Here Are My Top 2 TSX Stocks to Buy Right Now

Written by Daniel Da Costa at The Motley Fool Canada

After an eventful 2025 and with many top TSX stocks trading at or above fair value, it’s no surprise that a lot of investors are unsure about what stocks to buy right now.

On the one hand, there’s still a ton of uncertainty in both the economy and the market. Many of the themes that drove stocks higher in 2025 are starting to cool off, whether that’s the gold price rally or the AI boom losing some momentum.

On the other hand, interest rates are finally moving lower, and investors and economists alike expect further rate cuts in 2026, which should help support stock prices over the long run.

That’s why being selective matters more than ever today. You don’t want to overpay for stocks, and finding high-quality companies trading at attractive valuations is always ideal.

At the same time, though, a stock trading at fair value with strong long-term growth potential is often a better investment than a mediocre company that looks cheap. A discount can only close once, if you’re lucky, whereas a high-quality business that continues growing can compound returns for years.

That’s what long-term investing is really about. You don’t need dozens of stocks or perfect timing. Owning a small number of exceptional companies and letting them compound over time is often the most effective way to build wealth.

So, with that in mind, here are my top two TSX stocks to buy as we head into 2026, ones that you can plan to hold for the long haul.

Although most stocks on the TSX are trading at or above their fair value, a handful of high-quality names still offer investors a significant opportunity. So, if you’re looking for a top TSX stock that’s trading unbelievably cheap right now, Canadian Apartment Properties REIT (TSX:CAR.UN) is one I’d recommend.

CAPREIT, as it’s known, is the largest residential REIT in Canada, with a massive and highly diversified portfolio of apartment buildings spread across the country.

What makes CAPREIT one of the top TSX stocks to buy now and hold for the long haul is that residential real estate is about as reliable as it gets. People always need a place to live, which is why CAPREIT has been able to generate consistent cash flow through just about every market environment.

That’s why the fact that you can gain exposure to a high-quality and diversified residential real estate portfolio across Canada at a major discount is such a significant opportunity.

In fact, right now, CAPREIT trades at a forward price-to-adjusted-funds-from-operations (P/AFFO) ratio of just 15.4 times. That’s not only well below its 5- and 10-year averages of 22.9 and 23.5 times, respectively, but it’s also essentially the lowest valuation CAPREIT has had in over a decade.