Market Watch: 3 TSX Stocks Showing Signs of a Major Breakout

Three TSX stocks are well-positioned to sustain an upward trend and reach their highest levels.

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Key Points

  • Despite intra‑day highs above 30,000 on Sept. 23–24, the TSX closed 29,761.30 on Sept. 26 (ending a seven‑week streak); analysts call those intraday records milestones rather than a peak and expect more breakouts when the bull run resumes.
  • Watchlist picks: Element Fleet (TSX:EFN) — global fleet manager, ~+25% YTD and 1.44% yield; Tenaz Energy (TSX:TNZ) — small‑cap growth leader with explosive multi‑year returns and rapidly rising sales; Enerflex (TSX:EFX) — ~+94% YTD, $1.2B engineering backlog and strong Q2 earnings jump with recurring contracts through 2033.
  • 5 stocks our experts like better than [Element Fleet Management Corp.] >

Has the TSX peaked after surpassing 30,000 points twice in intra-day trading on September 23 and 24, 2025? The benchmark closed at 29,761.30 on the 26th, ending its seven-week winning streak.

Many market analysts believe that the two achievements were milestones, not a sign of an impending pullback. Some stocks may have reached their highest levels, but more breakouts are forthcoming when the bull run resumes.

Element Fleet Management (TSX:EFN), Tenaz Energy (TSX:TNZ), and Enerflex (TSX:EFX) are noticeably trending upward and should be on your stock watchlist.

Move the world

Element Fleet Management is a global leader in automotive fleet management. The $14.5 billion company takes pride in a scalable operating platform that it considers a revenue growth magnifier. At $36.01 per share, the industrial stock’s year-to-date gain is nearly 25%. Current investors also partake in the 1.4% dividend.

In Q2 2025, net revenue and net income increased 5.6% and 9.4% to US$290 million and US$112.4 million, respectively, compared to Q2 2024. Its CEO, Laura Dottori-Attanasio, said the quarterly results reflect a strong and resilient business model. The company slogan, “Move the world through intelligent mobility,” refers to modern, data-driven approaches to make fleet operations smarter and more effective.      

Top sector gainer

Tenaz Energy has outpaced its sector peers and the broader market following a 56% advance in the last six months. The small-cap stock is a non-dividend payer with serious growth potential. Also, TNZ has rewarded investors with a significant financial windfall. At $20.76 per share, the three-year return is 1,302.7%-plus, representing a compound annual growth rate (CAGR) of 141%.

The $588.8 million public energy company acquires conventional and non-conventional assets that it can exploit, primarily in international markets. It develops crude oil and natural gas at Leduc-Woodbend, Alberta. In the Netherlands, Tenaz is the second-largest offshore gas producer in the Dutch North Sea.

Tenaz is constantly hunting for international deals, including opportunities with strong potential to expand its asset portfolio. In the first half of the year, total sales rose 144% year-over-year to $77.8 million. Meanwhile, net income was $183.3 million, driven by a $192.2 million gain on acquisition in the second quarter.

Building a better future

Enerflex has held steady in the last 12 months (+93.9%) amid economic uncertainties. EFX trades at $15.31 per share, with a corresponding dividend yield of 0.88%. Its goal is to build a better energy future by deploying solutions and servicing critical infrastructure.

The $1.9 billion company supplies natural gas compression, oil and gas processing, refrigeration systems, and electric power generation equipment. Besides the growing global demand for natural gas, the engineering systems backlog is $1.2 billion. Furthermore, the recurring revenue from contracts extending until 2033 suggests a robust financial outlook for the future.

In Q2 2025, net earnings ballooned to $60 million compared to $5 million in Q2 2024. Enhancing the profitability of core operations, capitalizing on natural gas demand, and maximizing free cash flow are the near-term priorities.

Upward trend

The increased trading volume of Element Fleet Management and Enerflex signals a bullish sentiment. Tenaz Energy has consistently outperformed, with ample room for growth. All three stocks are likely to sustain an upward trend.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Enerflex. The Motley Fool has a disclosure policy.

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