The TSX Is Rotating: 3 Stocks to Buy Before the Next Shift

Soft growth can spark a TSX rotation into real assets and steady cash flow – and these three stocks could be early beneficiaries.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 5, 11:45 am EDT

| More on: BLXDPMLUN

Key Points

Lundin Mining gives you copper-heavy exposure to electrification, but profits will swing with copper prices.
Boralex offers contracted renewable power and storage growth, though higher interest rates can squeeze returns.
DPM Metals adds gold-backed earnings and growth projects, with performance tied to commodity prices and execution.

The TSX never stands still for long. When growth stays soft, investors often rotate away from the most expensive stories and into stocks with real earnings, hard assets, steady cash flow, or exposure to long-term demand. The trick is to buy before the next shift becomes obvious. That often means looking at companies tied to copper, renewable power, gold, and essential infrastructure. These areas can still attract capital even when the broader economy feels slow, as the themes behind them don’t disappear with one weak quarter.

a sign flashes global stock data — Source: Getty Images

LUN

Lundin Mining (TSX: LUN) could fit that rotation well. The company produces copper, zinc, gold, and nickel from mines in the Americas, with copper as the main attraction. That gives Lundin stock a clean tie to electrification, grid upgrades, data centres, and industrial spending. Over the last year, Lundin stock simplified its portfolio by selling its European Neves-Corvo and Zinkgruvan mines, sharpening its focus on copper-heavy operations. That kind of move can help investors understand the story faster, especially when copper prices stay firm.

The latest earnings were strong. In the fourth quarter of 2025, Lundin stock reported revenue of US$1.4 billion, helped by a realized copper price of US$5.89 per pound. Consolidated copper production reached 87,032 tonnes, while net earnings from continuing operations came in at US$912.3 million. The stock recently traded at a price-to-earnings (P/E) ratio near 20, so it’s not screaming cheap after a strong run. Plus the risk is clear: copper prices can swing hard, and mining costs can surprise investors. Still, if the TSX rotates toward hard assets and industrial metals, Lundin stock has the right exposure at the right time.

BLX

Boralex (TSX: BLX) is a Quebec-based company that develops, builds, and operates renewable power and storage assets across Canada, France, the United States, and the United Kingdom. It focuses on wind, solar, hydro, and battery storage. Over the last year, Boralex commissioned major projects, including Canadian battery storage assets and new renewable projects abroad. It also continued building partnerships with Indigenous communities.

Its 2025 results were mixed but still useful for long-term investors. Boralex reported net earnings of $33 million for the year, with fourth-quarter net earnings of $26 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $178 million in the quarter and $552 million for the full year. Production rose 18% in the fourth quarter from the year before, helped by newly commissioned sites and better wind conditions. The valuation looks more reasonable than it did during the clean-energy boom, though financing costs remain a pressure point. That’s the main risk. Renewable projects need capital, and higher interest rates can hurt. But if the next TSX shift favours power demand, storage, and contracted cash flow, Boralex could get another look.

DPM

DPM Metals (TSX: DPM) produces gold and copper, with operations in Bulgaria, Serbia, and other growth projects. Gold has stayed front and centre as investors worry about inflation, debt, currency moves, and geopolitical tension. Dundee also changed its name to DPM Metals, which better reflects its broader growth ambitions beyond the old Dundee Precious Metals label. Over the last year, stronger commodity prices and operating momentum helped the stock gain serious attention.

The earnings tell the story. In 2025, DPM generated revenue of about US$950 million, up roughly 57% from the year before. Earnings rose to about US$369 million, also up sharply. Fourth-quarter results were especially strong, helped by higher realized gold prices and solid production. The stock recently traded around 16 on a trailing earnings basis, which doesn’t look excessive if gold prices stay elevated and growth projects advance. Risks still matter. Mine execution, country exposure, and commodity prices can all create sharp moves. But DPM has growth, gold exposure, and improving scale, which could make it a strong rotation winner.

Bottom line

Lundin stock, Boralex, and DPM Metals all bring different tools for a softer-growth market. Lundin stock offers copper and hard-asset leverage. Boralex offers renewable power and storage exposure. DPM offers gold strength with growth potential. None are risk-free, but each gives investors a clear reason to buy before the TSX makes its next big move.