Most Canadian stocks have trended higher over the past year. Earlier recession fears have eased, and investor confidence has been further lifted by the excitement surrounding artificial intelligence (AI) and other next-generation technologies. These tailwinds have driven notable gains for several fundamentally sound TSX-listed companies, particularly those with exposure to high-growth sectors.
Even after their impressive performance so far this year, many of these names still offer compelling long-term opportunities. Their solid fundamentals and robust growth prospects position them as attractive candidates for investors who are willing to buy during market pullbacks and hold for the next decade.
Against this backdrop, here are two Canadian stocks to buy on the dip and hold for 10 years.
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MDA Space stock
MDA Space (TSX:MDA) stock has been on a stellar trajectory, soaring nearly 249% over the past year. The surge reflects the company’s exceptional execution, growing demand for its advanced space technologies, and a solid backlog.
Notably, this Canadian space technology company reported a 68% year-over-year jump in its revenue in Q1. Moreover, its adjusted EBITDA was up 63% and its EPS almost doubled. Its Satellite Systems division led the charge with a 155% surge in revenue, driven by major projects like Telesat Lightspeed and Globalstar’s next-gen constellations. Robotics & Space Operations grew steadily thanks to the Canadarm3 program, while Geointelligence remained stable amid strong Earth observation demand. An order backlog of $4.8 billion offers multi-year revenue visibility, with 80% of it coming from markets outside the U.S.
Looking ahead, global investment in space technology, spanning communications, defence, and climate monitoring, is accelerating. MDA’s proven and diversified technology portfolio positions it to capture this growth. With strong customer engagement, a resilient supply chain, and a robust balance sheet, the company is well placed to weather short-term headwinds. In short, MDA Space offers a compelling case as a “buy on the dip” stock with the potential to deliver strong returns over the next decade.
Celestica stock
Celestica (TSX:CLS) is another compelling stock to hold for the next decade. It has been on a remarkable run, benefiting from growing investments in AI infrastructure. Its Hardware Platform Solutions (HPS) arm, within the Connectivity and Cloud Solutions (CCS) segment, is delivering explosive growth, supporting its share price.
Known for its expertise in manufacturing, hardware platform, and supply chain solutions, Celestica’s exposure to the high-growth, high-margin areas positions it well to deliver above-average returns.
Its latest earnings strengthened its bull case. Notably, Celestica’s revenue surged 21% year-over-year to $2.9 billion in Q2, with HPS alone generating $1.2 billion, reflecting an 82% jump and making up 43% of total sales. This momentum is driven by hyperscaler demand, as major tech players invest heavily in upgrading data centre infrastructure.
Looking ahead, Celestica is ramping up its next-generation 800G networking program while it is witnessing strong demand for its 400G networking switches.
With HPS now accounting for a bigger share of revenue, Celestica’s more profitable business mix alongside productivity gains will likely boost its bottom line. Given the robust growth outlook and improving profitability, Celestica looks like a strong long-term play, especially if investors can catch it on a pullback.
