Solid long-term portfolios are built on great watch lists. Before putting money into the market, it’s important to identify high-conviction Canadian companies and wait for the right entry opportunities. The TSX offers a range of high-quality stocks that, over time, can play a meaningful role in building long-term wealth.
Here are two fundamentally strong Canadian stocks with strong competitive moats and major upside potential, making them essential additions to your watch list right now.
Source: Getty Images
Top Canadian stock #1: Bird Construction
Bird Construction (TSX:BDT) deserves a spot on every investor’s watch list. It offers exposure to Canada’s long-term infrastructure buildout. The construction and maintenance company is well-positioned to benefit from sustained public and private spending across the energy, transportation, and utilities sectors, which continue to attract significant investment.
This favourable environment has already been reflected in the stock’s performance, with shares rising about 129% over the past year. While that momentum shows strong fundamentals, it also raises valuation concerns. The long-term outlook remains positive, but waiting for a pullback could offer a more attractive entry point and improve the overall risk-reward balance.
Bird benefits from its diversified portfolio, which spans high-growth sectors such as power generation, mining, and transportation networks. The move helps reduce reliance on any single segment and cushions the business against the uneven timing of large projects. At the same time, a focus on contracts with more predictable margins and shared risk structures has improved earnings stability.
Strategic acquisitions have further expanded Bird’s capabilities and geographic reach. Additions such as Trinity Communication Services, Jacob Bros Construction, and Fraser River Pile & Dredge have strengthened its presence in telecom, civil construction, and complex marine infrastructure, enhancing its competitive position.
Looking ahead, demand visibility remains robust. The company ended 2025 with a contracted backlog of $5.1 billion and an additional $6 billion in pending awards, providing a solid pipeline for future revenue. Overall, strong industry tailwinds, disciplined execution, and expanding capabilities make Bird Construction stock an attractive long-term opportunity.
Top Canadian stock #2: SECURE Waste Infrastructure stock
SECURE Waste Infrastructure (TSX:SES) is another compelling stock to add to your watch list. It is a resilient player within the waste management and energy infrastructure space. The company operates across multiple end markets, which helps cushion it against downturns in any single area and supports more consistent overall performance.
Supporting SECURE’s investment case is its contract-based revenue model. Much of SECURE’s income comes from long-term agreements, reducing its exposure to commodity price swings. This stability improves cash flow visibility.
Although its metals recycling segment is currently under pressure from tariffs, the impact appears limited. The company’s core waste and infrastructure operations remain stable, suggesting that these challenges are temporary rather than structural.
Looking ahead, SECURE is nearing completion of several major infrastructure projects that are expected to gradually boost earnings. As these assets begin contributing, growth in adjusted EBITDA could accelerate, particularly from 2026 onward.
Management continues to focus on high-return investments and expanding its network, strengthening its competitive position, and raising barriers to entry. A recovery in metals recycling could provide additional upside.
That said, SECURE stock has surged by more than 280% over the past 3 years, suggesting buying on pullbacks could offer a better risk-reward tradeoff.
Overall, SECURE’s stable cash flows with credible growth drivers make it an appealing long-term opportunity.
