When it comes to finding a strong buy, the first place many investors will want to look is analyst recommendations. It’s clear why. These are people who identify the next big winners for a living, looking at the past, present and future of the Canadian stock, along with fundamentals. So what are analysts saying these days?
NWC
Analysts have increasingly rated North West Company (TSX: NWC) as a strong buy in 2025. The dividend stock combines the stability of an essential service provider with the pricing power of a niche retailer that dominates in markets few competitors can access. Unlike traditional grocery or retail chains, North West operates stores across Canada’s North, rural communities, and Alaska, regions where it is often the only major supplier of food, fuel, and household essentials. That geographic moat gives the Canadian stock remarkable resilience in volatile markets.
The dividend stock’s most recent quarterly earnings back this up. In its Q2 2025 results, North West reported net earnings of $43.7 million, up 11.6% year over year, and sales of $668 million. Comparable store sales rose over 3%, with food sales remaining robust despite cost-of-living pressures that have hurt many retailers. Furthermore, the dividend stock currently offers a dividend yield of about 3.6%, well covered by its cash flow, with a payout ratio around 55%.
Shares of NWC trade at around 11 times future earnings, a discount to both historical averages and peers, even though its margins are stronger and its competitive moat is arguably wider. With operating margins above 10%, a stable double-digit return on equity, and consistent mid-single-digit earnings growth, analysts see the dividend stock as undervalued relative to its cash-generating power.
NFI
Analysts have also rated NFI Group (TSX: NFI) as a strong buy in 2025. The Canadian stock has gone through a turnaround story this year, becoming a compelling growth opportunity. After several difficult years marked by supply chain disruptions, pandemic-related slowdowns, and cost inflation, NFI has emerged as a leaner, more efficient manufacturer that’s perfectly positioned to benefit from a global boom in electric and zero-emission transit vehicles.
At the heart of this bullish view is NFI’s rapid recovery in financial performance. In its most recent Q2 2025 results, the company reported revenue of $868 million, up nearly 15% year over year. The Canadian stock ended the quarter with a backlog of over 10,000 equivalent units, representing approximately $8 billion in future revenue, and management reaffirmed its guidance for continued margin expansion into 2026.
The Canadian stock implemented cost-saving programs that are expected to generate roughly $75 million in annual efficiency gains by 2026. These measures, combined with higher-margin electric vehicle deliveries, are projected to drive annual EBITDA growth of 20–25% over the next two years. With the shares trading around 10.5 times forward earnings, analysts argue the market hasn’t yet priced in the company’s earnings power or the durability of its demand pipeline.
CGY
Finally, Calian Group (TSX:CGY) is a strong buy in 2025 because it represents one of the most consistent, under-the-radar growth stories in Canada. The company combines stable government and corporate contracts with exposure to some of the fastest-growing sectors of the economy, including defence technology, cybersecurity, healthcare, and training.
The bullish sentiment gained momentum after Calian’s Q3 fiscal 2025 results. The Canadian stock reported revenue of $202 million, up 11% year over year. Net profit came in at $11.2 million, translating to $0.89 per share, up sharply from $0.71 last year. Importantly, Calian raised its full-year revenue guidance to $780 to $820 million. One of the primary reasons analysts see Calian as a strong buy is its record backlog, which recently topped $1.5 billion, providing strong earnings visibility through 2026.
Financially, Calian is one of the most disciplined mid-caps on the TSX. The company maintains a strong balance sheet, with net cash of more than $60 million and minimal debt, giving it ample room for acquisitions. And now, it trades at about 11 times future earnings, making it valuable even in today’s market.
Bottom line
Analysts know what they’re doing, which is why investors should take what they say as a jump-off point for their own research. And when it comes to undervalued stocks, these are top-notch strong buys recommended by analysts.
