2026 is proving to be a difficult year to gauge how Canadian stocks will act. Software stocks are getting destroyed and that is trickling down even into non-tech stocks.
If you are worried about AI disruption and want to look for gains outside of software, here are three pretty boring Canadian stocks that still could be set to surge in the year ahead.
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A Canadian real estate stock
The first Canadian stock that increasingly looks interesting for 2026 is Chartwell Retirement Residences (TSX: CSH.UN). With a market cap of $6.4 billion, it is the largest provider of retirement communities in Canada.
Canada is about to be hit with a wave of aging baby boomers. They want independence, but don’t want the burden of a large home. Likewise, retirement can be lonely, so community and care options are vital.
Chartwell’s communities fulfill many of these needs at once. The good news for Chartwell is that demand is starting to outpace supply. Current senior’s unit demand is expected to double in the next 20 years. Yet, new supply is hardly keeping up. Chartwell has 95% occupancy today.
That all bodes favourably in terms of pricing power and an opportunity to develop new units. Right now, analysts are targeting over 15% cash flow per unit growth in 2026 and 12% in 2027.
If it can come close to these numbers, there could still be considerable upside in the stock. It pays a 2.9% distribution yield, so you get paid to find out.
A top real estate services stock
FirstService (TSX: FSV) has been a quality compounder stock for many years. However, this stock is down 17% in the past year. It is trading at its lowest valuation since about 2018 (other than the 2020 crash).
FirstService is a significant provider of HOA, condo, and apartment management services across Canada and the U.S. This is a nice business because it tends to be recurring and generates attractive cash flows. Management has used this to acquire various property-related services that include painting, closet design, roofing, fire protection, and restoration.
With limited major catastrophic storm events in 2025, its large restoration business was a drag on results. Given the rising frequency of storm events, that was likely a blip. FirstService should start to see a nice recovery in business in the second half of 2026.
The company continues to strategically deploy capital into attractive opportunities. While the stock is down today, it is a great time to add this stock for a longer-term position.
A Canadian fintech stock
Propel Holdings (TSX: PRL) is another Canadian stock that could be due for a rally. Now, this stock is definitely the most volatile of this mix. This can go for downside as well as upside, so position the size accordingly.
Propel offers modest-sized consumer loans to the subprime market. It uses a proprietary AI lending platform that can be scaled across geography. It tends to use bank partners, but it also offers loans directly online.
Propel has been growing by a near 40% rate for the past three years. While it still has ample growth in the U.S., it just made an acquisition in the U.K. that could fuel another growth avenue.
With a price-to-earnings ratio of eight and a 3.5% yield, this Canadian stock is attractive on a growth-to-value basis. It has its risks, but it could also offer an attractive reward to contrarian investors right now.
