The Canadian equity market has maintained its upward trend in 2025 despite macro and trade-related challenges. The Canadian benchmark index has climbed 21.1% year to date, thanks to the interest rate cuts, a solid upswing in the precious metals sector, and excitement around artificial intelligence (AI) technology.
While the broader market has rallied, several high-quality, fundamentally solid companies have seen their share prices pull back. For long-term investors, these dips offer compelling entry points.
So if you’re investing with at least a three-year time horizon, here are three Canadian stocks worth buying now and holding through the next three years.
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Canadian stock #1: MDA Space
MDA Space (TSX: MDA) has dropped nearly 53% from its 52-week high after EchoStar cancelled a major satellite deal. Yet the sell-off overlooks the company’s strong fundamentals and exposure to one of the fastest-growing sectors of the global economy.
MDA is a leader in digital satellites, robotics, and geointelligence, areas benefiting from rising demand in communications, defence, and Earth observation. This space technology company is likely to benefit from increasing demand from the defence segment. Notably, NATO’s renewed focus on defence investment further expands MDA’s market opportunity as space becomes essential to national security.
Further, momentum in satellite systems continues to build, with growing interest in communication satellites and new constellation projects across multiple regions. Its robotics and space operations divisions are gaining traction with both government and commercial customers, while demand for its Earth-observation services remains robust.
Overall, MDA’s strong balance sheet, strategic acquisitions, and accelerating global investment in space present a solid growth opportunity. Thus, this sharp decline in the share price presents a buying opportunity.
Canadian stock #2: Cargojet
Cargojet (TSX:CJT) stock has dropped roughly 41% from its 52-week high, creating an opportunity for long-term investors as this decline is temporary. While softer global trade and weaker international demand have pressured its ACMI and Charter segments, the company’s core domestic network remains resilient. Its dominant position in Canadian air cargo space, focus on operating efficiency, and long-term customer contracts position it well to navigate the challenging operating environment.
Further, recent contract renewals with Amazon and DHL add stability to its operations and will drive its earnings. Cargojet maintains a healthy EBITDA margin despite challenges, and the stock is well-positioned to rebound as shipping volumes recover.
Seasonal strength in the fourth quarter, driven by holiday retail demand, should provide an additional boost. With leadership in time-sensitive freight and a focus on capital-light growth opportunities, Cargojet is a compelling long-term buy-and-hold stock.
Canadian stock #3: goeasy
goeasy (TSX:GSY) is one of the top TSX stocks to buy and hold for the next three years. The stock has plunged roughly 43% from its 52-week high after a short-seller report accused the lender of manipulating its numbers. Adding to its pain, the company’s recent quarterly results showed pressure from higher credit-loss provisions and rising financing costs.
Nonetheless, this subprime lender’s fundamentals remain solid, and the company is focusing on tighter underwriting and secured loans to add stability to its operations. While this transition has temporarily reduced yields, it also lowers long-term credit risk and supports more stable earnings.
goeasy is poised to benefit from strong loan demand, a large underserved subprime lending market, diversified funding, and an efficient omnichannel model. Its efforts to enhance operating efficiency and maintain solid credit performance further strengthen its growth profile.
After the sell-off, goeasy trades at 6.4 times forward earnings, well below its historical norms, despite expectations for double-digit earnings growth in the upcoming years. Combined with a 4.7% dividend yield, the stock’s valuation looks compelling for long-term investors.
