Canadian stocks have had a great run in 2025. It is harder to find great investment opportunities today than it was at the start of the year. Investors may need to sneak around the bargain bin to find some diamonds in the rough.
However, those diamonds could really become apparent in the back half of 2025 and into 2026. If you have $1,000 to spend, here are four Canadian stocks to look at for value and growth.
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A top Canadian defence stock
Calian Group (TSX:CGY) has had a tough year or two. Its IT/cybersecurity business has underperformed expectations and has been a drag on results. However, a change in leadership in that business could be the first catalyst for improvement.
The other key ingredient for this stock is a rise in defence spending in Canada. A large part of Calian’s business caters to Canadian and European defence spending on training, satcom, and health services.
A rise in promised military spending will undoubtedly trickle down to Calian. The company has a good balance sheet, so it should have capacity to make acquisitions and even buy back more stock.
CGY stock trades with a forward price-to-earnings ratio of 10. If it can hit its historic low-teens growth rate, there could be attractive upside.
A freight company at an attractive price
TFI International (TSX:TFII) has been in the dumps for about a year, but this year its stock really declined. It is down 36% this year. TFI has had operating issues in the U.S. Its challenges are compounded by a freight recession that has kept volumes constrained.
In its recent quarter, the company saw a notable improvement in operating metrics. While it is still facing a challenging environment, it continues to generate strong cash flows.
Likewise, it still has the same management team that generated strong returns for shareholders over a decade ago. Given its depressed valuation, TFI is aggressively buying back stock. Eventually, the freight environment will improve. When it does, TFI’s stock could start to recover quickly.
A pipeline stock for attractive income
If you are looking for income, Pembina Pipeline (TSX:PPL) is attractive. Its stock has lagged peers this year. The market has been concerned about its recently renegotiated tolling agreement for the Alliance Pipeline. PPL stock is down 5% this year.
While 2025 might present lacklustre growth, Pembina has a full slate of growth opportunities. Its Cedar LNG project is already seeing very strong market interest. Likewise, its midstream joint venture continues to execute new projects.
Pembina is very well managed and has a great balance sheet. While you wait for the sentiment to turn, you collect a 5.6% dividend yield.
A real estate compounder
Another stock looking very interesting is Mainstreet Equity (TSX:MEQ). It owns over 18,000 apartment units across Western Canada. Yet, Mainstreet is not a real estate investment trust. That means that it can retain the cash flow it earns from rents and re-invest it into buying more properties.
Its portfolio is economically resilient because of its focus on affordable rents, centrally located properties, and value-add opportunities. Even though rental rate growth has been challenged across Canada, Mainstreet’s counter-cyclical strategy should prosper.
The company has ample liquidity. Apartment valuations have recently pulled back and Mainstreet can be an opportunistic acquirer. For a great long-term compounder trading at a reasonable valuation, Mainstreet is a buy today.
