Canada’s primary stock market is on fire after seven trading days in June 2025. The TSX is up nearly 7% year to date, continues to defy tariff headwinds, and posted three record highs in the first week alone. Only energy and healthcare, among its 11 primary sectors, are in the red.
Each of the winning sectors has constituents on a hot streak. A consumer discretionary stock worth watching is Canadian Tire Corporation (TSX:CTC.A), given its +26.9% advance since the start of March. At $177.28 per share, current investors enjoy a +19.9% year-to-date gain on top of the 4% dividend yield.
Proudly Canadian
The $10 billion nationwide corporation has morphed from a mechanic shop and parts company in 1922 to an iconic Canadian retailer. It went public in 1944 and then entered an expansion phase in the 1960s and 1970s. Today, the Consumer Brands Division, comprising owned brands, provides the group with a home-grown competitive advantage.
Canadian Tire is undoubtedly the go-to retailer for most Canadians. Management has been relentless in connecting with consumers over the years through various campaigns and brand slogans. The U.S.-initiated tariff war in 2025 sparked fervour, leading to the emergence of the “Buy Canadian” movement.
Canadian consumers are reshaping loyalty, fully supporting local businesses and the economy while protecting domestic jobs. More importantly, it asserts national pride in the same way that Canadian Tire does.
Strong retail fundamentals
According to its President and CEO, Greg Hicks, Canadians are choosing CTC in 2025, as evidenced by the Q1 2025 financial results. In the three months ending March 29, 2025, retail sales and revenue increased 5.1% and 3.7% year over year to $3.42 billion and $3.45 billion. However, net income declined 40.6% to $56.9 million compared to Q1 2024.
Still, Hicks was pleased with the Q1 performance because it reflects the proactive choice to buy for growth. He also notes the positive sales impact of seasonal weather and seasonal products, as well as patriotic purchasing. Last, retail fundamentals remain strong.
Canadian Tire also owns a majority stake in CT REIT, a $3.84 billion real estate investment trust. Through the $3.84 billion REIT, Canadian Tire leverages its real estate expertise to help generate reliable and durable monthly income distributions to unitholders.
Transformative growth strategy
CTC launched True North, a new four-year transformative growth strategy. Besides driving core retail growth, it aims to increase shareholder value above the company’s historic levels. CTC will invest $2 billion in key focus areas, including the expansion of the Triangle Rewards system and store enhancements.
In late May 2025, CTC announced it would acquire the intellectual property of Hudson’s Bay Co. ULC, another long-standing Canadian company. “This choice feels as strategic as it feels patriotic. It builds on our generational connection to life in Canada, and it fits our new True North strategy,” Hicks said.
The company also formed a strategic partnership with WestJet to enhance the scale and value of their respective rewards system. Starting in 2026, Canadians can earn rewards on both travel and everyday purchases through the Triangle Rewards and WestJet Rewards programs.
Rock-solid than hot
Canadian Tire boasts a Canadian identity and a wide economic moat. More importantly, the resilient business model has been paying dividends since the 1990s. This retail giant is more rock-solid than hot.
