Analysts Have Rated These Canadian Stocks a Strong Buy: Here’s What I Think

Analysts are calling two lesser-known Canadian stocks compelling “strong buy” opportunities now.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 4, 2025 4:30 pm EST

| More on: FCPIF

Key Points

FC pays monthly income with about an 8% yield, focuses on short-term conservative mortgages, and trades at a modest valuation.
PIF owns geothermal, hydro, and solar projects in Latin America, trades below book value, and could re-rate if projects deliver growth.
Analyst-backed picks offer TSX exposure to income and growth and are useful starting points for further research.

It can be incredibly difficult to find Canadian stocks that look like a solid investment. That’s why tuning into what analysts are saying about stocks is one of the best ways to start your research. Analysts day in and day out look for opportunities, providing “strong buy” to “strong sell” recommendations, and everything in between.

Yet today, we’re focusing on the former. Let’s look at two Canadian stocks analysts continue to recommend as a “strong buy,” and why.

Muscles Drawn On Black board — Source: Getty Images

FC

Analysts and dividend-income investors view Firm Capital Mortgage Investment (TSX:FC) as a compelling “buy.” That’s largely because it ticks several boxes that income-seeking portfolios favour. First and foremost, it offers a monthly dividend schedule that aligns nicely with cash-flow goals. The Canadian stock pays approximately $0.94 per share and with a yield near 8%.

This high-yield profile is bolstered by a business model built around short-term real-estate mortgage lending – in particular, niche markets underserved by large banks. The portfolio is heavily weighted toward first mortgages, floating interest-rate loans and relatively conservative loan-to-value ratios. All prime signs for investors to dig into.

Another plus analysts point to is the valuation metrics. FC trades at a modest 12 times future earnings and 1.1 times book value. All considered, FC stands out as a strong buy candidate in the monthly-income space. It combines a high yield, monthly payout rhythm, and a business strategy with structural advantages and a reasonable valuation. For investors who prioritize income, it presents an attractive option.

PIF

Another solid option analysts believe could be a strong buy is Polaris Renewable Energy (TSX:PIF). This is a strong buy for a handful of reasons that centre around its renewable-energy focus, potential upside, and current valuation. The Canadian stock operates geothermal, hydroelectric, and solar assets in Latin America and the Caribbean. This gives it exposure to fast-growing renewable markets rather than being tied to slower-moving Canadian energy infrastructure.

Part of the rationale is that PIF sits at a relative valuation discount with regard to its book value. Furthermore, some suggest its asset base and project pipeline are not fully priced in. As of writing, it trades at just 17 times forward earnings and 0.85 times book value. This gives room for asset re-rating if the Canadian stock meets its targets, especially since renewable-energy markets attract premium valuations when growth and execution align.

All in all, the strong buy case for PIF hinges on a clean growth story in renewable energy, significant upside potential based on the current valuation, and an expanding project pipeline that could start delivering more predictable cash flows. For an investor comfortable with project-risk and a renewable-energy focus, analysts believe PIF offers a compelling value proposition right now.

Bottom line

Analysts are literally paid to dig deep into Canadian stocks like these. If you’re on the hunt for a lesser-known winner, finding analyst recommendations is certainly a great place to start. And when it comes to finding a dividend stock and growth stock on the TSX today, these two Canadian stocks stand out for almost any investor.