3 Top TSX Stocks to Buy if You Want Stability and Growth

These three TSX names aim to balance “sleep-at-night” qualities with enough growth levers to keep returns compounding.

Key Points
  • Gildan is scaling up after the Hanes deal and raising guidance, but integration execution is the key risk.
  • Spin Master looks cheaper after a messy quarter and impairment, and a rebound depends on consumer demand stabilizing.
  • Magna offers global auto-supply scale at a modest valuation, yet it still relies on vehicle production staying healthy.

If you want stability and growth, it helps to look for businesses that don’t need a perfect economy to keep moving. The sweet spot often sits in companies with durable brands, steady cash flow, and enough room to keep growing earnings over time. That can mean a dependable manufacturer, a consumer brand with staying power, or an industrial giant that keeps winning work even when headlines get noisy.

cookies stack up for growing profit

Source: Getty Images

GIL

Gildan Activewear (TSX: GIL), a Montreal-based apparel maker, closed its HanesBrands acquisition in December 2025, a deal that gives it more scale in basics like T-shirts, underwear, and socks. In late February 2026, Gildan reported record fourth-quarter net sales from continuing operations of US$1.1 billion, up 31.3% year over year, helped by the Hanes contribution. Adjusted diluted earnings per share (EPS) from continuing operations reached a record US$0.96, up 15.7%, while the company also lifted its dividend by 10%.

That’s a nice mix for investors who want both ballast and upside. Gildan expects 2026 revenue of US$6 billion to US$6.2 billion and adjusted diluted EPS of US$4.20 to US$4.40, with management saying integration is running ahead of plan. It also raised its targeted run-rate synergies from the Hanes deal, which adds another growth lever. The risk, of course, sits in integration. Big deals don’t always stay tidy.

TOY

Spin Master (TSX: TOY) fits a stability-and-growth list for a different reason. It owns brands and franchises that families already know, from PAW Patrol to Melissa & Doug, and it also has exposure to digital games and entertainment. That kind of mix can smooth out some bumps. Still, the latest quarter wasn’t pretty on the surface. In its March 2026 results, Spin Master reported fourth-quarter revenue of US$618.2 million, down 4.8%, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at US$111.3 million and adjusted diluted EPS landed at US$0.41. A large non-cash impairment tied to Melissa & Doug weighed on reported results.

Yet this is where the growth part starts to get interesting. The impairment doesn’t mean the whole company broke. It reflects weaker projections for one unit amid trade-policy pressure and macro headwinds. Meanwhile, the stock looks much cheaper on forward expectations than on trailing numbers. That suggests investors still see room for a rebound if management steadies toy sales and keeps expanding higher-margin digital and entertainment businesses. The main risk is simple: if consumer spending weakens further, toys can stay under pressure.

MG

Magna International (TSX: MG) brings the most industrial version of stability here. It’s one of the world’s largest auto parts suppliers, and that scale matters. Even when vehicle markets wobble, Magna stock still sits deep inside the global supply chain. In February 2026, it posted fourth-quarter sales of US$10.8 billion, up 2%, while adjusted diluted EPS rose to US$2.18 from US$1.69 a year earlier. It also generated strong free cash flow in 2025 and projected more profit growth in 2026. That’s not flashy, just solid.

What makes Magna stock stand out now is valuation. For a company guiding for 2026 sales of US$41.9 billion to US$43.5 billion and adjusted diluted EPS of US$6.25 to US$7.25, it looks fairly modest. Magna stock also kept finding ways to protect margins through operational improvements, even with tariffs and auto demand worries hanging around. The catch is obvious: this business still depends on auto production, and that can turn quickly if the global economy slows.

Bottom line

If you want TSX stocks that don’t force you to choose between sleeping well and growing your money, these three deserve a look. Gildan offers brand power and integration upside. Spin Master offers recovery potential at a lower forward valuation. Magna stock offers global scale and cheap earnings. None are risk-free, but together show that stability and growth can still live in the same portfolio.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Magna International. The Motley Fool has a disclosure policy.

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