Market observers and equity strategists expect the TSX to climb higher in 2026. They also suggest investing in mighty stocks that could potentially lead the next bull run. The three top picks also benefit from distinct megatrends: AI/data centres, rising gold prices, nuclear energy, and infrastructure.
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High-growth stock
Hammond Power Solutions (TSX: HPS.A) focuses on specialized transformers and is North America’s largest dry-type transformer manufacturer. The industrial stock is a back-to-back TSX30 winner, an annual ranking of the 30 top-performing publicly listed Canadian companies. HPS.A took the top spot in 2024 and ranked third in 2025
At $164.20 per share, the year-to-date gain and total positive return in three years are 29.5% and 794.2%, respectively. This growth stock also pays a modest 0.64% dividend. A repeat of the outstanding performance in the last two years is a strong possibility in 2026.
The $2 billion company leads the industry in technical design, manufacturing capabilities, and a broad range of dry-type transformers. Hammond has manufacturing facilities in Canada, the U.S., Mexico, and India, as well as nine regional warehouses in North America.
According to its CEO, Adrian Thomas, Hammond achieved remarkable growth through product innovation, expanding sales, and widening its distribution network. In the first three quarters of 2025, revenue and net earnings increased 11% and 19% year over year to $644.2 million and $57 million.
Market analysts’ bullish sentiment stems from Hammond’s revenue visibility and growth potential. Thomas provided no backlog amount but confirmed that it has increased by 27.7% since the beginning of the year. Most of the orders will be shipped in 2026. Meanwhile, the worldwide addressable market is US$65 billion.
Strong free cash flow profile
New Gold (TSX: NGD) ranked 11th in the 2025 TSX30 List, owing to the +394% dividend-adjusted share price performance over a three-year period. At $11.52 per share, current investors enjoy a market-beating year-to-date gain of 220.9%. Had you invested $7,000 at year-end 2024, your money would be worth $22,423.40 today.
This $8.9 billion intermediate gold mining company has two core producing assets in Canada. The first is the Rainy River mine (gold-silver) in Ontario, while the second is the New Afton mine (gold, silver, copper) in British Columbia. A key investment takeaway is the strong free cash flow (FCF) profile.
New Gold boasts a three-year cumulative FCF of approximately $2.2 billion. For the next three years, management projects a 38% increase in gold production and a 98% increase in copper production.
Unique competitive mix
AtkinsRéalis Group (TSX: ATRL), a $14.3 billion engineering services and nuclear company, is a 2025 TSX30 winner, too (rank 16). The stock’s three-year return is an impressive +334%. As of this writing, the share price is $85.20.
According to management, AtkinsRéalis caters primarily to clients in high-growth, high-quality end markets. The sectors include minerals & metals, defence, transportation, and nuclear. Moreover, the company has nuclear expertise to support the transition to low-carbon, affordable, and secure energy.
Its president and CEO, Ian L. Edwards, said, “The combination of our Engineering Services and Nuclear businesses provides us with a unique competitive mix, which we believe should continue to enable strong growth.”
Powerhouse combination
Hammond Power Solutions, New Gold, and AtkinsRéalis should be a powerhouse combination for forward-looking investors. You’d have a pair of high-growth stocks and a nuclear energy expert.
