Why Multi-Year TSX Winners Often Come From Surprising Sectors

Discover surprising TSX winners in niche sectors offering steady, long-term growth and potential multi-year returns for smart investors.

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Key Points

  • Dollarama leverages optimized operations and international expansion to compound returns in the retail and discount store sector.
  • Exchange Income excels with diversified cash flows from regional aviation and industrial manufacturing, supported by strong acquisitions.
  • Stella Jones benefits from essential infrastructure ties, stable earnings, and favourable pricing power, making it a resilient stock pick.

When it comes to finding winners on the TSX, it can be easy to assume those major wins come from powerhouses like banks or energy. However, there are many other top performers, ones that stretch over years and years. And some in quite surprising areas of the market.

Whether it’s software firms, packaging companies, or even incredibly niche stocks, these fly under the radar. And in fact, they can offer quite the opportunity. So today, let’s look at some TSX winners that come from some surprising sectors on the TSX today.

DOL

Now it might not be a surprise that Dollarama (TSX:DOL) is a winner, but it does come from a surprising sector. Retail and discount stores are a niche segment, one that many growth investors miss as it’s low glamour and low margin. Yet over the last decade, Dollarama stock has quietly compounded returns.

This performance comes from multiple angles. The retailer has leveraged its negotiating scale and suppliers, optimized logistics, and refined store layouts to boost productivity. Meanwhile, it has expanded through Dollarcity in Latin America and more recently the Reject Shop in Australia.

Its strength was most recently seen during the second quarter of 2026, reporting earnings per share of $1.16, with revenue rising 10%. Meanwhile, return on equity (ROE) hit over 135%! Furthermore, investors were treated to a renewed buyback program. All considered, though trading at a high price -to-earnings ratio, it’s still a TSX stock offering multi-year wins.

EIF

Exchange Income (TSX:EIF) is a textbook surprise sector winner, without the flashy themes but a durable, diversified business in aviation and industrial manufacturing. The TSX stock sits at the intersection of regional aviation and aerospace, as well as special manufacturing. While again not glamorous, many overlook it, despite cash flowing in from essential services.

And those essential services aren’t slowing down, with EIF slowly diversifying through acquisition. This includes Canadian North, expanding its footprint into remote Canadian markets. It has also seen record results during the second quarter of 2025, resulting in an increase in guidance for the year.

Analysts continue to believe it’s a strong buy thanks to its diversification, contractual stability in remote markets, capital upgrades, and growth through acquisitions. And with a monthly dividend, it’s a winner in any portfolio.

SJ

Finally we have Stella Jones (TSX:SJ), another less glamorous but essential TSX stock. The company is involved in pressured-treated wood, utility poles, and infrastructure wood products. This moat allows it to tie itself to essential uses like utilities and infrastructure rather than trends.

This strength was also seen during the second quarter of 2025, beating estimates. EPS hit $1.91, while revenue rose to $1 billion. Furthermore, it updated its 2025 sales to an estimated $3.5 billion. Furthermore, SJ stock trades at just 15 times earnings!

Analysts like the TSX stock for its infrastructure spending tailwinds, pricing and margin power, acquisition potential, resilience and, of course, value. While there can be some dips due to its cyclical nature, the bottom line is clear. SJ is a strong TSX stock that offers multi-year wins.

Bottom line

Overall, if you’re scanning the TSX today and looking for tomorrow’s long-term outperformers, don’t just focus on the biggest market caps. Instead, pay attention to those niche areas of the market. Ones that may not look exciting, but will lead you to exciting long-term gains.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Stella-Jones. The Motley Fool has a disclosure policy.

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