Buying the dip isn’t just a catchy phrase; it’s a strategy that’s helped many investors turn short-term pullbacks into long-term wins. When quality companies hit a rough patch or fall out of favour, it can be the perfect time to scoop them up at a discount. Right now, three Canadian stocks stand out for dip buyers looking to play the long game. Those are goeasy (TSX: GSY), Cameco (TSX: CCO), and Magna International (TSX: MG). These Canadian stocks span different sectors, but all share one key trait: each is fundamentally strong and built for long-term growth.
goeasy
Let’s start with goeasy. It’s a non-prime lender offering personal loans and lease-to-own products to Canadians who may not qualify for traditional financing. While that might sound risky during an uncertain economy, goeasy has proven it knows how to manage that risk well. In its latest earnings report for the fourth quarter (Q4) of 2024, goeasy posted revenue of $405 million, up 20% year over year.
The loan portfolio hit a record $4.6 billion, growing 26% from a year earlier. Earnings per share (EPS) came in at $4.45, which beat expectations, and net income was a healthy $76.5 million. The Canadian stock also raised its dividend for the tenth straight year, offering a current yield of 3.63%. That’s rare for a growth-oriented lender.
What makes goeasy appealing to dip buyers is its consistent performance, even in tough times. While many lenders tighten up, goeasy continues to grow its loan book and manage credit losses. Its customers tend to pay higher rates, but goeasy has systems in place to keep defaults in check. With inflation easing and interest rates expected to stabilize, the environment could turn even more favourable.
Cameco
Now, let’s shift to a very different sector: uranium. Cameco has long been a leader in the space, and with the world looking for cleaner energy options, nuclear is back in the spotlight. That’s good news for Cameco, which supplies uranium to power plants around the globe. In its most recent earnings for Q1 2025, Cameco reported net earnings of $70 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $353 million.
The fuel services segment, often overlooked, grew its earnings and EBITDA by over 100% compared to the same quarter last year. While the uranium segment dipped slightly due to the timing of sales, demand remains strong, and Cameco’s long-term contracts help smooth out those quarterly bumps.
What makes Cameco exciting is not just the price of uranium but the changing tone around nuclear power. More countries are extending the lives of nuclear plants or building new ones to meet climate targets. That trend is expected to continue for years, and Cameco is in a prime position to benefit.
Magna
Then there’s Magna, a global auto parts supplier that’s been around for decades. It makes everything from chassis and seating systems to electric powertrains and sensors. The Canadian stock took a hit over the past year due to lower global vehicle production and cost pressures, but things are starting to look up. In Q1 2025, Magna reported revenue of $10.1 billion and net income of $203 million, with adjusted earnings per share of $1.69, up from $1.33 a year ago. That’s a clear sign that its recovery is gaining momentum.
Magna’s long-term appeal comes from its role in the electric vehicle transition. Automakers are investing heavily in electric vehicles, and Magna supplies many of the parts that go into them. It has also been investing in its own electrification and autonomous vehicle capabilities, which could set it up for strong growth down the line. While the stock is still trading below its highs, earnings are starting to pick back up, and the company continues to pay a dividend, currently yielding around 3.3%.
Bottom line
All three of these Canadian stocks are down from peaks, but that’s exactly what makes them attractive to dip buyers. Each has a clear long-term growth story, a healthy balance sheet, and a track record of bouncing back. By getting in while prices are low, investors can position themselves for gains as the broader market finds its footing.
