Dollarama (TSX:DOL) has undeniably been one of the best growth stocks on the TSX in recent years. In a period of five years, it has risen by a mammoth 300%. Even this year, amid tariff uncertainty and concerns about the economy, it’s proving to be resilient – it’s up close to 40% since January. The stock has simply been unstoppable.
Recently, the company reported its first-quarter earnings for fiscal 2026, for the period ending May 4. Sales totaled $1.5 billion for the quarter and rose by 8.2% year over year. Its comparable sales growth was solid at 4.9%. Net earnings totaled $273.8 billion and were up by 26.9%.
The company has been generating solid growth and with more expansion opportunities in Canada, Mexico, and potentially Australia if its acquisition of The Reject Shop goes through, this is a business that can still get much larger in the future.
Many brokerages have been raising their price targets for Dollarama in light of its recent performance, with many now seeing the dollar store stock rising to above $200. The consensus price target is, however, still around $186, which means that based on that it’s already around its peak. But with more analysts likely to bump up their price targets as a result of its strong performance, that consensus average may move higher in the weeks ahead.
The stock is trading at more than 40 times earnings, and it isn’t cheap. But with a strong brand and still plenty of growth opportunities on the horizon, Dollarama could make for a good long-term buy.
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