Overview
RBC Capital released an updated edition of its Top 30 Global Ideas for 2026, a curated list of high-conviction, long-term equity selections spanning multiple sectors. The quarterly update, overseen by the firm's Co-Heads of Global Research Graeme Pearson and Mark Odendahl, reflects changes driven by fresh assessments of each stock's upside potential.
The newest list incorporates three additions and three removals while retaining the remaining 27 positions from the prior quarter. The three names added are Apotex Health, Canadian National Railway and Lonza. The firms taken off the roster are Alcon, Boston Scientific and DuPont de Nemours. RBC describes the revisions as a rotation toward higher-conviction opportunities based on its current outlook.
Performance snapshot
Over the most recent quarter, the Q2/26 Top 30 list returned a total of 11.1% in U.S. dollar terms, compared with a 12.8% return for the MSCI World Index. From its inception at year-end 2019 through the latest update, the Top 30 has generated a compound annual return of 13.9%, modestly above the benchmark's 13.4% compound annual return for the same period.
New additions - sector focus and rationale
The three additions span the Industrials and Health Care sectors. RBC's commentary on each new inclusion is summarized below.
- Canadian National Railway (CNI) - RBC highlights the railroad operator's valuation discount to rail peers even as network fundamentals improve. The bank points to improving car velocity and accelerating trends through the first half of the year, along with record grain volumes, gains in intermodal market share and pricing that is running ahead of inflation. Those factors are cited as supportive of a solid earnings growth outlook. The firm also notes ongoing capacity investments that should create meaningful operating leverage as freight volumes recover. In a recent company update, Canadian National Railway reported second-quarter 2026 adjusted earnings of C$2.08 per share on revenue of $4.75 billion, beating estimates and prompting the company to raise its full-year guidance. Following that report, Evercore ISI raised its price target for the company while Benchmark reiterated a Hold rating.
- Apotex Health (APTX) - RBC adds Apotex Health on the strength of its market positions in generics. The company is said to hold a 23% share of the Canadian generic drug market and to rank among the top 10 generic players in the U.S. market. RBC highlights Apotex's first-to-market execution, which the bank expects will allow the company to capture a disproportionate share of the economic value arising from improving industry fundamentals, including an increasing flow of branded drugs losing exclusivity. That dynamic should sustain industry-high returns on invested capital and comparatively strong financial metrics versus peers, according to RBC.
- Lonza (LONN) - RBC characterizes Lonza as an earnings-per-share compounder trading at an attractive valuation versus its growth profile. The research note states that the market continues to price in historical concerns around capital intensity and returns that RBC believes are either resolved or analytically misframed. The lack of near-term catalysts is cited as creating an entry point for investors with longer investment horizons.
Maintained positions and removals
Aside from the three new inclusions, the remainder of the Top 30 was carried over from the prior quarter, preserving continuity for many of the bank's highest-conviction ideas. The three names removed - Alcon, Boston Scientific and DuPont de Nemours - were supplanted to make room for selections that met RBC's current criteria for upside potential.
Takeaway
RBC's Q2/26 Top 30 update reflects a selective shift into specific Industrials and Health Care names that the bank views as offering differentiated upside. The list's recent quarterly return trailed the MSCI World Index, while its long-term track record since 2019 remains slightly ahead of the benchmark on a compound annual basis.