Even though Canadian stocks are often looked down upon when compared to U.S. peers, Canada has a long list of stocks that have created substantial value for shareholders.
The great news is that many of these high-quality stocks still have substantial opportunities for growth ahead. If I had a 20-year investment horizon, here are three Canadian stocks I would be very comfortable owning for long-term compounded returns.
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A top Canadian software stock
Of course, at the top of the list is Constellation Software (TSX:CSU). This Canadian stock has delivered for long-term shareholders. Its stock is up over 25,000% since it entered the market in 2008!
Today, Constellation has a market cap of just short of $100 billion. It is one of the largest stocks on the TSX Index. Yet almost nobody outside of investing has heard of it. That is because it operates through over 1,000 specialized vertical market software companies.
These companies don’t have large total addressable markets (TAMs). Yet, they tend to serve a crucial service to their customers and are difficult to replicate by competitors. As a result, Constellation can swipe these companies up at attractive valuations and optimize them for cash generation.
This formula has been proven over a decade and a half. I expect Constellation will continue to drive high-teens to low-20% returns for several years ahead. If you want exposure to more specific markets (like Europe or media/telecommunications), you could consider its spin-off companies, Topicus.com or Lumine Group.
A top Canadian real estate stock
Colliers International Group (TSX:CIGI) has been another long-term stock winner for patient Canadian shareholders. Over the past 20 years, shareholders have enjoyed a 1,345% total return (around 14% compounded annual growth rate).
It has a market cap of $11.7 billion today. Colliers has undergone a transformation in the past few years. Yet, the market is only now catching on. It’s known for being a significant player in the commercial real estate services and brokerage business.
However, over the past five years, it has been building out substantial platforms in investment management and engineering and advisory. It made some major acquisitions in 2025 that really push those franchises forward.
There could be substantial value unlocked if those entities were spun out on their own. Regardless, Colliers has a strong brand, a great, highly invested executive team, and multiple avenues for growth in the years ahead.
An undervalued transport company
While both of the above Canadian stocks trade at a fairly hefty valuations today, TFI International (TSX:TFII) looks attractive in the $120-$130 price range. Right now, TFI trades with a market cap of $11 billion.
However, it was considerably larger just a few quarters ago. The stock has been hit by a few tough quarters and a challenging operating environment (largely due to tariffs and a freight recession).
Yet, this company has everything you want in a high-quality business. It has a history of smart growth by acquisition. It has a very smart CEO-operator who also owns a big chunk of the company. TFI is working hard to improve its underperforming operations in the U.S.
Lastly, the company has a great long-term record of returns. This stock won’t be cheap forever. This is a great time to add for a future recovery in the freight environment. Partner with this Canadian stock for the long term, and you should stand to do very well.
