The S&P/TSX Composite Index had a stellar start to 2026, and the benchmark index for the Canadian stock market has seen several new all-time highs since. However, there has been and continues to be a lot of market volatility. Escalating conflicts in the Middle East and their consequences continue to riddle global equity markets with uncertainty.
The market is in a state of constant change, with developments in the US-Iran war situation pulling markets down or propping them up. As uncertainty and market pullbacks make investors nervous, seasoned stock market investors might consider it an excellent buying opportunity.
When quality businesses lose momentum alongside the broader market, savvier investors get a chance to find bargains through potentially undervalued stocks. Today, I will discuss two resilient TSX stocks that I believe are too attractively priced to ignore and could deliver substantial returns in the coming years.
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Dollarama
Dollarama Inc. (TSX: DOL) is a $50.9 billion market-cap stock that can be an excellent pick right now. The discount retailer offers goods that its consumers need at a lower and fixed price point. It benefits from an efficient direct-sourcing model that eliminates intermediaries, lowering acquisition costs. With costs lower for the business, it can afford to offer goods at more affordable prices to consumers.
The company generates healthy same-store sales growth across varying economic cycles, especially during downturns. When people look to cut costs, they need alternatives like Dollarama. The business model has allowed the stock to deliver substantial growth over the years. The company’s disciplined expansion strategy has also allowed it to sustain its ability to provide solid returns to investors.
As of this writing, Dollarama stock trades for $186.89 per share. Down by around 11% from its 52-week high. It might be a good time to invest in its shares.
Waste Connections
Waste Connections Inc. (TSX: WCN) is a stock that exemplifies the saying about one person’s trash being another person’s treasure. The $55.4 billion market-cap firm is essentially a waste collection, transfer, and disposal business. Headquartered in Woodbridge, Waste Connections is a leading non-hazardous waste management company serving clients across Canada and the US.
While there are other players in the industry, competition is not strong, letting Waste Connections enjoy industry-leading margins and solid pricing power. Despite the broader issues in the economy, WCN stock has maintained a strong balance sheet and boasts solid growth prospects. Its disciplined acquisitions and organic expansions have made this waste management company a reliable investment for many Canadians.
As of this writing, Waste Connections stock trades for $217.03 per share. Down by almost 18% from its 52-week high, it is too attractively priced to ignore right now.
Foolish takeaway
While the past performance is not a guaranteed indicator of future performance, it paints a clear enough picture of what to expect. When the market is uncertain, companies with resilient business models are better equipped to handle and overcome the devastation that a market pullback causes.
Businesses well-positioned to generate revenue can protect your investment capital and deliver far better returns in the long run. Dollarama offers a crucial alternative to its customers through its fixed and low-price-point products to help them save costs. Waste Connections offers a service that is necessary regardless of the state of the economy.
Against this backdrop, I think DOL stock and WCN stock can be excellent holdings to add to your self-directed portfolio.
