Prediction: This Under-the-Radar TSX Stock Will Outperform

Fiera Capital is a beaten-down TSX asset manager with improving margins, solid cash flow, and a big dividend that could rebound if sentiment turns.

Key Points
  • Fiera is a cash-generating asset manager that’s rebuilding trust after cutting its dividend in 2025.
  • Even with revenue down, cost control lifted margins, and the stock trades at a low forward earnings multiple.
  • If outflows ease and markets improve, its high dividend and operating leverage could drive an outsized recovery.

Investors likely want one thing when looking at the markets: predicting what’s next. Granted, that’s next to impossible unless you’re doing some highly illegal stuff. However, there are themes and clues that can help us identify under-the-radar TSX stocks that could very well outperform. 

That’s why today, we’re going to look at one offering with low expectations, modest valuation, and cash flow that’s holding up. Plus, management with a clear path to make improvements. So, without further ado, let’s get into it.

3 colorful arrows racing straight up on a black background.

Source: Getty Images

FSZ

Fiera Capital (TSX: FSZ) is a Montreal-based independent asset manager for institutional clients, financial intermediaries, private wealth clients, and investors across public and private markets. Yet its biggest issue over the last year has been investor patience. Fiera stock has also been working through a reset, cutting its dividend in 2025, which hurt sentiment but made the payout more realistic.

That said, Fiera stock completed a $100 million debenture refinancing with Fonds de solidarité FTQ in May 2026, which replaced a 6% debenture due in 2027. Private market assets rose 0.9% quarter over quarter to $22.2 billion and were up 5.2% year over year, even as total assets slipped.

Into earnings

Now, let’s dive deeper into those numbers. Q1 2026 wasn’t perfect, which helps explain why the stock still sits under the radar. Revenue fell 5.9% year over year to $153.3 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) slipped only 1.6% to $42.7 million, showing cost cuts helped absorb the revenue pressure. Adjusted net earnings came in at $23.5 million, down 7.5% from Q1 2025.

Not great on the surface, but adjusted EBITDA margin reached 27.9%, up 130 basis points from the same quarter last year. That’s why valuation might be interesting for Fiera stock. It trades at 6.8 times forward earnings, offering a 7.8% dividend yield as well. While shares have traded down 10% in the last year, this could be an ideal time to look at a turnaround.

Looking ahead

So, what should investors watch? Fiera stock’s outperform case depends on three things: better markets, lower outflows, and continued margin control. Asset managers can rebound quickly when assets under management (AUM) stabilize because fee revenue can recover without the company needing to rebuild the whole business. Yet Fiera stock doesn’t need a miracle, just calmer markets, stronger private-markets growth, and better organic flows.

In short, Fiera stock could outperform if investors start paying more attention to the good parts: $160.2 billion in AUM, improving margins, private-markets growth, stronger free cash flow, and a dividend yield near 8%. Yes, it’s not risk-free, but upside comes from the gap between investor pessimism and the company’s still-profitable, cash-generating platform.

Bottom line

Fiera stock won’t attract the same attention as a hot tech stock or a booming miner. Yet that’s exactly why it belongs in an under-the-radar article. And meanwhile, investors can still grab a solid dividend even with $7,000.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
FSZ$5.531265$0.44$556.60Quarterly$6,995.45

From there, if markets settle and Fiera stock keeps improving margins, this company could surprise investors who stopped watching too soon.

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

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