These Canadian Stocks Are Quietly Outperforming the Market

Although the TSX as a whole is up nearly 15% year-to-date, here are five Canadian stocks that have been outpacing the index.

Despite the uncertainty about the future of both the domestic and global economy, the TSX has been on an impressive run to start the year. Not only has it earned investors a total return of more than 22% when factoring in dividends over the last 12 months, but it has also earned investors a total return of 14.8% year-to-date so far, as many Canadian stocks continue to expand their operations rapidly.

This is why finding the highest-quality stocks on the market is essential. You could, of course, gain exposure to the entire index and earn a steady return. However, when you buy the highest-quality stocks, you have the potential to outperform the market for years.

And while big-name tech stocks typically dominate the headlines when it comes to finding high-growth stocks, as you’ll see from this list, even the most reliable companies can outpace the TSX over the long haul or in certain environments.

So, if you’re wondering what Canadian stocks have been performing best so far in 2025, here are five stocks that have outperformed the TSX so far year-to-date.

diversification and asset allocation are crucial investing concepts

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One of the best gold stocks on the TSX

One of the biggest winners on the TSX this year has been B2Gold (TSX: BTO), which has earned investors a total return of more than 62% year-to-date.

In fact, many gold stocks have seen their share prices soar as the price of gold has gone on a massive rally as a result of persistent inflation and uncertainty around the global economy.

Furthermore, with B2Gold being one of the lowest-cost producers in the sector, it’s been one of the prime beneficiaries, since every time the price of gold climbs, its margins expand significantly.

In fact, the low-cost Canadian gold stock has already seen its share price climb to $5.60, but analysts still see more upside, with the average target price sitting at $6.59, a roughly 17% premium to its current trading price.

Two top defensive stocks

It’s not surprising to see investors gravitating toward defensive names in an uncertain environment, but the magnitude of the gains has been impressive.

For example, Fortis (TSX: FTS), typically known as a reliable but slower-growing utility, has earned investors a total return of 17.6% year-to-date, quietly outpacing the TSX.

And while some of the rally can be attributed to the fact that interest rates are expected to decline in the near term, it also shows the appetite investors have for steady, reliable dividend stocks in this uncertain market environment.

Meanwhile, Dollarama (TSX: DOL), one of the best Canadian stocks of all time, has unsurprisingly been even stronger, continuing to execute to perfection while capitalizing on consumers’ appetite for cheaper staples and household goods in this economy.

The defensive growth stock has rallied 31.4% year-to-date and now sits just off its record high, trading at more than 38.5 times forward earnings.

Two of the top growth stocks Canadians can buy

In addition to reliable defensive stocks that have rallied significantly, some of the top Canadian growth stocks have also staged an impressive comeback.

For example, both Aritzia (TSX: ATZ) and goeasy (TSX: GSY) saw their share prices decline significantly at different points over the last 18 months, meaning long-term investors who bought the dip have been rewarded considerably.

Just this year, Aritzia has surged 53.8% as it continues to expand rapidly, with a massive runway for growth in the U.S. Meanwhile, goeasy has earned investors a total return of 27.8% year-to-date, nearly double the pace of the TSX, as it expands its lending business while carefully managing credit risk.

So, even with plenty of noise and concern about the health of the economy, not only does the TSX continue to rally, but there is also a wide range of high-quality companies across various sectors quietly growing and compounding investors’ capital.

Fool contributor Daniel Da Costa has positions in Aritzia, B2Gold, and goeasy. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends B2Gold and Fortis. The Motley Fool has a disclosure policy.

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