Paying up for a stock can feel a bit backwards. Most investors want a deal, not a premium price tag. But sometimes an “expensive” stock simply reflects a business that keeps executing, keeps growing, and keeps finding new ways to win. In that case, waiting for a perfect bargain can mean missing a great company altogether. That is where a few Canadian names still stand out, even after strong runs.
Source: Getty Images
HPS
Hammond Power Solutions (TSX:HPS.A) makes dry-type transformers and related equipment. It sits right in the path of some very real demand trends. Electrification, grid upgrades, industrial investment, electric vehicle (EV) charging, and data centre expansion all need power infrastructure. Over the last year, HPS kept adding to that story with product moves such as its EV charging distribution transformer and smart transformer platform. All while announcing an acquisition of AEG Power Solutions’ transformer and power quality business to broaden its reach.
The valuation is not exactly sleepy. It shows a market cap of roughly $2.2 billion and a trailing price-to-earnings (P/E) near 27. Even so, the numbers still look strong enough to justify attention. In Q3 2025, revenue rose 14% year over year to $218 million, which management called its second-best quarter ever for shipments, while net earnings came in at $17.4 million and adjusted earnings per share (EPS) hit $1.56. Backlog was also up 27.7% from the start of the year, with large data centre orders arriving after quarter-end. In short, it still looks like a high-quality industrial business with room to grow.
LMN
Lumine Group (TSXV:LMN) is a software consolidator focused on communications and media software businesses. Investors often give those models premium valuations when they trust management’s capital allocation. Lumine stock spent the last year doing what it does best: buying, integrating, and building. It completed the purchase of Datafusion Systems in 2025 and then closed the acquisition of Synchronoss Technologies in February 2026, adding more scale to its long-term buy-and-hold model.
It is not cheap on the surface. It shows a market cap of about $6.3 billion, a trailing P/E of 38.7, and a forward P/E near 19.3. Yet the latest results show why investors are willing to pay up. For 2025, revenue climbed 15% to $765.7 million, operating income rose 31% to $275.7 million, and cash flow from operations jumped 106% to $236.5 million. Net income swung to $118.8 million from a loss in 2024. That is the kind of turnaround that tends to keep a premium multiple alive.
PBH
Premium Brands (TSX:PBH) owns a large portfolio of branded specialty food businesses, so it gives investors exposure to steady consumer demand with an acquisition twist. Over the last year, it has been busy. It completed the acquisition of Stampede Culinary Partners in January 2026 and also moved to sell its interest in Shaw Bakers, showing that management is still shaping the portfolio rather than letting it sit still.
This one also carries a valuation that can make investors pause. It lists a trailing P/E above 63, though the forward P/E is much lower at roughly 14, which tells you the market expects earnings to improve. The latest quarter helps explain that optimism. Premium Brands reported record Q4 2025 sales of $1.9 billion, up 15.7%, record adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $179.5 million, and adjusted EPS of $1.29, up 22.9%. It also guided for 2026 sales of $9.25 billion to $9.55 billion and adjusted EBITDA of $870 million to $910 million. Commodity costs and consumer pressure remain risks, but this looks like a business still growing into its scale.
Bottom line
None of these stocks are bargain-bin buys. That is the point. HPS, Lumine stock, and Premium Brands all ask investors to pay a little more for quality, growth, and momentum. That can feel uncomfortable in the moment, but strong businesses often do look expensive before they look obvious. For investors willing to think a few years ahead instead of a few weeks, these three still look worth buying anyway.
