TSX at Record Highs — But These 2 Stocks Still Look Like Screaming Buys

Even in a red-hot market, these undervalued TSX stocks could deliver strong gains from here.

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Key Points

  • TSX is hitting record highs, but many fundamentally strong stocks still look undervalued.
  • Despite its global scale and improved food execution, Alimentation Couche‑Tard trades about 13% below its 52‑week high.
  • Brookfield Infrastructure trades nearly 16% below its 52‑week high, yields 5.6% annual dividend, and offers steady cash flow plus growth from recent big acquisitions.

After rallying by nearly 25% over the last year, the TSX Composite benchmark is continuing to touch new record highs in September 2025. While the macroeconomic environment and global economic signals are still unfolding in unpredictable ways, investors seem increasingly willing to take risks again.

The rally feels broad-based, but that doesn’t mean everything’s already expensive. In fact, many fundamentally strong companies still look undervalued based on their long-term growth prospects.

So, in this article, I’ll walk you through two top TSX stocks that look like screaming buys, even as the index touches new all-time highs.

Alimentation Couche-Tard stock

First up is Alimentation Couche-Tard (TSX:ATD), a top TSX-listed convenience store operator with a strong international presence and a smart expansion strategy. ATD stock currently trades at $73.21 per share, giving it a market cap of around $68.5 billion.

Despite the broader market rally, Couche-Tard stock still sits about 13% below its 52-week high, which makes it appealing for long-term investors looking for value. It also pays a quarterly dividend, with a 1.1% annualized yield.

Couche-Tard operates more than 17,000 locations across 29 countries. In the latest quarter ended in July 2025, the company’s total revenue fell 5.1% YoY (year over year) due mainly to lower average fuel prices. Nevertheless, its gross profit still climbed by 4.4% from a year ago with the help of improved food segment execution and disciplined expense control.

Even as weaker consumer spending continues to take a toll on Couche-Tard’s financials, it is continuing to invest for the future. For example, its recent US$1.6 billion acquisition of 270 GetGo sites in the U.S. was a major move that not only expands its footprint but gives it access to a successful food and loyalty platform.

Overall, Couche-Tard’s strong balance sheet, disciplined cost structure, and renewed focus on food, fuel, and tech-driven convenience make it a top TSX stock to buy while it’s still trading below its peak.

Brookfield Infrastructure stock

Now, let’s look at Brookfield Infrastructure Partners (TSX:BIP.UN), an income-generating TSX stock that’s still trading well below its highs. This infrastructure giant has a strong portfolio of assets in utilities, transport, midstream, and data — operating across the Americas, Europe, and Asia-Pacific.

Trading about 16% below its 52-week high, Brookfield Infrastructure stock is currently priced at $42.45 per share, giving it a market cap of $27.7 billion. At this market price, it also offers a solid 5.6% annualized dividend yield, paid quarterly.

In the second quarter of 2025, Brookfield Infrastructure posted a sharp increase in its net profit to US$69 million, as its funds from operations also jumped 5% YoY. Inflation-linked pricing, strong utilization in transport, and higher activity in its midstream assets were some of the key reasons behind this strong performance.

Besides these factors, Brookfield is also making big strategic moves. For example, it recently closed a US$9 billion acquisition of Colonial, the largest refined products pipeline in the United States. Similarly, it also signed deals to buy a leading U.S. fibre provider and a major North American railcar leasing platform. Altogether, these represent over US$1.3 billion in capital deployment for Brookfield Infrastructure.

With reliable cash flow, a rich dividend, and exposure to key sectors benefiting from long-term trends like digitalization and energy transition, Brookfield Infrastructure looks like another top TSX stock you can buy — especially at current levels.

Fool contributor Jitendra Parashar has positions in Alimentation Couche-Tard. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

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