A proven strategy to benefit from the power of compounding is to buy and hold quality stocks over the long term. It is essential to identify a portfolio of blue-chip companies that are positioned to grow revenue and earnings across business cycles, eventually translating to outsized returns.
In this article, I have shortlisted three top TSX stocks you can buy now and never sell. Let’s dive deeper.
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Is CNR stock a good buy?
Canadian National Railway (TSX:CNR) is a North American railway company that enables global trade through its extensive rail network spanning all three North American coasts. CN transports a diverse range of commodities, including intermodal containers, bulk goods, and various types of freight, across Canada and the United States.
CN stock remains a compelling buy due to its strategic positioning and operational excellence. Its unique three-coast network provides unmatched gateway options for North American trade, creating competitive advantages as global supply chains evolve.
The Prince Rupert gateway is likely to be a key growth catalyst for the railway giant. This strategic facility offers available capacity and expansion capabilities for intermodal and bulk shipments, positioning CN to capture increasing Asia-Pacific trade volumes.
CN’s operational resilience is backed by strong financial performance, with 8% earnings growth and a 20-basis-point improvement in the operating ratio in the first quarter (Q1), demonstrating effective cost management. CN estimates earnings growth of 10% to 15% in 2025, while tightly controlling resources to deliver margin expansion.
Recent labour agreements, which provide 3% annual wage increases, ensure operational stability across Canadian and U.S. operations, eliminating a key risk factor. CN’s scale economies enable cost advantages as volumes increase, while its counter-positioning against changes in trade patterns provides defensive characteristics.
The bull case for this TSX stock
MDA Space (TSX:MDA) is a Canadian space technology company specializing in satellite systems, robotics, space operations, and geo-intelligence. It designs and manufactures satellites, develops robotic systems such as Canadarm3, operates Earth observation constellations, and provides space-based solutions to governments and commercial clients globally.
In Q1 of 2025, MDA reported revenue of $351 million, an increase of 68% year over year, while adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose by 63% to $69 million.
MDA ended Q1 with a backlog of $4.8 billion, which provides revenue visibility to investors. It expects revenue to rise to $1.57 billion in 2025, up from $1.08 billion in 2024. The recent $1.1 billion contract with Globalstar for the manufacturing of next-generation low Earth orbit constellations validates MDA’s technological leadership and market position.
The company’s economies of scale, proven execution on complex programs, and counter-positioning through comprehensive solutions create sustainable competitive advantages. With robust customer demand across both government and commercial sectors, MDA is well-positioned to capitalize on the accelerating transformation of the space economy.
Should you buy this TSX stock today?
Brookfield Renewable Partners (TSX:BEP.UN) is a leading global renewable energy operator and developer with a diversified portfolio of renewable power assets. It operates hydroelectric, wind, solar, and distributed generation facilities across multiple continents, while actively acquiring renewable platforms and developing new capacity to meet growing energy demand.
In Q1 of 2025, Brookfield reported a 15% year-over-year growth in funds from operations and ended the quarter with US$4.5 billion in available liquidity.
The company’s aggressive growth trajectory is impressive, commissioning 800 megawatts of new capacity in Q1 and expecting to bring eight gigawatts online in 2025, more than double the commissioning rate from three years prior. This expansion capitalizes on strong energy demand driven by digitalization and reindustrialization trends.
BEP’s global diversification provides competitive advantages, enabling effective navigation of supply chain challenges and tariff impacts through strong supplier relationships and procurement networks.
Strategic partnerships with global technology players, achieved through project-specific deals and framework agreements, position BEP stock to benefit from the massive energy requirements of the technology sector. With renewables being critical to meeting global power demand, BEP’s diversified portfolio and proven execution capabilities make it well-positioned for sustained growth.
