With interest rates staying high and economic growth looking uncertain, investors are being pickier about where they put their money. Some Canadian stocks offer strong returns, steady results, and growth potential. Others look appealing but might not deliver what you expect. Right now, two Canadian stocks are worth buying hand over fist, and one might be better left alone for the time being.
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Buy: CCL
The first safe stock to buy is CCL Industries (TSX:CCL.B). It’s one of the largest label and packaging companies in the world. That may not sound exciting, but it’s the kind of business that keeps humming along no matter what’s going on in the economy. In its first quarter of 2025, CCL reported revenue of $1.89 billion, an increase of 8.6% from the year before. Net income rose to $207 million, up 8%, while adjusted earnings per Class B share climbed to $1.18 from $1.08. That’s a solid beat in a market full of mixed results.
The Canadian stock also renewed its share buyback program, signalling management’s confidence in its future. With operations in over 40 countries and continued demand for consumer packaging and healthcare labelling, CCL looks like a great long-term buy.
Buy: TMX
Another Canadian stock to seriously consider is TMX Group (TSX:X). TMX is the company behind the Toronto Stock Exchange and TSX Venture Exchange, as well as clearing and data services for Canada’s financial markets. That gives it a strong and stable base of revenue.
While trading volumes can be volatile, TMX makes money on every transaction, listing, and data feed. In its most recent quarterly earnings, TMX reported resilient results across its trading and information segments. The Canadian stock generates strong free cash flow and offers a modest dividend. As long as Canadian markets keep moving, TMX profits. That makes it a dependable pick, especially for investors looking for a mix of income and stability. It’s not the flashiest company, but it doesn’t need to be. It just works.
Avoid: BCE
Now let’s talk about a Canadian stock that might not be the right buy right now: BCE (TSX:BCE). This is one of Canada’s biggest telecom providers, known for its high dividend and wide reach in mobile, internet, and TV services. In its first quarter of 2025, BCE reported operating revenue of $5.93 billion, a slight decrease from the previous year. Net earnings actually rose to $683 million, with adjusted net earnings per share climbing to $0.68 from $0.44. So why the caution?
Despite strong income numbers, BCE is facing big headwinds. Competition is rising, regulation is getting tougher, and growth in wireless and media is starting to stall. Telecoms rely heavily on cash flow, and when interest rates are high, debt becomes more expensive. BCE carries a lot of debt, and while its dividend looks safe for now, there’s little room for earnings growth in the near term. The Canadian stock has also been under pressure this year, and without a clear catalyst for a turnaround, new investors might not see the gains they’re hoping for.
Bottom line
In this kind of market, you want to focus on Canadian stocks with strong fundamentals, a solid track record, and room to grow. CCL Industries fits that bill with global operations and consistent earnings. TMX Group is well-positioned to keep benefiting from Canada’s financial system. Both offer good value for long-term investors. BCE’s generous dividend might look tempting, but it comes with limited upside and growing risk.
For investors building a portfolio today, the best move is to double down on the winners and steer clear of Canadian stocks that aren’t pulling their weight. CCL and TMX are both strong buys. BCE might still be worth holding if you already own it, but it’s not the one to load up on right now.
