The strong momentum and bull run of basic materials carried over into 2026 and appears poised to be the TSX’s top-performing sector for the second consecutive year. While mining heavyweights continue to lead the surge, lumber stocks are delivering market-beating returns. Stella-Jones, Canfor Corporation, and Doman Building Materials are worth watching right now. These companies offer operational leverage and have maintained resilience amid persistent price volatility and trade restrictions.

• Stella-Jones is close to eclipsing its 52-week high of $101.31. …The multi-year demand for utility poles and railway ties is a strong tailwind, driven by replacement and maintenance.
• Canfor manufactures low-carbon forest products. …The lumber stock is up 19.4% year to date, notwithstanding the significant operating losses throughout 2025.
• Doman attracts income-oriented investors for its generous payout. Canada’s only fully integrated national distributor… of building materials and home renovation products.