Investors did not have high expectations for the Toronto Stock Exchange at the start of 2025. Matching the double-digit return (+17.99%) it achieved in 2024 would have been good enough. However, the Canadian equity market stunned everyone with its resilience even amid a raging tariff war.
Fast forward several months, and market observers felt a new milestone was within reach. On September 30, 2025, the TSX closed above the 30,000 mark for the first time — a feat followed by multiple new record highs in October. Brian Belski, the chief investment strategist at BMO, believes this year will mark one of the TSX’s strongest outperformances since 1990.
The bullish sentiment, driven by investor confidence, has opened up buying opportunities. Three stocks have become attractive options, too.
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Improved performance
Laurentian Bank of Canada (TSX:LB) has hardly been mentioned as a reliable bank stock in recent years. Fortunately, LB deserves a second look this time by optimistic investors as well as income seekers. At $32.33 per share, the year-to-date gain is 18.9%, while the dividend yield is 5.91%.
In the nine months ending July 31, 2025, the $1.5 billion regional bank’s net income reached $108.4 million compared to the $46.2 million net loss a year ago. In the third quarter (Q3) of fiscal 2025, the provision for credit losses (PCL) declined 32% year over year to $11.1 million.
According to LBC president and CEO Éric Provost, management’s disciplined approach to risk management served the bank well through an uncertain economic environment. While the erratic stock performance remains a legitimate concern, dividend consistency is a non-issue. This bank stock has never missed a quarterly dividend payment since Q1 1995.
Record backlog
Finning International (TSX:FTT) is one of the industrial stocks with a remarkable share price growth thus far in 2025. At $71.04 per share, FTT investors enjoy a market-beating 89.8% year-to-date gain on top of a modest but safe 1.21% dividend. It carries a buy rating from market analysts.
The $8.7 billion company is the world’s largest Caterpillar dealer. This industrial equipment dealer serves customers in various industries such as construction, forestry, mining, and petroleum. The geographic and end-market diversity of the business has always been Finning’s competitive advantage.
Its president and CEO, Kevin Parkes, said the near-term plan is to maximize product support, drive full-cycle resilience, and grow the used, rental, and power businesses. At the end of Q2 2025, equipment backlog was $3 billion, a new all-time high.
Buy signal
Saputo’s (TSX:SAP) strong Q1 fiscal 2026 earnings results suggest a buy signal. This $13.9 billion company also holds a significant position in the global dairy market. In the three months ending June 30, 2025, net earnings rose 16.2% year over year to $165 million.
Its president and CEO, Carl Coliz, said, “Our first quarter performance reflected the strength of our global operations and the effectiveness of our strategy.” He also noted the solid momentum to begin the fiscal year. At $34.38 per share, SAP is up 40.4% year to date. The 2.33% dividend yield is an added enticement.
Stock resurgence
Laurentian Bank, Finning International, and Saputo may have been overlooked last year but have experienced a resurgence in 2025. You can consider including any one of these three momentum stocks on your buy list this October.
