Following a weaker performance last week, the S&P/TSX Composite Index rebounded sharply to reach a new all-time high yesterday. Over the first three trading days of this week, the index has gained 3.1%, extending its year-to-date increase to 24.7%. The resolution of the government shutdown in the United States and growing expectations of further interest rate cuts by the Bank of Canada—driven by signs of weakness in the country’s manufacturing sector—have lifted investor sentiment and fueled the rally in Canadian equities. Against this optimistic backdrop, I believe the following three top Canadian stocks offer excellent buying opportunities.
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Celestica
Although Celestica (TSX:CLS) has already delivered an impressive return of over 250% this year, I believe its upward momentum could continue. With the growing adoption of artificial intelligence (AI), hyperscalers are ramping up investments in large-scale data centre infrastructure to meet the surging demand for computing power, thereby expanding Celestica’s addressable market. Meanwhile, the Toronto-based company continues to broaden its product portfolio by launching new and innovative solutions to address the evolving needs of its customers.
Building on its strong third-quarter performance and improving growth outlook, Celestica’s management has raised its 2025 guidance and issued an optimistic outlook for 2026. The revised 2025 guidance projects a 26.4% increase in revenue and a 52.1% rise in adjusted earnings per share (EPS). Additionally, the company expects to generate approximately $425 million in free cash flow this year. Looking ahead, its 2026 guidance suggests revenue growth of 65.8% and adjusted EPS growth of 111.3% compared to 2024 levels. Despite these robust growth prospects, Celestica currently trades at just 2.5 times analysts’ projected sales for the next four quarters, making it an attractive buying opportunity.
Dollarama
Second on my list is Dollarama (TSX:DOL), a defensive stock with a tilt towards growth. The discount retailer has adopted a superior direct sourcing model, eliminating intermediatory expenses and driving its bargaining power. Additionally, its streamlined logistics have reduced its expenses, enabling it to offer a wide range of consumer products at competitive prices. Supported by its compelling offerings, the company maintains healthy same-store sales even in a challenging macroeconomic environment.
Moreover, Dollarama continues to expand its presence, aiming to increase its store count to 2,200 in Canada and 700 in Australia by the end of fiscal 2034. Meanwhile, its subsidiary, Dollarcity, is also growing its footprint across Latin America, with plans to expand its store network from 658 to 1,050 locations by the end of fiscal 2031. Additionally, Dollarama holds an option to raise its ownership stake in Dollarcity from 60.1% to 70% by 2027. These strategic expansion initiatives can strengthen Dollarama’s financial performance in the years ahead, potentially driving further growth in its stock price.
Enbridge
My final pick is Enbridge (TSX:ENB), a leading dividend stock known for its stable, contracted business model, consistent dividend growth, and attractive yield. The company transports oil and natural gas under a tolling framework and long-term take-or-pay contracts, while also operating a highly regulated natural gas utility business. In addition, Enbridge owns 41 renewable energy assets and sells the electricity generated through long-term power-purchase agreements.
Therefore, the Calgary-based company’s financials are less prone to economic cycles and market volatility, thereby generating stable and predictable cash flows that have allowed it to raise dividends consistently. It has consistently raised its dividend at an annual growth rate of 9% since 1995 and now offers an appealing forward yield of 5.52%.
Moreover, Enbridge added $3 billion worth of projects in the recently reported third quarter, increasing its secured capital backlog to $35 billion. The company plans to invest between $9 billion and $10 billion annually to fund these projects, thereby expanding its asset base and enhancing its financial performance. Backed by these growth initiatives, management expects to return between $40 billion and $45 billion to shareholders over the next five years, making Enbridge an attractive long-term investment.
