Given all that has happened in the world in 2025, the TSX Index has been more resilient than many investors probably anticipated. The TSX is up 3% this year. That beats the S&P 500, which is down 3% this year.
The TSX may not be the most diversified or powerful index, but it does have some really good companies under the hood. Several of these companies are trading at attractive valuations today.
If you are wondering where to invest $3,500, here are five stocks I’d consider buying.
Image source: Getty Images
A TSX stock for the moon
MDA Space (TSX: MDA) recently had a rough run. This TSX stock fell 15% in one day. The U.S. government announced plans to reduce funding for NASA and certain space projects. However, that won’t substantially affect MDA, and it appears like a market overreaction.
In the meantime, MDA has been delivering strong results. It has a great balance sheet and a backlog that could support years of growth. If you want exposure to the growing space economy, this is a name to look at adding before it rockets up.
A quality transport company
Another TSX stock to contemplate adding is TFI International (TSX: TFII). If you want a beaten-up, contrarian opportunity, this is a stock to consider. TFI stock is down 35% year to date.
It is a significant transport and logistics provider in Canada and the United States. The U.S. trade war has wreaked havoc on the transport industry.
The good news is that it won’t likely get any worse. The other good news is that TFI has several self-help initiatives that are starting to gain traction, especially in its U.S. less than truckload division.
Overall, this is a very well-managed company with a great history of strong acquisitions and excellent capital allocation. Buy it on a blip, and you should do very well in the long term.
A blue-chip for the long term
Speaking about excellent companies, Canadian Pacific Kansas City (TSX: CP) is another TSX stock that looks like an interesting addition. Like TFI, it has been a long-term winner for investors. However, fears about a trade war have drawn the stock down. Only recently has it ticked up.
CP has a network that spans across North America. It has many levers it can pull to adapt its network to economic conditions. CP has plenty of synergies to unlock from its acquisition of Kansas City Southern. For above-average growth from a solid blue-chip stock, CP is a great buy now.
A safe company for dividends
If you want some income and a stable business, Pembina Pipeline (TSX: PPL) is a good buy. This TSX stock is down about 4% since it released earnings. Pembina yields 5.5% right now. It just raised its annual dividend by 3%.
Pembina has a resilient and crucial infrastructure business. Over 80% of its income is from assets that are on long-term contracts. That income safely supports its dividend. Pembina has a sector-leading balance sheet, so it’s a very safe bet for stable income.
A TSX fintech growth stock
If you want a TSX stock with a little more torque for growth, Propel Holdings (TSX: PRL) is interesting. It is a higher-risk but a higher-reward stock to buy. It provides small loans to the non-prime consumer credit segment.
These are riskier consumers. However, Propel has a proprietary AI lending platform that helps it more effectively and efficiently underwrite loans.
It also charges elevated rates for the risk it takes on. Revenues and earnings are steadily growing by 30-40%. The stock can be volatile, but Propel could still have a substantial growth runway ahead.
