Buy the Dip: 3 Stocks to Buy Today and Hold for the Next 5 Years

These Canadian stocks have solid fundamentals and are well-positioned to rebound strongly as the demand and operating environment improves.

Key Points
  • The S&P/TSX Composite has risen about 30% over the past year, supported by interest rate cuts, strong momentum in the resource sector, and resilient consumer spending.
  • Despite the rally, several high-quality TSX stocks have pulled back sharply from recent highs, creating attractive entry points for long-term investors.
  • Cargojet, MDA Space, and SECURE Waste Infrastructure stand out as fundamentally strong companies trading at a discounted valuation.

The Canadian stock market has delivered a strong performance over the past year, with the S&P/TSX Composite Index rising by roughly 30%. This advance has been supported by interest rate cuts aimed at stimulating economic growth. Moreover, robust momentum in resource-driven sectors, particularly mining companies tied to precious metals and continued resilience in consumer spending drove the broader market higher.

Even as the broader equity market trended upward, shares of several fundamentally strong companies have pulled back from recent highs. These short-term declines create a compelling entry point for investors with a long-term view of at least five years.

Against this backdrop, here are the three TSX stocks to buy today and hold for the next five years.

stock chart

Source: Getty Images

Cargojet

Cargojet (TSX: CJT) stock has pulled back significantly, offering a buying opportunity for long-term investors. Shares of the Canadian air cargo leader are down roughly 32% from their 52-week high, pressured by softer global trade and weaker international demand, which have affected its ACMI and charter operations.

While near-term headwinds persist, Cargojet’s fundamentals remain solid. The company holds a dominant position in Canada’s air cargo market, has an efficient fleet, is likely to benefit from e-commerce tailwinds, and relies on long-term contracts that help stabilize revenue during cyclical slowdowns. Importantly, its domestic business continues to perform well, highlighting the resilience of its operating model.

Further, renewed agreements with major customers such as Amazon and DHL strengthen Cargojet’s outlook by improving earnings visibility and supporting cash flow stability. As shipping volumes recover and demand improves across its charter and ACMI operations, the company appears well-positioned for a solid rebound.

MDA Space

MDA Space (TSX: MDA) has fallen sharply, with the stock down about 43% from its 52-week high. The decline was largely driven by contract-related concerns rather than by deterioration in the company’s core business. Thus, this decrease in the shares of this space technology company offers a solid entry point for investors with a long-term outlook.

Investor sentiment weakened after EchoStar cancelled a multi-billion-dollar satellite deal and sold its spectrum licenses to SpaceX. Nonetheless, MDA’s underlying fundamentals remain intact, and demand for its technology and offerings is high. The company is a global leader in digital satellites, space robotics, and geointelligence, all of which are supported by rising demand across communications, defence, and Earth observation. Moreover, its strong balance sheet provides financial flexibility as the space economy continues to expand.

With investments in its end markets accelerating, MDA appears well-positioned for future growth, making the share price weakness compelling for investors.

SECURE Waste Infrastructure

Shares of SECURE Waste Infrastructure (TSX: SES) have fallen roughly 22% from their 52-week high amid weaker commodity prices and broader economic uncertainty. Despite the pullback, the company’s underlying business remains resilient.

SECURE operates a diversified portfolio of energy and waste infrastructure assets that generate stable, predictable cash flow. Much of its revenue stems from ongoing production and industrial activity rather than from drilling cycles, helping reduce exposure to commodity volatility. Moreover, its efficiency initiatives and disciplined cost control further support margins.

Although the metals recycling segment faces near-term pressure from trade-related headwinds, conditions could improve into 2026. With major projects nearing completion, new growth initiatives ramping up, and Canadian oil and gas production holding steady, SECURE’s long-term outlook remains constructive.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cargojet. The Motley Fool recommends Amazon and Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.

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