Those who have stayed invested during the recent bull market rally have outperformed those who have stayed in cash or held too much exposure to fixed income and other assets. That’s blatantly obvious to most investors who have at least some inkling of how the market has performed in recent years.
Previous pandemic-related catalysts have given way to artificial intelligence (AI) as the key growth driver of choice. That said, I think a number of more traditional companies could have even more upside in the years to come. Here are three stocks I think could crush the market in 2026 and beyond.
Fortis
One company with exposure to the most important tech trends of our time, but almost completely removed from the valuation issues plaguing this sector, Fortis (TSX:FTS) remains a top pick of mine as a Canadian stock that could crush the market in 2026 and beyond.
That’s because this utility giant benefits from many of the same underlying growth trends as its largely overvalued tech peers do, but carries a much more reasonable multiple and a rock-solid balance sheet.
Providing electric and natural gas services to millions of customers in North America and the Caribbean, Fortis is a great option for investors looking to benefit from the AI mega trend underway, while also benefiting from a rock-solid core business that has provided investors with more than 50 consecutive years of dividend increases.
With a dividend yield of 3.6% and continued likely dividend growth in the 7% range per year, this is a top dividend stock for those seeking reliable and consistent double-digit total returns for many years to come.
Restaurant Brands
For those looking for a much more defensive pick in this current market backdrop, Restaurant Brands (TSX:QSR) is an excellent choice to consider.
Shares of the fast food giant have trended consistently higher in recent quarters, as the company continues to post strong results. Bolstered by a world-class assortment of banners (from Tim Horton’s to Burger King, Popeyes, and others), Restaurant Brands provides the sort of low-cost dining options away from home that consumers are likely to increasingly transition toward, if we are due for the sort of economic pain some suggest could be coming.
As a way to benefit from rising inflation and continued wealth disparities among the wealthiest and the lower and middle classes of society, Restaurant Brands and its 3.5% dividend yield look attractive, particularly for those who think interest rates are likely to come down from here.
Shopify
Now moving to a true Canadian tech pick, but a company I’d argue that hasn’t benefited from the widespread hype which has driven so many other companies to all-time highs. Trading near its own all-time high, Shopify (TSX:SHOP) is one top Canadian tech stock I think could have more room to run both in terms of multiple expansion and accelerating growth.
The company’s core underlying growth stems from its e-commerce platform, which allows businesses of all sizes to transition toward online sales. With more and more retailers understanding that a big piece of the consumer decision-making process includes shopping online (for sizes, availability, and other key information), Shopify is a stock that should benefit from these structural growth trends over time.
These trends have been highlighted by recent sales data this holiday season, in which e-commerce sales grew at a double-digit year-over-year clip, while traditional brick-and-mortar purchases did not keep up with inflation.
Those holding a similar base case thesis for where growth will ultimately be headed may look at Shopify’s multiple and find a way to buy in. This is a top stock worth buying on dips, though I’d still consider adding to positions even at current levels.
