Canadian investors received valuable insights this week as analysts revealed their top TSX stock picks for 2026, with particular focus on retail giant Dollarama Inc. and emerging opportunities in artificial intelligence cybersecurity.
Couche-Tard Gains Momentum After Strong Earnings
Alimentation Couche-Tard Inc. enjoyed a significant market boost this week, with shares climbing just over eight per cent following well-received earnings results. The Laval-based global convenience store operator saw eight of eighteen tracking analysts increase their price targets, ranging from $80 to $90 per share.
RBC Capital Market analyst Irene Nattel maintained her bullish $91 target price, noting the company's disciplined capital allocation and ability to navigate challenging market conditions. Despite the recent positive movement, Couche-Tard shares remain down nearly four per cent for the year, largely due to the failed acquisition attempt of 7-Eleven owner Seven & i Holdings Co.
Big Bank Earnings Season Approaches
Canada's banking sector has delivered impressive performance this year, with the S&P/TSX composite bank index surging 32 per cent year-to-date, outpacing the broader index's 27 per cent gain. As the Big Six banks prepare to report earnings starting December 2, Scotia Capital Markets analysts Mike Rizvanovic and Felix Fang anticipate another strong quarter.
The analysts highlighted Canadian Imperial Bank of Commerce as their most optimistic pick, maintaining a $123 price target while shares traded around $120. They also increased their target for National Bank of Canada to $166, reflecting expected gains from the Canadian Western Bank acquisition.
Dollarama: A Cornerstone Investment
TD Cowen analysts are positioning Dollarama Inc. as a essential long-term portfolio holding ahead of the company's December 11 earnings report. Analysts Brian Morrison and Andrew Lopez expect the discount retailer to raise its fiscal 2026 guidance, driven by strength in both Canadian and Latin American markets and increasing same-store sales among budget-conscious consumers.
While TD anticipates some moderation in the fourth quarter of 2026 due to higher costs, the firm maintains a $210 price target on Dollarama, with shares currently trading near $200. Investors will be watching closely for updates on the company's expansion into Mexico and Australia.
AI Cybersecurity Presents Investment Opportunities
The rapid advancement of artificial intelligence has created new cybersecurity vulnerabilities, and according to JPMorgan Chase & Co., this presents significant investment potential. The firm identified several companies positioned to benefit from increased federal spending on cybersecurity, including Celebrite DI Ltd., Tenable Holdings Inc., Crowdstrike Holdings Inc., and Zscaler Inc.
In the consolidation space, JPMorgan favors Crowdstrike, Palo Alto Networks Inc., and Zscaler, while naming SailPoint Inc. as their top identity security pick. For investors interested in cyber insurance, Beazley PLC appears well-positioned to deliver strong returns even in a slowing market.
Quantum computing innovation also offers potential, with analysts recommending monitoring established technology firms like International Business Machines Corp., Cisco Systems Inc., and Hewlett Packard Enterprises Co. for their quantum-focused initiatives.
