Here Are My Top 3 TSX Stocks to Buy Right Now

Are you looking for some new investment ideas for 2026? Here are three of my top TSX stocks to buy right now.

| More on:
Key Points
  • AI‑driven selloff has created contrarian buying opportunities on the TSX.
  • Top picks — Constellation (CSU): ~14× FCF (~7% FCF yield); Colliers (CIGI): recurring growth (~15× earnings); Calian (CGY): defence‑focused, double‑digit growth.
  • Looking for other top stocks for 2026. These five top stocks could provide great future returns. 
AI‑driven selloff has created contrarian buying opportunities on the TSX.

2026 has already proved to be an interesting year for TSX stocks. Artificial intelligence (AI) concerns have pushed software stocks down even further than they were pushed in 2025. Likewise, selling has moved to other sectors, such as professional services.

Frankly, I think this trade has been overhyped in many ways. For contrarian investors, it presents attractive buying opportunities. Below are three top TSX stocks to buy right now. Two of these stocks are beaten down due to the AI concerns, and one should prosper regardless of what AI does.

Start line on the highway

Source: Getty Images

A beaten-up TSX software stock

Constellation Software (TSX: CSU) is down 51% in the past year. For current shareholders, it has been a pretty tough time. However, for new shareholders, this TSX stock could be an excellent buying opportunity.

Constellation is trading for 14 times free cash flow and a 7% free cash flow yield. The last time it was this cheap was 10 years ago.

Certainly, AI could be a threat. However, it could also be an opportunity. Constellation operates over 1,000 business units that cater to niche industries and sector uses. It is heavily embedded with customers. Who is to say it cannot use AI to further improve its software platforms, further entrench itself, or even expand into new verticals?

Secondly, the AI drop could provide meaningful buying opportunities. Software is no longer in vogue. All the private equity players that have heavily invested in the sector may have to unload these unfavourable holdings. With a strong balance sheet and a great operating platform, Constellation could considerably accelerate its acquisition program.

While the market is only focusing on the negatives, a contrarian can pick up one of Canada’s best businesses at a very attractive valuation.

A beaten-down diversified services provider

Another TSX stock beaten down by AI is Colliers International Group (TSX: CIGI). This TSX stock is down 23% this year. Colliers provides real estate services, engineering/project management, and investment management.

These are not commoditized businesses that an AI agent can replicate or replace. These services require relationships, expertise, certifications, and experience. Today, over 70% of Collier’s income is recurring.

Over the past five years, Colliers has been growing at a 15% compounded annual rate. A mix of smart acquisitions and solid organic growth has nearly doubled its business in that time. It is targeting double-digit growth in 2026 as well.

At 15 times earnings, Colliers is trading at a very attractive price-to-growth rate. For a high-quality TSX stock, Colliers looks like a bargain right now.

A top TSX defence stock

If you want a TSX stock that is agnostic of AI, Calian Group (TSX: CGY) should be on your radar. This stock is benefiting from the rising defence spending that is going on in NATO and Canada.

Over 50% of Calian’s business is focused on defence. It is a major supplier of healthcare, training, and satcom services to the Canadian military. Canada has underinvested for years in the military. It is finally starting to catch up after announcing a commitment to hit NATO spending targets.

Calian has the expertise and relationships to win more than its fair share of government spending in the area. It is targeting double-digit growth in 2026. Recent quarterly results indicate that it could hit its $100 million earnings before interest, tax, depreciation, and amortization target in the next year or two.

Even though this TSX stock is up 36% in 2026, its valuation is still not demanding, given that its growth story might just be starting again.

Fool contributor Robin Brown has positions in Calian Group, Colliers International Group, and Constellation Software. The Motley Fool has positions in and recommends Colliers International Group. The Motley Fool recommends Calian Group and Constellation Software. The Motley Fool has a disclosure policy.

More on Investing

dividend stocks are a good way to earn passive income
Dividend Stocks

This Dividend Stock Is One I’ll Never Sell — Here’s Why

Fortis (TSX:FTS) stock stands out as a dividend-paying, sleep-easy kind of name to buy and never sell.

Read more »

rising arrow with flames
Dividend Stocks

Income Investors: 3 Dividend Stocks That Keep Raising Their Payouts

These stocks have delivered annual dividend growth for decades.

Read more »

oil pumps at sunset
Energy Stocks

Why Canadian Natural Resources Could Be a Huge Winner as Oil Prices Spike

CNQ stock offers rare leverage to rising oil prices, ultra low costs, and a 26-year dividend streak.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Crude Oil Is Soaring, and Here’s How Canadian Energy Investors Can Play it

Crude oil is back above US$100 per barrel, and these two top Canadian energy stocks could give investors a great…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Investing

I’m Using These 3 Canadian Stocks as My TFSA Cornerstones

With resilient business models, consistent financial performance, and compelling long-term growth prospects, these three Canadian stocks could make strong cornerstone…

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

The Market Won’t Wait for You to Feel Ready: Here’s Where I’d Put $1,000 Today

Put $1,000 to work now instead of waiting for perfect timing, using Nutrien as a starter stock you can add…

Read more »

dividend growth for passive income
Investing

TFSA Power Picks: 2 Stocks to Supercharge Your Tax-Free Growth

Given their higher growth prospects and reasonable valuations, these two high-growth stocks can supercharge your tax-free growth.

Read more »

ETFs can contain investments such as stocks
Tech Stocks

Your TFSA Owns 3 ETFs: It May Still Be 1 Big Technology Bet

Three ETFs can still overlap heavily, leaving you with one big U.S. mega-cap tech bet instead of true diversification.

Read more »