Plenty of Canadian stocks have been skyrocketing in 2025. The TSX Index is up 20% this year and trading just below a new all-time high of over 30,000 points. However, not every Canadian stock has enjoyed the tailwind of the market. That could mean opportunity.
If you don’t mind looking in the value bin, there could be high-quality stocks that you can pick up for sky-high gains for the future. Here are two Canadian stocks to look at.
Constellation: This Canadian stock is down but definitely not out
Constellation Software (TSX:CSU) is having some tough times. Firstly, fears about artificial intelligence competing against its niche software businesses initially drew the stock down.
Secondly, news about CEO Mark Leonard’s resignation for health reasons saw the stock decline by nearly 20% after the announcement. Luckily, the stock gained back most of those losses by the end of the trading day.
However, the pullback is a wonderful buying opportunity. While Mark Leonard is the heart and architect of the company, Mark Miller, the new CEO, has been there since the company’s first acquisition. As the COO, he has largely been operating the business.
With a decentralized business model and around 1,000 business units, Constellation’s businesses operate very independently. They have a model to follow, but operators have a lot of leeway. Consequently, the loss of Mark Leonard is sad, but it won’t impact the business substantially at all.
If things remain as usual, shareholders should continue to enjoy above-average returns. This high-quality Canadian stock has compounded returns by a 34% compounded annual growth rate since inception.
Right now, Constellation only trades for 22 times free cash flow. Investors rarely get such substantial corrections to build a position. If you can look through the near-term noise, this could be the perfect opportunity to add for further skyrocketing returns.
MDA stock: A potential moonshot investment
Another Canadian stock that has experienced some volatility in 2025 is MDA Space (TSX:MDA). Its stock is down 22% in the past month. It had a major $1.8 billion contract that was signed in August and was abruptly cancelled a few weeks ago.
The good news is that MDA had not even placed that contract into backlog yet. Consequently, there will be very little near-term impact from the cancellation. It still has a $4.2 billion backlog to complete. This alone is expected to drive double-digit growth for the next several years.
Space is a rapidly growing sector. Telecommunication providers are in a rush to build out low-orbit satellites that broaden their networks globally. MDA is a leading satellite manufacturer. It also has technical capacities in robotics, sensors, and geo-intelligence that are seeing strong demand.
In 2025, MDA set guidance to grow revenues by approximately 48% and earnings before interest, tax, depreciation, and amortization (EBITDA) by 45%. Even with the cancelled contract, it still intends to maintain its guidance.
After MDA stock declined, it only trades with a forward enterprise value-to-EBITDA ratio of 11.7 and a price-to-earnings ratio of 22. That is down considerably from just a month ago. On a price-to-growth basis, MDA still looks very attractive.
This Canadian stock is volatile, so investors need to factor that into their position sizing. However, for a stock with a great future ahead, this is one to bet on for the potential to skyrocket as it executes.
