Barry SchwartzTMX GroupX.TOSTRONG BUYJun 09, 2026

It continues to be a top pick. Long term growth is compelling. She might take some profits given its run-up. It's evolving into a global financial infrastructure business with growing exposure to data analytics and international market. Q3 revenue growth was up 17% and organic revenue growth was 11%, which means growth isn't coming only from acquisitions. Their financial data and analytical revenue jumped 26% last quarter. Risk: operating expenses increased 35%. TMX just took over the Australian exchange [Cboe Australia].

It holds a near-monopoly. TMX has been buying great, little companies overseas in the data area. Likes it a lot. He expects over 15% returns in the next 3 years. Buy the dip? You can, but sometimes, the price doesn't come down.

Great company. Global player (50% of revenue comes from outside Canada). Analytics and solutions now form the major part of its business. Good competitive moats. AI fears overdone. Very high structural ROE. Capable consolidator. Serial dividend grower.

Data is important. Concerns about AI and blockchain, but reality is that there will be more demand for the stats it can produce. Will probably get involved in blockchain down the road. Diversifying internationally. Yield is 1.90%.

AI takeover fears have lessened. TMX has expanded from being Canadian-centric trading volume to be more international. The TMX has increased their revenue through data which is in bigger demand now. The AI drive is helping the consumption of their data; you pay for their data through subscription.

Expects foreign inflows into Canada. Chart shows a double bottom, trying to reaccelerate. His team's fundamental analyst rates it a Strong Buy. The longer chart shows the big move higher and then the multi-year consolidation from 2025. Cautious of a bigger corrective phase this year. That volatility means more trading and a tailwind for this name. 

AI will put a lot of unexpected areas under pressure but this one, on technicals, seems to have weathered the storm. Market seems to be giving it a vote of confidence. Yield is 1.91%.

It has sold off in the last two months along with US exchange stocks over fears that prediction markets will take market share from stock exchanges. Management has done a fine job of diversifying business into recurring revenues. They just bought Cboe. Trades cheaply under 20x PE. TMX hold proprietary data, so AI can't replicate that.

Globally, stock exchanges want more and more data. TMX's business is growing. The stock declined because of the fall in commodity prices from the Iran war, but it will come back. This is a long-term hold.

Likes it Investors overlook it. Pays a bit of a yield. The TSX and TSX-V exchanges have been solid businesses. TMX is also entering a new data analytics platform. It has good recurring revenue based on subscriptions. It was hit by the broad software sell-off. Will do well long term, but need to see a price floor during this decline.

It had a nice run up, then went down. Investors have overlooked TMX for the long term. They operate solid businesses. When volatility spikes, they make money off higher volumes. They generate big money from their data analytics platform. In 2017, they bought Trade Port, a European energy trading software platform, and in 2024 bought VettaFi (to help create ETFs) which is a fast-growing business. TMX sales grew 16%, EBITDA beat by 7% while net income more than doubled. After that report, TMX reported two companies it bought which expanded their debt. That's why shares took a hit.

Long-term growth profile for trading exchanges does have a lot of cyclicality. Very vulnerable potentially on the chart. Pulling back to last level of support. If it holds, great entry location. His crystal ball is a bit foggy sometimes, so he can't say if it'll hold or not ;)

If you're a trader, good risk/reward here. Lots of resistance up in the $50 range. Could have more downside risk; if we go into recession, there's less trading. At best, do half a position now.

Quite bullish. Has done phenomenal job growing. Business is recurring and extremely sticky. Pullback is a buying opportunity. No structural issues. More Canadian IPOs would help. A valuation reset to take advantage of.

Hit his radar recently. Will work if you buy around these levels. PEG isn't 1, but still very good value. Painful to buy things when they're down, chart is scary, but there's upside.