These 2 TSX Stocks Are Leaving the Rest of the Market in the Dust

These two Canadian stocks have delivered market-beating returns this year, despite a tough year for the broader market.

| More on:
Paper airplanes flying on blue sky with form of growing graph

Image source: Getty Images

As we near the end of the year, we can safely say that the S&P/TSX Composite Index will end on a lower note than where it began in 2022. After an incredibly volatile year for the market, the Canadian benchmark index is down by 8.44% year to date as of this writing.

Time and time again, the market has shown signs of life. However, it does not take long for the market to look like it will recover before it begins sliding again.

The market seemed to be going well as the index saw an upward trend of almost 13% between October 11 and December 1, 2022.

However, the index slid by over 5% in the first two weeks. While the S&P/TSX Composite Index paints a picture of the entire market as a whole, it does not mean every TSX stock has suffered at the hands of macroeconomic issues. Pockets of the market have performed better than the rest.

Today, I will discuss two market-beating TSX stocks that you can add to your portfolio if you seek winners in a market riddled with losses.

George Weston

George Weston (TSX:WN) is a $24.59 billion market capitalization food processing and distribution company that’s well known as a food and drug retailer. Based in Toronto, the stock has put up a terrific performance this year, as the chart above shows. The stock saw a significant boost in its share price performance in the first two weeks of December after it published its latest quarterly earnings report.

The company reported quarterly revenue growth of 8.2% year over year, and its net income exploded by 279% in the same period. The company’s earnings per share grew by almost 300% year over year. As of this writing, George Weston stock trades for $173.37 per share, up by almost 20% year to date.

Dollarama

The food and drug retailer has posted a market-beating performance on the back of a quarter where it beat analyst estimates. Dollarama (TSX:DOL) is a dollar store retailer doing the same, and it potentially has more in store with the upcoming holiday season boost.

With one of the largest dollar store retail chains in the country under its belt and expanding operations in Latin America through the Dollar City chain, it can be one of the top growth stocks to add to your portfolio today.

Dollar stores tend to perform well during market downturns, and 2022 has been a year riddled with that. As the holiday season comes up, this will be the first time in a few years that there will not be pandemic-related restrictions limiting foot traffic. Between the increased foot traffic at brick-and-mortar locations and the festive spirit, Dollarama stock might be in for a substantial boost in the coming weeks.

Foolish takeaway

While the two TSX stocks have delivered market-beating returns, it is essential to remember not to get carried away when allocating money to growth stocks. Stock market investing is inherently risky, and investing in growth stocks entails greater risk. Identifying stocks beating the market based on how the underlying businesses can perform in different market environments is essential.

Dollarama stock and George Weston stock have performed well due to the defensive nature of the two businesses. The performances of both stocks throughout the year exemplify why they can be excellent additions to your investment portfolio.

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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

grow money, wealth build
Dividend Stocks

Got $3,000? 3 TSX Growth Stocks to Buy in January 2023

Top TSX growth stocks that look appealing for 2023.

Read more »

woman data analyze
Dividend Stocks

Need Passive Income? Turn $15,000 Into $851 Annually

This passive-income stock is already climbing higher, up 16% in the last three months! Yet it's still valuable, so you…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: 3 Reliable Canadian Dividend Stocks to Buy Now for Passive Income

Top TSX dividend stocks now appear oversold.

Read more »

Dividend Stocks

For $100 in Passive Income Each Month, Buy 1,500 Shares of This REIT

REITs such as Northwest Healthcare can enable investors create a passive-income stream as well as benefit from capital gains.

Read more »

A colourful firework display
Dividend Stocks

2 Canadian Growth Stocks (With Dividends) to Start 2023 With a Bang

Here are two of the best dividend-paying Canadian growth stocks you can invest in at the start of 2023 and…

Read more »

sale discount best price
Dividend Stocks

4 Insanely Cheap Canadian Stocks to Buy for Passive Income

The recent bear market has created some incredible bargains, especially for those looking for passive income. Here are four cheap…

Read more »

A bull outlined against a field
Dividend Stocks

3 Cheap Stocks I’d Buy Before the Bull Market Arrives

Undervalued TSX stocks such as Savaria and Well Health can help investors generate market-beating gains when markets recover.

Read more »

Increasing yield
Dividend Stocks

5 Canadian Dividend Stocks With Yields of 4% or More

If you want dividends that yield over 4%, you don't have to look far. Here are five large-cap Canadian stocks…

Read more »