When the TSX shifts gears, investors usually start looking past yesterday’s winners. That can mean moving from defensive names into industrials, materials, technology, or cyclical companies with improving demand. The best stocks in this kind of market tend to have clear catalysts, decent balance sheets, and earnings that can grow if confidence improves. They don’t need perfection, just a setup where better sentiment can unlock value.
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VCM
Vecima Networks (TSX:VCM) is a smaller tech name with a timely hook. The Victoria-based company makes hardware and software used in broadband access, video delivery, and fleet tracking. In short, it helps cable and telecom companies move more data, improve networks, and support streaming and connected services. Over the last year, Vecima kept building its next-generation broadband story, including deeper work with major customers as cable companies upgrade networks for faster speeds.
The latest earnings showed signs of recovery. In the second quarter of fiscal 2026, revenue rose 3.5% year over year to $73.7 million. Gross margin improved to 44.9%, up from 36.4% a year earlier. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $10.6 million. Management also pointed to stronger broadband adoption over the next 12 months. The stock remains small, with a market cap near the low hundreds of millions, so it comes with volatility. Still, if network spending ramps up, VCM could benefit before more investors notice.
LUN
Lundin Mining (TSX:LUN) fits a different kind of TSX shift. If investors rotate toward hard assets, copper exposure can look appealing fast. Lundin produces copper, gold, and nickel, with operations across the Americas. Copper remains the main draw because it connects to electrification, grid upgrades, data centres, and industrial growth. Over the last year, Lundin stock simplified its portfolio, including asset sales, while focusing more heavily on large copper operations.
Its fourth-quarter 2025 numbers were strong. Revenue reached US$1.35 billion, with US$1.30 billion from continuing operations. Copper production came in at 87,032 tons, while gold production reached 34,129 ounces. For the year, revenue from continuing operations reached about US$4.1 billion, while adjusted EBITDA came in near US$1.9 billion. Lundin stock has already moved, so it’s not a sleepy bargain anymore. But valuation still looks reasonable if copper prices stay firm. The main risks are mine costs, commodity swings, and political or operational issues.
MRE
Martinrea International (TSX:MRE) brings the auto and manufacturing angle. The company makes lightweight structures and propulsion systems for automakers around the world. That includes parts used in vehicles as automakers keep pushing for lighter, more efficient platforms. Auto suppliers can struggle when production slows, but they can also rebound quickly when demand improves. Over the last year, Martinrea focused on margins, cash flow, and debt reduction while dealing with softer production in parts of the auto market.
The latest quarter gave investors a cleaner read. In the first quarter of 2026, sales fell to $1.13 billion from $1.17 billion a year earlier, but net income rose to $27.9 million from $17.5 million. Adjusted EBITDA reached $137.7 million, with a 12.2% margin, and adjusted earnings per share climbed to $0.45. Management reaffirmed 2026 guidance for $4.5 billion to $4.9 billion in sales and $125 million to $175 million in free cash flow. With the stock still trading at modest earnings and sales multiples, MRE looks like a value name with operating leverage.
Bottom line
So, if the TSX shifts gears, investors don’t need to chase the loudest stocks. Vecima offers broadband growth, Lundin stock offers copper leverage, and Martinrea offers a manufacturing rebound story with improving profitability. Each comes with risk, but each also has a clear reason to move higher if the market starts rewarding earnings momentum again.
