In a well-diversified portfolio, it’s important to have publicity to increased threat shares with huge upside. Whereas their place in a portfolio ought to be restricted to lower than 10%, the precise weighting relies in your age and threat tolerance, publicity to those shares provides traders publicity to huge, life-changing returns.

On this article, I wish to talk about two TSX shares which have increased threat, increased reward profiles. Right here’s why I feel it is best to contemplate including them to your portfolio.

BlackBerry: a TSX inventory with imminent development drivers and catalysts

The primary TSX inventory is BlackBerry Ltd. (TSX:BB). Whereas BlackBerry’s inventory has been caught buying and selling beneath $10 for a few years now, issues have been brewing beneath the floor. And up to date outcomes are beginning to catch as much as the promise that I’ve at all times seen within the firm. 

For instance, BlackBerry’s lately reported quarter (Q1, fiscal 2026) beat expectations on each the income and earnings traces. Income got here in at $121.7 million, and earnings per share (EPS) got here in at $0.02. This compares to EPS of a lack of 0.03 in the identical quarter final 12 months. It additionally compares to expectations for EPS of $0.00.

So, what’s driving this? Properly, an necessary a part of the story is BlackBerry’s drive to decrease prices and enhance efficiencies. Actually, administration decreased prices by $150 million final 12 months in its quest to streamline and right-size the enterprise.

At the moment, BlackBerry has a really strong stability sheet, is cash-generating, and is worthwhile. By way of its stability sheet, BlackBerry’s debt-to-total capitalization ratio is a mere 21%. By way of money generated, money from operations was $11 million. These are milestones that traders like me, who believed in BlackBerry’s potential, have waited a very long time for.

Wanting forward, BlackBerry’s QNX enterprise is dealing with robust development tailwinds. The way forward for the related automotive is right here, and BlackBerry is entrance and centre on this revolution. Backlog for its QNX enterprise is $865 million, a transparent sign of the expansion that we will count on. In 2025, the corporate’s whole income was $535,000.

Peyto Exploration: A TSX inventory benefiting from steadily rising demand

The opposite inventory that I imagine has vital upside potential is Peyto Exploration and Improvement (TSX:PEY). Peyto is one in every of Canada’s largest pure fuel producers, with long-life, low-cost reserves and a diversified set of markets and clients.

Peyto is a pure fuel producer, and as such, it is vitally uncovered to pure fuel costs. As you understand, commodity costs will be very unstable. But, Peyto has achieved a powerful job at retaining money prices low, money flows up, and margins excessive.

Within the state of affairs the place pure fuel and commodity costs rally huge, Peyto inventory has a really vital upside. And this state of affairs is probably going, in my opinion, as an evaluation of the long-term outlook for the pure fuel market is kind of optimistic. In a nutshell, pure fuel is in demand as a substitute for coal within the electrification motion and in liquefied pure fuel (LNG) markets.

Peyto is at present buying and selling at a price-to-cash circulation a number of of 5.1 instances, and its dividend yield is a really beneficiant 7.22%. For my part, the inventory is very undervalued given the robust outlook in addition to the corporate’s wonderful operational and monetary administration report.

The underside line

The 2 TSX shares that I touched upon on this article are each extraordinarily nicely run, and they’re dealing with robust fundamentals, each of their respective industries and of their company-specific outlooks.