In this article, we will look at the 10 Best TSX Stocks to Buy According to Billionaires.
On June 13, the Royal Bank of Canada released its Economic Outlook for Canada, highlighting that 2025 has been a struggling year for the economy. This is because of a combination of trade shocks and weak growth. Moreover, the unemployment rate has been rising, consumer confidence dropped sharply in the spring, and businesses remain cautious. Housing markets are also unstable despite interest rate cuts by the Bank of Canada.
In addition, structural problems also persist, such as low business investment and poor productivity growth. This is further exacerbated by lower immigration rates, meaning population growth won’t boost the economy as before.
Despite these challenges, the report highlights that the outlook has brightened compared to a few months ago as trade tensions with the US have eased to some extent, monetary policies are flexible, and Canada can exercise its resource advantage.
The report highlights five key positive developments, including most Canadian goods being exempted from US tariffs, better consumer data, potential for further rate cuts, the economy’s fiscal capacity, and the country benefiting from the growth in the US.
With that, let’s take a look at the 10 best TSX stocks to buy according to Billionaires.
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Our Methodology
To curate the list, we used the Finviz stock screener to aggregate a list of Canadian (TSX) stocks sorted by market capitalization. Next, we ranked the stocks in ascending order of the number of billionaire investors sourced from Insider Monkey’s database. We have also added the hedge fund sentiment regarding each stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best TSX Stocks to Buy According to Billionaires
10. Cenovus Energy Inc. (NYSE:CVE)
Number of Hedge Fund Holders: 41
Number of Billionaire Investors: 13
Value of Billionaire Investment: $881,002,147
Cenovus Energy Inc. (NYSE:CVE) is one of the Best TSX Stocks to Buy According to Billionaires. On September 9, Cenovus Energy Inc. (NYSE:CVE) announced that it will sell a 50% interest in WRB Refining LP to its joint venture partner Phillips 66 for $1.4 billion.
The deal includes the Wood River Refinery in Illinois and the Borger Refinery in Texas. Together, both the refineries process around 495,000 barrels per day, with Cenovus Energy Inc. (NYSE:CVE)’s share being 247,500 barrels per day. Management noted that this sale aligns with the company’s strategy to focus on assets core to its business. After the sale, the company’s downstream operations will comprise five refineries and an upgrader, with a total crude capacity of 472,800 barrels per day.
After the announcement, on September 10, Raymond James analyst Michael Barth, CFA, maintained a Buy rating on Cenovus Energy Inc. (NYSE:CVE) with a price target of C$30. Earlier on September 8, Jefferies analyst Lloyd Byrne had also reiterated a Buy rating on the stock with a price target of C$29.
Cenovus Energy Inc. (NYSE:CVE) is an integrated oil and natural gas company based in Canada. It produces crude oil and natural gas in Canada and the Asia Pacific region.
9. Royal Bank of Canada (NYSE:RY)
Number of Hedge Fund Holders: 28
Number of Billionaire Investors: 11
Value of Billionaire Investment: $934,985,653
Royal Bank of Canada (NYSE:RY) is one of the Best TSX Stocks to Buy According to Billionaires. On September 5, Paul Holden from CIBC downgraded Royal Bank of Canada (NYSE:RY) from Outperform to Neutral, while keeping the price target unchanged at C$208.
The conservative rating comes despite Royal Bank of Canada (NYSE:RY) beating Wall Street targets for its fiscal third quarter of 2025, on August 27. The company posted a revenue of $12.32 billion, up 13.49% year-over-year and ahead of expectations by $788 million. Moreover, the EPS of $2.78 also topped consensus by $0.42.
Management noted growing its net income by 21% year-over-year to reach $5.4 billion. In addition, the bank saw growth coming from all its business segments. Despite this performance, Royal Bank of Canada (NYSE:RY) was downgraded to Neutral by Holden. He noted the downgrade is due to valuation concerns and an implied return to price target of only 3% after earnings season from the Canadian banks. He noted that the group’s consensus estimates are conservative and believes that Canadian banks can continue to beat expectations.
Royal Bank of Canada (NYSE:RY) is a global financial institution offering banking, wealth management, capital markets, and insurance services.
