3 Canadian Stocks Quietly Crushing the TSX Today

Fairfax Financial Holdings (TSX:FFH) stock and two other top dogs that could be worth buying this March 2024.

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Canadian investors pay far too much attention to the U.S. tech titans, at least in my humble opinion. With the lacklustre CAD-to-USD conversion rate, I’d argue that it may be a good time to buy a TSX stock with your next big purchase, at least until the loonie and value proposition in the U.S. market improve.

Indeed, it’s just a few red-hot tech names that seem to be pulling the broader U.S. stock markets higher of late. And though the TSX Index isn’t nearly as hot as the Nasdaq 100, I’d argue that it has a good amount of newfound momentum and more value to offer. In a way, the top TSX plays seem to be in a bit of a Goldilocks spot for value-conscious investors who wish to do well over the long term.

In this piece, we’ll check in with four Canadian stocks that I think make for great bets that may even rival the gains to be had from America’s mega-cap tech titans. Without further ado, meet the four TSX stocks quietly beating the TSX in recent years.

Fairfax Financial Holdings

Fairfax Financial Holdings (TSX:FFH) has been on such a magnificent run of late, with shares of the insurer and investment holding company up more than 142% over the past two years. At $1,350 and change, FFH stock looks expensive, but it’s actually still seemingly cheap at 6.2 times trailing price-to-earnings (P/E).

Undoubtedly, underwriting has really improved, and the investment portfolio is starting to see results! Such gains are to be expected from Prem Watsa, a man some call the Warren Buffett of Canada. Moving forward, I believe Fairfax will continue to outpace the TSX Index. Though recent short-seller comments are somewhat concerning, Fairfax’s quick response, I believe, is encouraging for shareholders.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) is one of the best retail stocks to own for the long haul, with shares recently soaring to new heights, seemingly going parabolic in the last few months (shares rose nearly 10% in the past three months alone). Despite the ascent, shares are nowhere near expensive, given the earnings growth rate.

The stock goes for 19.9 times trailing P/E, which seems still too low for the quality of the firm you’re getting. Not to mention management seems to be always finding new ways to acquire its way to greater growth. My take? Stick with ATD stock as it continues impressing and putting the TSX Index to shame!

Dollarama

Dollarama (TSX:DOL) is another retailer (a discount one) that’s been scorching lately, surging more than 33% in the past year. Undoubtedly, inflation-rattled consumers want better deals. And they’re finding it over at the local Dollarama. If you want to save money and get an assurance of the best (or close to it) prices out there, Dollarama is one of the best places to go shopping.

Personally, I think the firm’s run isn’t done yet as it looks to keep expanding, all while the Canadian economy continues feeling bumps in the road. The 31.4 times trailing P/E multiple is stretched. But may be worth the premium if the expansion goes smoothly.

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 Joey Frenette has positions in Alimentation Couche-Tard. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Fairfax Financial. The Motley Fool has a disclosure policy.

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