, and it’s an industry that just isn’t likely to be going anywhere in the near future. As long as populations grow, and people opt to not use a vehicle, the demand will remain there.

The proof is in the results: from $10 a share, the price has risen more than 450% in the past five years. Sales have more than doubled during that time and in the trailing 12 months the company has been able to net a solid 6.7% profit margin as well.

Stars Group Inc.  (TSX:TSGI)(NASDAQ:TSG) is another gaming stock on this list. It has performed tremendously well over the years. The stock has grown from $5 a share in 2013 to more than seven times that amount.

While the PokerStars brand may have fueled a lot of the company’s growth over the years, Stars Group has been able to grow its other segments as well, and that will help the share price continue to rise.

3,985 stocks listed between the TSX & TSXV, but here are the 5 we'd buy right now!

Overwhelmed by how many public companies there are to choose from in Canada? Motley Fool Canada Director of Research Iain Butler has you covered. Once a month, Iain and the rest of our team at Stock Advisor Canada reveal their five favourite Canadian stocks for new money now.

Considering they've walloped a "stuck in the mud" TSX by 10% over the past 4 years with truly life-changing winners like Shopify (up 236%, more than tripling your money), you'll probably want to have your front-row seat reserved when our next five "Best Buys Now" are released - exclusively on behalf of Stock Advisor Canada members.

To make sure your name is on the list, just click here now... before the curtain is lifted without you.

Fool contributor David Jagielski has no position in any of the stocks mentioned.

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