3 TSX Stocks to Buy Before the Next CPI Print

The next CPI print could move markets quickly, so these three Canadian businesses are built to handle inflation surprises.

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 22, 3:45 pm EDT

| More on: CCL.BCPTD

Key Points

Canadian Pacific Kansas City has hard-to-replace rail assets and pricing power, even if quarterly growth looks muted.
Alimentation Couche-Tard sells everyday essentials and is still growing earnings, which can hold up in tight budgets.
CCL Industries makes essential packaging and labels, and it’s still growing and raising dividends despite inflation pressures.

The next Consumer Price Index (CPI) print could shake the market fast. Inflation changes how investors think about interest rates, and interest rates affect almost everything. If inflation runs hotter than expected, investors may worry the Bank of Canada (BoC) will keep rates higher for longer.

That can pressure expensive growth stocks, rate-sensitive names, and companies with heavy debt. If inflation cools, investors may feel more comfortable buying steady earners again. So, before the next number lands, it makes sense to look at businesses with pricing power, durable demand, and enough strength to handle a few bumps.

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CP

Canadian Pacific Kansas City (TSX: CP) is a strong place to start. The railway is the only single-line rail network connecting Canada, the United States, and Mexico. It moves grain, potash, autos, energy products, intermodal containers, consumer goods, and industrial freight across North America. That gives investors exposure to three major economies through one stock.

That cross-border network is important when inflation and trade uncertainty keep companies focused on supply chains. Railways can also hold up better than many businesses because customers still need to move goods. CP stock isn’t immune to weak volumes or higher costs, but its network would be almost impossible to replicate.

In the first quarter of 2026, revenue came in at $3.701 billion, down 2% year over year. Reported operating income fell 4% to $1.258 billion, while core adjusted operating income dropped 4% to $1.368 billion. Diluted earnings per share (EPS) came in at $0.94, down 3%, while core adjusted diluted EPS reached $1.04, down 2%.

That’s not exciting growth, but quality stocks don’t always deliver perfect quarters. CP stock recently carried a market cap of around $105.6 billion, with a trailing price-to-earnings ratio of 26.6. So, no, it’s not cheap. But before a CPI print, investors may prefer quality and pricing power over bargain-bin risk.

ATD

Alimentation Couche-Tard (TSX: TD) offers a more defensive consumer angle. The company operates convenience stores and fuel retail locations under banners such as Circle K, Couche-Tard, and Ingo, selling everything from fuel and snacks to prepared food. That business can work well when inflation keeps household budgets tight.

The latest results supported the case. In the third quarter of fiscal 2026, net earnings attributable to shareholders rose to US$757.2 million from US$641.4 million a year earlier. Adjusted net earnings increased 17.2% to about US$751 million. Adjusted diluted EPS climbed 19.1% to US$0.81 from US$0.68.

Merchandise and service revenue reached US$5.8 billion in the quarter, up 8.7% year over year. That’s a strong number for a business many investors may view as mature. ATD recently traded around 20 times trailing earnings, which looks reasonable for a global convenience retailer with defensive traits. Risks remain, especially fuel margins, consumer weakness, and acquisition execution. Still, ATD looks built for uncertain inflation.

CCL

CCL Industries (TSX: CCL.B) rounds out the list. The company makes labels, specialty packaging, security products, cards, containers, and packaging materials for customers around the world. Its products show up across food, healthcare, personal care, chemicals, household goods, and consumer products.

Packaging can be a smart place to hide in an inflation-sensitive market. Companies still need labels and packaging even when consumers get cautious. That essential part of its business showed up in earnings. In the first quarter of 2026, CCL reported revenue of $1.94 billion, up 2.8% year over year. Net income came in at $204.9 million, down 1.2%, while EPS reached $1.18. The company also raised its dividend by 12.5% to $0.36, a strong vote of confidence from management.

CCL.B recently carried a market cap of around $15.1 billion and traded near 19 times earnings. That seems fair for a steady global packaging company with dividend growth. The risks include currency moves, input costs, and weaker customer volumes. Even so, CCL gives investors essential demand without chasing a risky inflation trade.

Bottom line

The next CPI print could move the TSX in either direction. That’s why investors may want stocks that can handle more than one outcome. CP stock offers rail pricing power and cross-border scale. Couche-Tard offers defensive retail and strong earnings growth. CCL offers global packaging demand and dividend growth. So before inflation grabs the market’s attention again, these three look worth watching.