Canadian equities have staged an impressive rebound in recent weeks, with the S&P/TSX Composite Index climbing 11.3% from its March lows. Stronger commodity prices, resilient corporate earnings, and improving investor sentiment have supported the strong recovery. However, uncertainty remains, as persistent inflationary pressures, geopolitical risks, and fluctuating energy prices could continue to drive market volatility.
Against this backdrop, I believe the following three Canadian stocks are well-positioned to outperform this year. Backed by strong business fundamentals, resilient operating models, and attractive growth opportunities, these companies have the potential to deliver solid returns despite an uncertain market environment.
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Savaria
Savaria (TSX:SIS) is a global leader in accessibility solutions, designing, manufacturing, distributing, and installing products such as stairlifts, wheelchair lifts, elevators, pressure-management systems, and patient-handling equipment. Supported by its extensive manufacturing footprint and broad distribution network, the company serves customers across multiple international markets.
The aging global population continues to create a significant long-term growth opportunity for Savaria. To capitalize on this favourable demographic trend, the company is investing in the development of innovative products, the expansion of its manufacturing capabilities, and the enhancement of operational efficiency. In addition, Savaria’s strong financial position provides the flexibility to pursue strategic acquisitions that could broaden its market presence and strengthen its growth profile. Management also focuses on driving margin expansion through ongoing operational improvements.
Reflecting these initiatives, Savaria expects revenue to grow at an annualized rate of 12% through 2030, reaching approximately $1.6 billion while maintaining an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin above 20%. Despite these attractive growth prospects, the stock trades at a reasonable 20.5 times multiple of next-12-month earnings. The company also pays a monthly dividend of $0.05 per share, yielding 1.9% and making it an appealing long-term investment.
Fortis
Another stock that I am bullish on is Fortis (TSX:FTS), a regulated utility that provides electricity and natural gas services to approximately 3.5 million customers across Canada, the United States, and the Caribbean. Thanks to its low-risk transmission and distribution operations and predominantly regulated asset base, the company generates stable, predictable earnings that are largely insulated from economic cycles and market volatility. This resilience has enabled Fortis to produce reliable cash flows and consistently reward shareholders. FTS stock has delivered 52 straight years of dividend increases and currently offers a forward yield of 3.3%.
Looking ahead, rising energy demand across its service territories should continue to support growth. Fortis is advancing its $28.8 billion capital investment program, which expects to expand its rate base to $57.9 billion by 2030, representing annualized growth of approximately 7%. These investments should drive steady earnings and cash flow growth while supporting future dividend increases. Given its defensive business model, strong dividend track record, and visible growth opportunities, I believe Fortis is an excellent stock to own in an uncertain market environment.
Bank of Nova Scotia
Another stock I am bullish on is Bank of Nova Scotia (TSX:BNS), one of Canada’s largest financial institutions with a diversified portfolio spanning banking, wealth management, and capital markets across multiple countries. This diversification supports stable earnings and robust cash flows, enabling the bank to maintain an impressive dividend-paying record that dates back to 1833. The stock currently offers an attractive forward dividend yield of 4%.
The current interest-rate environment could also support Scotiabank’s profitability. With inflation remaining elevated in several regions, central banks may continue to take a measured approach to future rate cuts. Higher interest rates generally help banks maintain healthy net interest margins, thereby boosting earnings.
Meanwhile, Scotiabank continues to focus on optimizing its operations and capital allocation. As part of this strategy, the bank recently announced plans to acquire the remaining shares of Scotia Group Jamaica Limited that it does not currently own in a transaction valued at approximately $0.5 billion, with completion expected in the fourth quarter of this year. In addition, Scotiabank is enhancing shareholder returns through its share repurchase program, which authorizes the buyback of up to 15 million shares over the next 12 months.
Given its diversified business model, strong capital position, shareholder-friendly initiatives, and reliable dividend, I believe Scotiabank remains an attractive investment opportunity at current levels.
