With the market off to a pretty hot start in 2026, sticking with the proven performers may be your best bet, even if the value you can get isn’t the best in the world. Perhaps paying a decent multiple for a fundamentally sound titan could be a good move in the long run. In this piece, we’ll look at some fantastic Canadian giants whose shares still look buyable despite leaning towards the pricier end of their historical range.
Shopify
His shares of Shopify (TSX:SHOP) worth another look now that they’re down just over 8% from their high? It’s undoubtedly difficult to say when or if Shopify can become Canada’s largest company by market capitalization again. Its $298.2 billion valuation is huge, but it still has a way to go if it wants to take the number one spot. Given the recent spike in volatility in tech names, growth investors may want to incrementally contribute to any pullback.
With AI potentially paving the way for another acceleration in revenue growth, the hefty multiple may be worth paying for. And while there’s always a possibility that shares could fall even further, especially if investors become reluctant to pay up for fast-growing technology, I think SHOP stock is going for a reasonable multiple given its deep AI-driven catalysts and the potential of agentic AI to further enhance the long-term story.
While the 121 times forward price-to-earnings (P/E) ratio seems absurdly expensive, I believe the e-commerce titan is more than capable of growing earnings in a way that could significantly compress the multiple over the next three years. If the AI revolution makes Shopify a winner, it may still be too early to turn a profit. Of course, if you’re overly exposed to technology and AI, it’s never a bad idea to diversify from a portfolio construction perspective.
Royal Bank of Canada
Royal Bank of Canada (TSX:RY) is a blue chip giant with a market cap of $331 billion at the time of writing. The banking giant is up almost 75% over the past two years, which is better than many tech stocks. With Royal Bank betting big on next-generation technology, it may be the big Canadian bank that will also see gains as the technology gains momentum.
Be that as it may, Royal Bank has been a winner worth holding even as prices shift to the warmer end, with shares trading at 16.7 times price-to-earnings multiple in early January. The dividend yield is also quite small, now at 2.8%. While income investors have better options elsewhere, I think most investors should stick with RY stock for its capital gains and dividend growth. It is a giant that can stay on top of the world TSX Index.
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