The Canadian stock market has trended higher so far in 2025, with the S&P TSX Composite Index gaining 17.8% year to date. Notably, interest rate cuts to support the economy, strong performance from the resource sectors, including mining companies (primarily those involved in precious metals), and investors’ enthusiasm for artificial intelligence (AI) technology have driven the equity market higher. Interestingly, even as the broader market continues to move higher, shares of some of the fundamentally solid companies have dipped, providing a buying opportunity.
For investors with a long-term outlook of at least five years, these stocks present attractive buying opportunities. Against this background, here are the three best stocks to buy today and hold for the next five years.
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MDA Space stock
MDA Space (TSX:MDA) stock slid sharply after EchoStar unexpectedly cancelled a multi-billion-dollar satellite contract. The setback came as EchoStar struck a deal to sell its spectrum licenses to Elon Musk’s SpaceX, abandoning its earlier plan to build its own satellite network. The news erased more than a third of MDA’s value from recent highs.
While the loss is significant, it does not derail MDA’s long-term trajectory. The space technology company still has $4.6 billion order backlog, excluding the EchoStar contract, providing strong revenue visibility through 2025 and beyond. Management reaffirmed financial guidance for 2025, reflecting resilience across its Satellite Systems, Robotics & Space Operations, and Geointelligence divisions.
Notably, global demand for space-based technologies is rising. From satellite communications and defence to climate monitoring and earth observation, governments and commercial players are investing heavily. MDA’s cost-competitive products and diversified portfolio position it to capture this growth.
For investors, the stock’s sharp pullback represents a buy-the-dip opportunity, with MDA well placed to deliver strong returns in the long term.
Lightspeed stock
Lightspeed Commerce (TSX:LSPD) entered 2025 on shaky ground, as investors reacted negatively to its decision to stay public rather than go private. This led to a selloff that left the stock down about 20.5% year to date. However, the Canadian tech giant’s fundamentals are strengthening, and signs of a recovery are emerging.
The stock trades at just one times its next-12-month enterprise value-to-sales multiple, which looks deeply discounted for a company expanding its scale, improving profitability, and growing its customer base across North America and Europe. Moreover, its rising average revenue per user adds stability to its margins and supports its investment case.
Lightspeed will benefit from the ongoing shift towards omnichannel commerce platforms. Its strategy of expanding high-value customer relationships and broadening its payments platform should drive margin gains. The adoption of Lightspeed Payments is increasing, which could further accelerate profitability and support its turnaround.
With adjusted free cash flow nearing breakeven and momentum building across its payments, capital, and software divisions, Lightspeed’s low valuation offers investors an appealing entry point. The company’s improving fundamentals suggest it could be poised for durable long-term growth.
TFI International stock
Shares of the transportation and logistics giant TFI International (TSX:TFII) are down about 33% year to date, reflecting the freight industry’s broad struggles with soft demand and global trade uncertainty. Notably, in the first half of the year, TFI’s revenue declined year over year, reflecting weak freight volumes and lower fuel surcharges. Nonetheless, its recent acquisitions provided some cushion.
Tariff-related uncertainty has pressured industrial demand, particularly in TFI’s Truckload business. Moreover, its Less-Than-Truckload and Logistics divisions are witnessing softness. However, management’s focus on cost control and operational efficiency is helping to protect margins.
While the near-term outlook remains challenging, TFI’s scale and acquisition track record position it well for recovery. Moreover, a rebound in industrial activity and improved trade dynamics could provide meaningful upside. Thus, long-term investors willing to weather short-term volatility could consider buying the dip in TFI stock.
