Even though the TSX Index is soaring near all-time highs, there are plenty of stocks that have not enjoyed the rise. This creates great opportunities for investors with longer investment horizons to start some new positions.
Many stocks that have been great compounders for shareholders are down. Here are three that I would look to add with $3,000 in November.
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A utility-like waste stock with a great record
For a garbage stock, Waste Connections (TSX:WCN) has put up some good long-term returns. Shareholders have earned a 72% (11.5% compounded annual growth rate (CAGR)) total return over the past five years and a 320% total return (16.4% CAGR) over the past 10 years.
Waste removal and disposal are essential services. Factors like population growth and urbanization should continue to push waste volumes higher.
Entrenched waste providers like Waste Connections, who have established disposal infrastructure, should benefit from both volume growth and pricing power over time.
Waste Connection stock is down 4% this year. While it is not the cheapest stock you will find, its forward price-to-earnings ratio of 30 is the lowest it has been since 2023 and below its average of 32. This is a well-managed company with utility-like qualities. For a low-risk, steady compounder, it looks attractive today.
A diversified services stock with ample room to grow
Colliers International Group (TSX:CIGI) has been a good compounder for several decades. While its stock is up 8% year to date, it is down 6% in the past three months. Yet, it has a good record of creating shareholder value. CIGI stock is up 98% in the past five years and 276% in the past 10 years.
Colliers has an acclaimed global real estate brand. Even though brokerage is an important part of its business, over 70% of its earnings now come from less cyclical, recurring services businesses.
In fact, it has growing franchises in engineering and investment management today. These segments are providing substantive growth arenas, particularly the engineering segment, which has a large market to consolidate.
The real estate market has been suppressed for a few years due to high interest rates. However, that trend looks to be reversing. Colliers is seeing an uptick in transaction activity. When you combine that along with good double-digit growth in its other segments, Colliers could be due for attractive returns in the coming years.
Colliers is managed by its founder (and a big shareholder), Jay Hennick. I have found that when you bet on these great owner operators, you tend to do very well with a long enough time horizon.
A high-quality real estate compounder
Another high quality real estate stock is Mainstreet Equity (TSX:MEQ). Like the stocks above, it has delivered impressive long-term returns. MEQ stock is up 172% in the past five years and 476% in the past 10 years.
Mainstreet operates and acquires apartments across Western Canada. Its portfolio of properties tend to be older. However, their rents are affordable (and cater to a wide population) and have rental upside from smart value-accretive renovations.
Unlike a real estate investment trust, Mainstreet is a corporation. Consequently, it can retain most of its capital to grow its portfolio. It does pay a modest dividend, but the remaining capital is used to re-invest into acquiring or renovating apartments.
The Canadian apartment market is a little depressed right now. Mainstreet is likely to be opportunistic and aggressively pursue acquisitions.
Mainstreet’s stock is down 12% in 2025. Its stock is trading at a reasonable valuation. It’s a great stock to buy in November if you have a long investment horizon in front of you.
