4 TSX Stocks Worth Considering as the Market Shifts Back Toward Value

Value investing is making a comeback in 2026 – and these TSX stocks fit the trend.

Key Points
  • Great-West Lifeco (TSX:GWO) is benefiting from strong earnings growth and rising return on equity.
  • Canadian National Railway (TSX:CNR) remains a key player in North America’s supply chain.
  • RioCan REIT (TSX:REI.UN) and Pembina Pipeline (TSX:PPL) offer attractive yields with stable cash flows.

Markets have a habit of rotating. One year, it’s all about high-growth stocks, and the next, investors start leaning back toward companies with stable earnings and reliable cash flows. That shift usually reflects changing economic conditions and a growing preference for stability amid growing geopolitical tensions in 2026.

For long-term investors, this shift makes complete sense as value stocks often come with strong fundamentals, consistent dividends, and the potential for steady growth. In this article, I’ll highlight four TSX stocks that stand out as the market leans back toward value.

money goes up and down in balance

Source: Getty Images

A financial giant benefiting from steady demand

Within the financial sector, Great-West Lifeco (TSX: GWO) stands out as a top stock that combines scale with steady demand, making it a natural fit as investors tilt toward more stable, income-generating businesses. Through brands like Canada Life, Empower, and Irish Life, it serves customers across Canada, the United States, and Europe.

After climbing 37% over the last year, GWO stock currently trades at $72.88 with a market cap of $65.9 billion. It also offers a 3.7% dividend yield.

The company’s Empower division has been a major growth driver in recent quarters as it delivered record earnings of $1.1 billion in 2025. This growth was supported by strong client acquisition and a 17% year-over-year (YoY) rise in its base earnings in the fourth quarter. Its return on equity improved to 20.1%, reflecting solid financial strength. Given these solid numbers, GWO stock looks well-positioned to remain a stable performer in a shifting market environment.

A transportation stock with long-term relevance

In the industrial sector, Canadian National Railway (TSX: CNR) continues to showcase why essential infrastructure businesses tend to hold their ground during market rotations. It plays a critical role in North America’s supply chain, transporting goods across an extensive rail network and handling over 300 million tons of cargo each year.

CNR stock currently trades at $147.91 with a market cap of $91 billion and offers a 2.5% dividend yield. Over the last six months, its shares have risen 14%.

What makes CNR stand out is its diversified operations. From intermodal logistics to specialized freight services, it supports a wide range of industries. This diversity helps maintain stability even during economic shifts.

A real estate stock with steady income potential

RioCan Real Estate Investment Trust (TSX: REI.UN) also offers a dependable income stream backed by a portfolio of retail-focused and mixed-use properties across Canada. This Toronto-headquartered real estate investment trust (REIT) is well known for its strong tenant base, which includes essential services like grocery stores and pharmacies.

After jumping 23% for the last 12 months, RioCan stock now trades at $21.28 with a market cap of $6.2 billion and provides a 5.4% dividend yield, paid monthly.

In the fourth quarter of 2025, RioCan reported same-property net operating income growth of 4.5%. The REIT’s leasing spreads remained strong with the help of demand for well-located retail spaces. The company has also been actively recycling capital and repurchasing units to enhance value, which should support its long-term value creation strategy.

An energy infrastructure stock with stable cash flows

Pembina Pipeline (TSX: PPL) rounds out this list with its focus on energy transportation and midstream services. It operates pipelines, processing facilities, and export terminals across North America.

Up 18% year-to-date, PPL stock currently trades at $61.77 with a market cap of $36 billion and offers a 4.6% dividend yield.

In 2025, Pembina reported record volumes of 3.7 million barrels of oil equivalent per day. It’s also investing in expansion projects worth $425 million to support growing demand. Moreover, its involvement in the Cedar LNG project further strengthens its long-term growth outlook.

Fool contributor Jitendra Parashar has positions in Pembina Pipeline. The Motley Fool recommends Canadian National Railway and Pembina Pipeline. The Motley Fool has a disclosure policy.

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