In this piece, we’ll check in on a rather stealthy group of stocks that have quietly beaten the TSX Index so far this year. And while much of the focus surrounds the top AI plays out there, I think that there might be more opportunities in the proven performers that fewer people seem to talk about. Undoubtedly, it’s quite rare to get a momentum stock that’s also underappreciated. But in the case of the following pair of stocks, I think that they’re worth adding to the radar as they look to top the TSX Index quietly for yet another year.
Given the price of admission and the timely drivers behind them, I think they’re well-positioned to keep thriving, even in today’s seemingly frothy stock market, one which some experts suggest is overdue for a correction at some point. Even if a correction were to hit, the following name, I think, makes for a great long-term hold that might be worth adding to on further dips over the next 18 months. Let’s jump right into the names that I think are rather “quiet” winners likely to continue their ways, not only in 2026, but perhaps for a few years to come.
Loblaw
Loblaw (TSX:L) is a dominant Canadian grocer that’s had a magnificent run in these past five years, where it’s gained close to 250%. Year to date, the retailer behind such names as Superstore, No Frills, and Loblaw Town Market, as well as private labels including President’s Choice and No Name brand, is showing no signs of slowing down, beating the TSX Index by just over a percentage point.
Undoubtedly, it’s getting close to call, but as the grocer looks to expand its store count to meet demand for discounts and better value, I’m inclined to bet that Loblaw will keep beating the TSX Index. Add store modernization and the incorporation of new technologies, such as AI and autonomous trucks, and I’m inclined to think margins have room to the upside.
Add the loyalty program and reputation for offering competitive prices on groceries and other everyday staples into the equation, and I view L stock as one of the best defensive growth stars in the Canadian market. Loblaw is shining bright, and as it doubles down on discount brands, the sky could be the limit, especially if Canada’s economy hits the brakes.
In short, Loblaw is more than just a grocer. It’s a tech-savvy retailer that knows what consumers want (value), and its dominance spans beyond just groceries. Despite the hot gains, shares aren’t expensive at 28.5 times trailing price to earnings (P/E), at least in my view. If it’s self-driving trucks and other AI initiatives pay off, I wouldn’t be surprised if shares break out in a big way in the new year.
Aritzia
Aritzia (TSX:ATZ) is another Canadian company that’s worthy of a watchlist. The women’s clothing retailer is up 80% so far this year, and with momentum going strong, as the firm thrives in spite of tariffs, I think there’s more reason to get behind the $11.1 billion mid-cap’s expansion. Of course, fashion is a tough business to be in, given the colossal losers and winners fighting for consumer dollars.
Either way, Aritzia has been a winner, and it could keep taking share as the expansion plan and swelling brand affinity pave the way for more growth in the new year. The only thing is shares aren’t cheap at over 40 times trailing P/E. But given how much runway the still-small retail growth icon is, I’d say the premium is fitting.
