Even after all that has happened in 2025, there are still Canadian stocks that could create longstanding wealth from here. The pullback in Canadian stocks has made valuations more attractive. If they continue to decline, there could be some serious deals to be had.
The better the price, the better the long-term return. Now is the perfect time to build a list of high-quality stocks to buy.
Markets are likely to see continued downward pressure as tariff threats create operating uncertainty. On those big pullbacks, you can add to positions you have been watching for a while.
A real estate services stock to hold for decades
Colliers International Group (TSX:CIGI) is an attractive Canadian stock for decades ahead. The company has a record of delivering mid-teens total annual returns over several decades. However, lately the stock has been spiralling downward. It is down 16% in the past three months.
That could be a gift for Canadian investors. Colliers is a high-quality business. Not only does it operate an international commercial real estate brand, but it also has an investment management platform and a global engineering/advisory business.
It has everything you want from a high-quality stock: a highly invested, long-term management team, a great services platform, a solid balance sheet, and growth ahead. Colliers stock trades for 18 times forward earnings right now. However, if it hits 15–16 times, it would be an incredible bargain.
A top Canadian software stock
Descartes Systems Group (TSX:DSG) is another long-term winner for patient investors. Even though DSG stock is up 177% in the past five years, it is down 20% in the past month. That could be a gift, especially if it comes down more.
Descartes operates the world’s largest logistics network. It compliments this with a mix of software services that help carriers and supply chain businesses save time, money, and resources. It has a large business that focuses on trade compliance. The recent trade battle could create higher demand for this product.
Descartes is very profitable, and it generates a lot of spare cash. Consequently, it has been rewarded with a high market valuation. Worries about the trade spat have pulled the stock back.
DSG trades with a trailing enterprise value (EV)-to-earnings before interest, tax, depreciation, and amortization (EBITDA) ratio of 30 times and a forward EV/EBITDA ratio of 25 times. Its value is still elevated. However, if it were to pull back anymore, it would be an excellent time to add this quality stock to your portfolio.
A top-performing Canadian stock for the long run
Constellation Software (TSX:CSU) is one of the greatest stocks in Canadian history. CSU has soared 25,776% over the past ~18 years. It has delivered a 34.3% compounded annual return.
The great news is that Constellation is likely far from done. Certainly, given its $100 billion-plus market cap, returns may moderate in the coming years. However, the company is extremely thoughtful and precise about its growth.
It has recently started to target larger software companies (where it had previously no exposure). Likewise, it may moderately alter its return hurdle rate so that its companies can increase the number and quality of the companies they buy.
Lastly, Constellation has been using spinouts to deliver additional shareholder value. Topicus.com and Lumine Group are attractive stocks to buy if you can’t afford Constellation’s $4,7000-plus price tag.
Constellation stock is down about 5% in the past five days. If this Canadian stock falls anymore, it could be a great addition for a long-term shareholder looking to compound value.
