2 Canadian Stocks to Outperform the Market in 2022

These two TSX stocks are seemingly well positioned to outperform the broader market in 2022.

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The rising number of Omicron variant cases worldwide came along like a stick that stuck itself into the spokes of a fast-moving bicycle. As we kick off 2022, the TSX is still recovering from the weeks of volatility the market saw in the last few weeks of 2021. At writing, the S&P/TSX Composite Index is on an upward trajectory, but it is still down by over 2% from its latest all-time high on November 12, 2021.

Market volatility can cause significant problems for investors who want to secure growth stocks in their portfolios. However, value-seeking investors can find market environments like this as an excellent opportunity to find high-quality, undervalued stocks for a bargain.

Today, I will discuss two Canadian value stocks that seem well positioned to outperform the broader market this year.

Waste Connections

Waste Connections (TSX:WCN)(NYSE:WCN) is an excellent stock to own regardless of what is happening in the economy. Waste Connections is a $43.84 billion company headquartered in Ontario. The need to dispose of waste is crucial across all sectors of the economy, and the company has already seen the demand for its services translate to its performance on the stock market.

At writing, Waste Connections stock is trading for $168.27 per share, and it is up by over 30% in the last 12 months. The growing energy demand could boost activities in oil exploration and production in the energy industry, providing Waste Connections with a boost in its revenues through that segment.

The company has also acquired several assets worth over US$240 million that could increase its annualized revenues by $100-150 million. The company is likely to continue its strong run in 2022.


Nuvei (TSX:NVEI)(NASDAQ:NVEI) is another stock pick that could outperform the broader market in 2022. Nuvei is a Montreal-based $11.70 billion market capitalization electronic payment-processing company. It is Canada’s largest private and non-bank payment-processing company that plays a vital role in the booming e-commerce industry. The last few weeks have been tough for Nuvei stock, owing to the short report from Spruce Point Capital.

At writing, Nuvei stock is trading for $81.87 per share, and it is down by over 50% from its all-time high in September 2021. Despite the trouble and doubt created by the short report, there is no denying the fact that digital transactions are rising with the growth of the e-commerce industry. Companies like Nuvei will be crucial in expanding the industry further.

Nuvei’s strategic acquisitions over the years, and its geographical expansion through them could drive its growth and provide stellar shareholder returns for years to come.

Foolish takeaway

2022 is a new year, and the start of another year of trading on the stock market brings many new opportunities for investors with an eye for value stocks that can outperform the market.

The need for waste disposal in the country will never go away, and the need for payment-processing platforms due to the constant growth in the e-commerce industry will only rise in the coming years. Companies operating in these segments of the economy will likely see a boost in earnings and provide more value to their investors.

Waste Connections stock and Nuvei stock could be excellent additions to your portfolio as 2022 begins.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Nuvei Corporation.

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