Despite the robust strength in the TSX Index over the past year or so, numerous Canadian stocks are trading at pretty decent multiples. Many of the names, I think, have strong fundamentals and could punch well above their weight class in this new year and going into 2026. Of course, 2025 is sure to be a highly uncertain year as a new president heads to Washington.
Though political moves can rock and shock stock markets, I wouldn’t step away from any of the potential bargain stocks that are on your radar. If you’re still a fan of the long-term growth trajectory and the narrative, I think it makes little sense to postpone any buys just because you’re not a big fan of any of the proposed moves that President Trump could enact.
At the end of the day, it’s hard to tell where the stock market will head over just one year. Though most big-name Wall Street strategists and analysts see another year of gains for the S&P 500 and TSX Index (Brian Belski thinks the TSX Index will beat the S&P 500 this year!), it seems like a good idea to be optimistic but cautiously so. Indeed, cautious optimism may prevent you from doubling or even tripling down on the red-hot momentum plays that could fold your hand at any time.
Sure, you may not be able to gain the most from the next bull run in tech titans by rebalancing your portfolio to be more defensively focused, but, at the very least, you won’t take too hard of a hit once the next stock market correction comes around.
Today, the TSX Index is around 4% away from its all-time high. The dip seems more like an entry point than an exit point, especially if you’re looking for a name to hold over the next 10 years.
A convenient value buy right now.
At this juncture, Alimentation Couche-Tard (TSX:ATD) stands out as a name that could be ready to pick itself up after a “lost year” of sorts. Believe it or not, the convenience retailer that’s pretty much perfected growth by the merger and acquisition (M&A) game stagnated last year.
In the past year, shares are down just north of 3%. That’s some abysmal performance in what was a stellar year for Canadian and American stocks. Indeed, we haven’t had much news regarding the firm’s plans beyond the 7-Eleven bid. Indeed, it feels like the pursuit has reached a stalemate of sorts!
Indeed, developments other than the 7-Eleven takeover seem to be dwarfed. Indeed, such a deal would be a historic mega-merger, the likes of which we’ll never see again in the convenience store industry. And though the stock is going to likely move a great deal based on news from the 7-Eleven pursuit, I think that it makes sense to consider other factors because, like it or not, Couche-Tard will have a plan to move forward with or without its prize.
That’s why I think ATD stock is a fantastic buy, regardless of the outcome, while it’s going for 19.5 times trailing price to earnings (P/E). The correction in the name seems like a gift, one that investors should accept willingly. I have no idea if the stock is ready to surge for the year and make up for last year’s weak performance. Regardless, I like it for the next three to five years.
