3 Canadian Stocks I’d Buy Before the Next Bank of Canada Move

With the Bank of Canada on hold, these three TSX names offer earnings power that doesn’t require perfect rate cuts.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 4, 4:10 pm EDT

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Key Points

TD is the steady anchor, with strong Canadian banking results and plenty of capital despite U.S. remediation overhang.
MCAN is a cheaper way to play improving mortgage demand, with growing assets and a meaningful stake in MCAP.
Nexus is a pure-play industrial REIT with high occupancy and room to lift rents, which could look better if rates stop rising.

The Bank of Canada just announced that it would hold the key interest rate steady, so investors might be thinking: now what? Before the next Bank of Canada move, I’d focus on stocks that can handle a murky rate backdrop without needing perfect conditions. That usually means a strong bank, a lender that can still earn well through shifting mortgage demand, and a real estate investment trust (REIT) with cash flow that could look more attractive if borrowing costs ease or even just stop climbing. So let’s consider two on the TSX today.

bank of canada governor tiff macklem — Governor Tiff Macklem; Source: Bank of Canada

TD

Toronto Dominion Bank (TSX: TD) remains one of Canada’s largest banks, with major operations in Canadian banking, U.S. banking, wealth, insurance, and capital markets. Over the last year, the story has centred on execution and rebuilding confidence. Raymond Chun stepped into the CEO role, TD stock laid out a refreshed strategy, and the bank kept working through its U.S. anti-money-laundering remediation.

The latest numbers were solid. In the first quarter of 2026, TD stock reported net income available to common shareholders of $4 billion, or $2.34 per diluted share, while adjusted diluted earnings per share (EPS) came in at $2.44. Canadian personal and commercial banking delivered record net income of $2 billion, up 12% year over year, and the CET1 ratio stayed strong at 14.5%. On valuation, TD stock still looks reasonable for a major bank, trading at about 12 times trailing earnings with a market cap near $246 billion. If the Bank of Canada cuts later this year, lending activity and sentiment could improve. If it stays put, TD stock still has the scale and earnings power to grind higher.

MKP

MCAN Financial Group (TSX: MKP) is a mortgage investment company that focuses on residential, construction, and commercial lending, while also benefiting from its strategic investment in MCAP. That gives it exposure to Canadian housing and mortgage demand without being just another big bank. Over the last year, MCAN has kept building its platform. It strengthened its leadership team in January, expanded product capabilities, and continued growing its uninsured residential mortgage business.

Its 2025 results showed a company that kept moving even as rates started to come down from prior highs. Net income came in at $74.9 million, or $1.89 per share, while assets under management (AUM) climbed 30% to $7.8 billion. Residential mortgage assets rose 26% to $4.6 billion, and income from MCAP increased 16% to $33.4 million. Credit losses did rise, but the impaired non-securitized mortgage ratio improved to 1.7% from 2.5% a year earlier. The stock looks fairly inexpensive, with a market cap around $991 million and a trailing P/E ratio near 13.6. If rate pressure eases and mortgage activity improves, MCAN could quietly do very well.

NXR

Nexus Industrial REIT (TSX: NXR.UN) owns industrial real estate across Canada, and over the last year it completed a major shift into a pure-play industrial real estate investment trust (REIT). Industrial space remains one of the more durable corners of commercial real estate, especially compared with older office and mixed portfolios. Nexus spent 2025 cleaning up the story, selling legacy assets, adding Montreal properties, and bringing new development projects into service.

The financial results suggest that work is starting to show through. For 2025, adjusted funds from operations (FFO) rose to $58.6 million from $53.7 million, while industrial same-property net operating income (NOI) increased 2.6%. Occupancy held at 96%, and the spread between market rents and in-place rents remained a healthy 18.7%, leaving room for future rental growth. Management expects mid-single-digit same-property NOI growth in 2026 and believes the payout ratio should move below 100% this year. With a market cap around $978 million and a trailing P/E near 13.1, Nexus still does not look expensive. In a market waiting on rate relief, that mix of income, industrial exposure, and improving fundamentals looks pretty attractive.

Bottom line

Put the three together, and the case is simple. TD stock gives you scale and stability. MCAN adds more direct upside to mortgage and lending trends. Nexus offers industrial real estate exposure with room for cash flow growth. No one knows exactly what the Bank of Canada will do next. But if you want to buy before that next move, these three Canadian stocks look like a smart place to start.