Air Canada (TSX:AC) has been through a lot in the last few years. The pandemic was the biggest blow, but today, the airliner continues to have to fend off different challenges. As a result, Air Canada’s stock price remains below $20.

What should investors do with Air Canada stock? Is the recent drop in Air Canada’s (AC) stock price a good opportunity to buy? Please read on as I explore these questions.

Air Canada faces major headwinds

Air Canada is facing mounting difficulties. The Iran war, which began on February 28, has affected Air Canada in more ways than one. Flights to and from the Middle East are heavily impacted. Also, the sharp rise in oil prices has affected Air Canada’s single most important cost of doing business — jet fuel.

The price of oil is trading at just under $100 at this time. This is a sharp rise from prices of below $60 at the beginning of the year. While Air Canada has stated that 17% of its 2026 jet fuel purchases are hedged at 69 cents, this is a big problem for the airliner. In March of 2026, jet fuel prices had soared to $1.37 per litre. Jet fuel accounts for almost 25% of Air Canada’s operating expenses.

In addition to this, labour costs have also been rising. This is not a new concern but it’s one that lingers. Air Canada’s cost structure is rising. This means that is cost per available seat mile, or CASM, is facing further pressures. In Air Canada’s latest quarter, its adjusted CASM came in at 15.34 cents, 2% higher than the prior year.

Management’s guidance for CASM in 2026 is between 15.05 and 15.35 cents. This guidance was before the sharp rise in oil prices and the trend was already up.

Recent results show strength

Air Canada’s latest quarterly result showed strength in demand, as travel plans seemed to be un affected by economic uncertainties. In fact, Air Canada’s fourth-quarter performance showed record performance that was backed by a very strong demand environment. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $867 million in the quarter. This equated to a very strong 15% margin and it was accompanied by a strong operating cash flow result of $423 million.  

At this time, it appears that Air Canada’s current challenges will continue to override the solid business strategy that the airliner has been implementing. In the long run, Air Canada’s cost cutting strategy (which has already yielded $150 million in annual cost savings), its network enhancements and fleet upgrades will increase the airliner’s value. For example, Air Canada recently purchased eight Airbus A350-1000, a large widebody aircraft that has 40% more area for premium-category seating. The premium category is the fastest-growing revenue category.

Looking ahead, Air Canada’s strategy is being adjusted once again to account for the geopolitical conflict. The airliner has done a great job in increasing its flexibility over the last few years and this is serving it well now. Air Canada’s vast scale, strong international network, and revenue diversity will likely allow it to make necessary adjustments to whether that storm as well as it can.

However, the airliner’s response to rising oil prices has been to increase ticket prices. This places Air Canada’s robust demand situation at risk.

The bottom line

AC’s stock price remains below $20 and continues to trend lower. The US/Iran conflict has placed an additional strain on Air Canada’s business. Although the airliner has been doing all the right things to combat the different headwinds it has faced, I think that there’s too much risk in Air Canada stock today. I would watch the situation and look to buy if and when the stock falls lower. At some point, this will be too cheap to ignore.

The post Is Air Canada Stock a Buy After Falling 8.4% This Year? appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has no position in any of the stocks mentioned. The Motley Fool recommends Air Canada. The Motley Fool has a disclosure policy.

There are many different ways to help set yourself up financially. Some of these ways are hard and require a lot of work. Others are too expensive. Brookfield Infrastructure Partners LP (TSX:BIP.UN) is a stock worth considering for this purpose.

Let’s look into why Brookfield Infrastructure stock is a stock to buy and hold for the long term.

Brookfield – At the right place at the right time

Brookfield Infrastructure Partners is a global infrastructure company. It owns and operates long-life assets in the utilities, transport, midstream, and data industries across the globe. These industries are essential, and this makes Brookfield well-positioned in the infrastructure space. As you can see from BIP.UN’s stock price graph below, it has been a steady performer.

There are three major trends that are happening right now – digitization, decarbonization, and deglobalization. As per Brookfield’s management, Brookfield is “benefitting from an infrastructure investment super-cycle that’s expanding in both scope and scale.”

Industries are rapidly expanding in response to these trends. Let’s take the artificial intelligence, or AI, boom. This rapid rise in connected machines and AI-enabled systems and processes will only be possible if the infrastructure is there. This will require the building and maintenance of numerous large data centres in the different hubs of the world.

Unmatched access to funds

Brookfield Infrastructure Partners is a global organization. In fact, it’s one of the few pure-play, publicly-traded, global infrastructure vehicles. As industries expand in response to these major trends, the infrastructure required will be required globally. This is a risky and expensive proposition.

As part of the broader Brookfield company network, Brookfield Infrastructure Partners has access to a leading asset management group. This leads to origination opportunities and participation in consortiums that help secure contracts and funding.

At this time, Brookfield Infrastructure has record liquidity of $6 billion, leaving it armed with the flexibility to participate in the expected growth.

Brookfield – A history of excellence

It is precisely Brookfield’s track record and operating practices that make it a stock to own for the long run – a stock that will set you up for life.

For example, all of Brookfield’s development projects are underpinned by long-term contracts – there is no speculative building. In addition to this, Brookfield deals with the strongest investment grade parties. Also, the company focuses on top-tier locations, and finally, it employs a self-funded model that locks in attractive economics.

Also, during the fourth quarter of 2025, Brookfield showcased its strength as cash flows and earnings increased significantly. This led to a 6% distribution increase, which marked the 17^th consecutive year of distribution increases of at least 5%. Brookfield’s payout ratio currently stands at a very healthy 66%.

What we want is stability, growth, and resilience. Brookfield Infrastructure Partners has all of that. All of this makes Brookfield trustworthy of shareholders’ investment.

The bottom line

Brookfield Infrastructure is a top-quality stock that has the benefit of scale and strong access to capital. This will enable it to benefit from the strong long-term infrastructure trends that are in play today.

BIP.UN’s stock price is trading below $50 and is yielding a very generous 5%.

The post Could Buying Brookfield Infrastructure Stock Set You Up For Life? appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

Are you looking for defensive stocks for your portfolio? Have you considered Canadian utility stocks? Contrary to some investors’ beliefs, these stocks are anything but boring. In contrast, they are reliable dividend payors that have proven to be a resilient and essential part of a portfolio.

In this article, I’ll discuss the utility stock sector and where it currently stands. I’ll also highlight two of my favourite Canadian utility stocks, Enbridge Inc. (TSX:ENB) and Fortis Inc. (TSX:FTS).

Increasing demand outlook for utilities

One of the most lucrative trends in recent years has been the consistently rising demand for power. And 2026 will likely not be an exception. But what are the factors that are driving this demand and can we count on this trend to continue in 2026?

The Canada Energy Regulator (CER) has high expectations for electricity demand in 2026 and beyod, forecasting electricity to become increasingly central for powering Canadians’ lives. In fact, the federal agency expects electricity demand to grow between 30% and 50% by 2050.

This sentiment is being echoed by what utility companies are experiencing and seeing. Fortis stock is one of North America’s leading utilities stocks. The company also forecasts that electricity will continue to be in high demand as electrification of industries continues in response to climate goals and as demand from sources like data centres surges.

This bullish demand environment is reflected in Fortis’ results. In the fourth quarter of 2025, Fortis reported adjusted earnings per share (EPS) of $0.90. This was 8.4% higher than last year and it came in above expectations. Also, 2026 represented the 52^nd consecutive year of dividend increases, further highlighting the strength and stability of this utility stock.

In 2026, Fortis will continue to execute on its new $28.8 billion five-year capital plan. This plan will focus on highly executable and low risk projects. As you can see from Fortis’ stock price graph above, this Canadian utility stock has provided its shareholders with consistently strong returns over many years.

Interest rates support utility stocks

Utility stocks in Canada carry notoriously high debt levels – this is something that comes with this highly defensive and capital-intensive business. Interest rates, therefore, become a significant factor to consider when evaluating Canadian utility stocks.

Today, interest rates remain on the low end compared to history. This is clearly good for utility stocks. Enbridge and Fortis are benefitting from this interest rate environment. In its latest meeting, the Bank of Canada held interest rates steady at 2.25%. This decision was the Bank’s response to conflicting forces – signs of weakness in the Canadian economy on the one hand and the inflationary pressure of surging oil prices on the other.

For Fortis and Enbridge, these low interest rates are good. As you can see from Enbridge’s stock price graph above, Enbridge stock has been benefiting from low interest rates and a strong demand environment for many years. One of Enbridge’s main goals in recent years has been to manage its debt load. Currently, Enbridge has a debt-to-total capitalization ratio of 62%, and its debt-to-earnings ratio stands at 4.8 times. This heavy debt load is funding its major capital investment plans, which are in response to strong demand in all of its segments.

These projects are essential to meet the rising energy demand.

The bottom line

Utility stocks in Canada and North America are an attractive sector for investors to focus on in 2026. This is due to a very bullish outlook for utilities, combined with a constructive interest rate environment. Fortis and Enbridge stocks are two of the premier names in this space. I would recommend them, as macro-economic risks are rising, and defensive utility stocks will likely provide strong and steady returns once again this year.

The post What to Know About Canadian Utility Stocks in 2026 appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has a position in Enbridge. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

For long-term investors looking to ride out market volatility, Toronto-Dominion Bank (TSX:TD) is worth considering today. Over the years, this Canadian dividend stock has been supported by a solid track record of both dividend growth and share price appreciation.

After a period of uncertainty related to regulatory issues and big restructuring charges and fines, TD Bank has made significant strides in protecting and advancing its business. In fact, a strong balance sheet and strong growth trends have combined to send TD Bank stock surging almost 50% in the last year. When markets get rough, it is this strength that investors will be able to take comfort in.

Let’s take a closer look at why TD Bank stock is a Canadian dividend stock to buy today.

TD’s first quarter at a glance

The bank’s first quarter can be summarized in two words – momentum and value. Records were broken in TD’s Canadian personal and commercial banking, insurance, and wholesale banking. These records were driven by a strong macro environment, with strong deposit and loan volumes, as well as solid expense management.

All told, TD Bank stock reported adjusted earnings per share (EPS) of $2.44, which was well above analyst estimates, which were calling for EPS of $2.26. This was 20% higher than the same period last year and a record for the bank. Investors have driven TD Bank stock higher in the last year in response to this momentum.

A Canadian dividend stock that stands the test of time

In the last 30 years, TD Bank stock has paid out a dividend. This dividend has grown more than 1,500% and it has been reliable through the good and bad times. Reflecting on the last 30 years, a few major crises easily come to mind.

In 2000, the tech, or dot-com, bubble was a crisis that caused major stock market volatility and financial troubles. Then in 2008, we had the global financial crisis, when we witnessed the demise of Lehman Brothers. This liquidity crisis triggered a stock market crash. Finally, we had the pandemic in 2020, which also triggered a stock market crash.

Through it all, TD Bank stock continued to be a beacon of strength. As you can see from TD Bank’s stock price graph above, the stock continued to perform well over the long run despite these disruptions. It’s evidence of the bank’s reliability and resilience in the face of chaos. This performance demonstrates the value of this Canadian dividend stock when markets get rough.

Looking ahead

The momentum at TD Bank continues. TD is targeting 6% to 8% EPS growth in 2026, a growth target that management thinks they can beat. Also, TD has a 13% ROE target for 2026. This is being driven by TD’s expense reduction program as well as its capital position and balance sheet. Simply put, expenses are falling and returns are rising.

Looking even further ahead, TD Bank is targeting ROE of 16% in 2027 as the bank further improves its capital position and as it continues to reduce expenses.

The bottom line

TD Bank stock is a prime Canadian dividend stock for investors who would like a reliable dividend and solid long-term growth. Buy this stock in preparation for the next wave of stock market turmoil.

The current dividend yield on TD Bank stock is 3.3%.

The post The Canadian Dividend Stock I’d Lean on When Markets Get Rough appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The Bank of Canada held its key interest rate steady at 2.25% on Wednesday. The reasons that the bank cited for this included the war in Iran, the spike in oil prices, and the accompanying economic and political risks.

So far, the TSX has fallen 11% since the beginning of March, which is a lot. One TSX stock that I think investors should buy after the Bank of Canada held its interest rate unchanged is Telus (TSX:T).

Telus: A once-in-a-lifetime opportunity

It’s no secret that Telus stock has had its share of turmoil in the last while. This all culminated in Telus pausing its dividend-growth program in December 2025, sending investors and analysts into a frenzy. Telus’s stock price has fallen 37% since its 2023 highs.

The state of the telecom industry in Canada has changed. After the government opened it up to competition, major telecoms are dealing with falling average revenue per unit, or ARPU, in their mobile businesses and general competitive pressures. But for Telus, there’s so much more to the story. Years ago, Telus embarked on a plan to diversify its business. Telus Health and Telus Digital were the products of this plan.

Today, both of these segments continue to grow at double-digit rates. And both of these segments offer Telus the potential for future monetization or cash inflows. In fact, Telus is actively looking into monetization strategies, including possible investment from future partnerships.

Telus’s stock price is cheap

Telus’s debt-to-capital ratio is currently high at 65.5%, and its interest expense was $1.3 billion in 2025. That’s high. It’s a good thing for Telus stock that the Bank of Canada held its interest rate steady, as low interest rates clearly benefit the company. This, combined with any progress that Telus makes on debt reduction, will benefit Telus stock. The extra cash from the company’s monetization activities would contribute to Telus’s debt reduction and balance sheet strengthening.

As you know, Telus’s stock price has fallen under the weight of all of these risks. Today, Telus stock is yielding a very generous 9.25%. This yield is supported by a strong cash payout ratio of 70% and strong free cash flow growth. And this, in my view, makes it a stock for long-term investors to consider.

Yes, Telus stock is in a critical moment that is not without risks. The 9.25% yield does highlight this risk. But, if we can reserve a small weighting for Telus stock, it appears to me like this stock has a strong risk/reward profile.

As we look ahead, it’s clear that the company is taking steps to improve its financial health, as management is aggressively pursuing debt reduction. The company has a plan to reduce its leverage ratio to three times by the end of 2027 from 3.4 times at the end of 2025. This compares to a ratio of 3.9 times at the end of 2024.

And, of course, in the meantime, the Bank of Canada’s decision to hold interest rates steady certainly helps.

Recent results show strength

Free cash flow generated in 2025 totalled $2.2 billion. This was 11% higher than the prior year and a record for the company. 2026 guidance is equally positive, with revenue and earnings before interest, taxes, depreciation, and amortization growth of 2% to 4% expected.

Finally, Telus stock is expected to generate $2.4 billion in free cash flow in 2026. This is 10% higher than 2025.

The bottom line

With total debt of approximately $30 billion and an interest expense of over $1.3 billion, Telus stock is surely a beneficiary of the Bank of Canada’s recent interest rate decision. Looking ahead, Telus can be expected to continue to drive free cash flow growth through managing capital expenditures, driving growth in its telecom business and through its monetization strategies.

This will enable the company to improve its balance sheet and its financial health, and as a result, I would expect Telus stock to reflect this and move higher. This is a long game, but for patient investors willing to stay the course, it might just be one of the best dividend bargains out there today.

The post Bank of Canada Hold: 1 TSX Stock I’d Buy Now appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has a position in TELUS. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

The TSX Index has been drifting from its highs in the last month or so. It’s not surprising and not difficult to find the reasons why. The Iran war, geopolitical turmoil, and economic risks have really been mounting for quite some time now. This is making it all the more important to focus on top stocks – those stocks that show resilience and staying power.

Without further ado, here are three top Canadian stocks to buy now. All of these top stocks have attractive dividend yields and resilient businesses to position investors with stability and income.

BCE

As one of Canada’s top telecom companies, BCE Inc. (TSX:BCE) has been through a lot. While it was once an indisputable leading dividend payor, BCE stock has buckled under the pressure of a changing regulatory environment. More competition has effectively sent mobile pricing lower, eating away at BCE’s mobile business. BCE’s stock price has been cut in half since 2023.

Today, BCE stock is yielding an attractive 4.9%. BCE’s stock price has settled, and the company is positioning itself for stability and growth. An intense round of cost cutting, layoffs, and a renewed focus on growth is positioning BCE for a recovery.

Looking ahead, current expectations are calling for earnings per share (EPS) of $2.50 to $2.65 in 2026. This represents a decline of 5% to 11%, due to higher depreciation, amortization, and interest expense. BCE stock is trading at 14 times earnings at the midpoint of the guidance EPS range.

Brookfield Infrastructure Partners

Brookfield Infrastructure Partners LP (TSX:BIP.UN) is a 5% yielding top Canadian stock that has a history of excellence and a strong future.

This a global infrastructure company. It owns and operates long-life assets in the utilities, transport, midstream, and data industries across the globe. These industries are essential and fast-growing, and this makes Brookfield well-positioned in the infrastructure space.

In the fourth quarter of 2025, Brookfield reported earnings per share (EPS) of $0.90 and a 10% increase in funds from operations to $2.6 billion. Brookfield has paid a growing dividend for 17 consecutive years. The company’s payout ratio is a healthy 66% and it’s armed with record liquidity of $6 billion.

This positions Brookfield to pursue the growth that it’s seeing due to digitization, decarbonisation, and deglobalization.

Enbridge

The final top stock that I’d like to discuss is Enbridge Inc. (TSX:ENB). Enbridge stock is one of Canada’s leading energy infrastructure companies. With a highly predictable and steady cash flow profile, Enbridge is a top stock that offers a dividend yield of 5.3% and a low-risk business.

Enbridge’s top stock status is courtesy of its low-risk, essential business. It consists of midstream assets such as pipelines, natural gas storage assets, as well as utility assets. Enbridge’s midstream assets are low-risk, as they’re covered by long-term take or pay contracts. The utility assets are low-risk because the utility business is regulated.

Enbridge stock is a top stock to buy today because it’s a defensive stock in a defensive business. This can provide investors with a shelter from all the risks that are out there today.

The bottom line

With the risks in the market and the economy intensifying, I would not hesitate to load up my portfolio with top Canadian stocks like those that I’ve discussed in this article.

The post Top Stocks to Double Up on Right Now appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has positions in BCE and Enbridge. The Motley Fool recommends Brookfield Infrastructure Partners and Enbridge. The Motley Fool has a disclosure policy.

The Tax-Free Savings Account, or TFSA, was first introduced in 2009. This account is a great way to shelter one’s investment returns from taxes. The cumulative TFSA contribution limit currently stands at $109,000, and it may differ depending on the year you turned 18.

TFSA investing

The first golden rule of TFSA investing is to maximize your TFSA contributions. Know your TFSA limit and then just go for it. Make it a priority — an essential expense, if you will. The idea here is that in order to accumulate wealth, we, of course, have to sacrifice.

The second golden rule that TFSA millionaires usually live by is to invest their highest potential return stocks within their TFSAs. There’s a lot of tax savings to be had with the highest growth and the highest-yielding stocks. Accumulating them in your TFSA maximizes tax savings.

In this article, I’ll discuss the investing strategies that could lead to TFSA millions.

Own a basket of high-growth stocks

Investing in high-growth stocks introduces a higher risk level for TFSA investors. Yet, this risk is necessary if we want to reach our goal of TFSA millions. Thankfully, there are steps to take to mitigate this risk.

Firstly, own a basket of high-growth stocks in order to maximize your chances of one of them working out. The truth is, even the most well-thought-out investment theses can go wrong. There are no guarantees. I personally own a few high-growth potential stocks. I’ll talk about two of them here.

Celestica (TSX:CLS) is an electronic manufacturing services company that focuses on value-added services and innovation to drive its value and growth. Today, the company is benefitting from the artificial intelligence (AI) boom, as it’s driving the next long-term technology investment cycle.

Celestica’s stock has skyrocketed over the last five years — up 4,394%. I only bought 300 shares back then, which means that I invested $2,500. Today, it’s worth $115,000. Had I invested $25,000 in Celestica, that would be worth $1 million today.

Be patient

Patience is one of the most underrated but most valuable qualities that investors must have if they want to be successful. This is something that all TFSA millionaires surely have.

If you look at Celestica’s stock price performance, you will see that Celestica’s stock did nothing for a long time. Then, in 2024, it started to rise to new heights. Patience was required. Also, patiently holding high-yield stocks is a way to accumulate wealth through consistently growing dividends that offer the potential for compound returns over the long term.

Another high-growth potential stock that I bought is Ballard Power Systems (TSX:BLDP). I bought it below $5.00, and after a roller coaster ride, Ballard Power Systems stock remains below $5.00. This is another example of where patience will hopefully pay off.  

Ballard Power’s zero-emission fuel cells are enabling the electrification of heavy-duty vehicles such as buses, trains, and commercial trucks. After years of difficulty posting growth, the fourth quarter of 2025 was a breakthrough. Ballard’s heavy-duty mobility segment revenue increased 70% to $28.6 million. And its total revenue increased 37% to $33.6 million.

Ballard Power Systems stock has risen 36% since the release of these results a week ago. Looking ahead, we can expect Ballard to continue to right-size its business, becoming increasingly profitable in the process. In the fourth quarter, Ballard reported operating cash flow of $11.4 million compared to cash use of $24.4 million in the same period last year.

The bottom line

Maxing out of your TFSA contribution limit and investing in the right high-growth/high-return stocks are both key to becoming a TFSA millionaire. Adopting the right investment strategy will help us get there. As discussed in this article, this can be done with risk management strategies, patience, and discipline.

The post The Little-Known Secrets Behind Every TFSA Millionaire appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has positions in Celestica and Ballard Power Systems. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.

The best Canadian stock to own in times of market volatility is the one that has the most stable earnings and cash profile. It’s the one that has little sensitivity to market and economic turmoil. And it’s the one that has proven to be a dependable and reliable steward of shareholder capital.

What is volatility?

Market volatility is a measure of how much a stock or the market fluctuates over time. High volatility means that prices and/or returns fluctuate sharply over a short time period. Low volatility means that prices and/or returns stay more constant, changing gradually and remaining relatively steady.

This knowledge can help us in our investment decisions today, but how? Well, I’m of the belief that the stock market is vulnerable to weakness in the year ahead. I am therefore favouring stocks that have demonstrated less volatility in their price and returns. This way, I can shelter my portfolio somewhat from the storm ahead.

The best Canadian stock to own

Given this backdrop, I’m reducing exposure to highly volatile stocks and increasing my exposure to low-volatility stocks. I run the risk of missing out on upside if I’m wrong about where I think the market is heading. But, I’ll gladly miss out on this because, by my calculation, the risk/reward trade-off of owning volatile stocks is not in our favour at this time.

Fortis Inc. (TSX:FTS) is one of the best Canadian stocks to buy today in order to shelter your portfolio when volatility returns. The upward swings of the market have been fantastic over the last few years — the downward swings can be equally dramatic.

Fortis is one of North America’s leading utility companies, with nine regulated utilities in Canada, the U.S., and the Caribbean. This is a low-risk business that benefits from stable cash flows and earnings due to its regulated nature. In good and bad economies, Fortis maintains its predictable and resilient revenue and earnings profile.

Fortis’s latest results

In Fortis’s latest results, the company reminded me once again why it’s the best Canadian stock to own in uncertain and volatile times. Adjusted earnings per share (EPS) came in at $3.53 in 2025, which was 7.6% higher than the prior year and almost 5% higher than expectations.

These results were driven by strong rate base increases and strong cost discipline. This performance supported a 4% dividend increase, which Fortis implemented as part of its dividend-growth plan. In fact, Fortis now has 52 consecutive years of dividend increases under its belt.

Looking ahead, Fortis’s plan is to continue to do what it has done throughout its history — drive company and shareholder returns. The company will do this by executing its new record $28.8 billion five-year capital plan. This is expected to drive 7% annual average rate base growth as well as dividend growth of between 4% and 6% through 2030.

The bottom line

The best Canadian stocks to buy if volatility returns and sends the market lower are steady and predictable stocks like Fortis. Consider adding it to your portfolio today as a precaution.

The post The Best Canadian Stock to Own When Volatility Returns appeared first on The Motley Fool Canada.

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Fool contributor Karen Thomas has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

The TSX is still trading near all-time highs. If you’re like me, maybe you’re hesitant to pay up for stocks at this time. Maybe you’re looking for some undervalued Canadian stocks to buy. As they say, there’s always an opportunity to buy undervalued stocks in every market.

In this article, I’ll discuss three undervalued Canadian stocks to buy without delay, because they won’t be this way forever.

BCE

As one of Canada’s telecom giants, BCE (TSX:BCE) has felt the sting of a changing industry. Increased competition, lower mobile prices, and a general sense of diminishing returns have hit BCE stock. As you can see from the graph below, BCE’s stock price has been hit hard, down more than 50% from its 2022 highs.

This is something that few would have predicted. Yet, the stock was taken down. And it remains below $40 today. But BCE stock has responded to its new, more difficult environment. It has cut costs, reduced the capital intensity of the business, and is pursuing new avenues of growth.

All told, current expectations are calling for earnings per share (EPS) of $2.50 to $2.65 in 2026. This represents a decline of 5% to 11%, due to higher depreciation, amortization, and interest expense. Trading at 14 times earnings at the midpoint of the guidance EPS range. Yet, this is not an easy situation. Growth is challenged, and the pressure on BCE’s mobile business is real. But this undervalued Canadian stock is likely to benefit from its leading fibre network, its Ziply acquisition, artificial intelligence solutions, and its leaner, stronger financial makeup in the coming years.

Cineplex

As one of Canada’s leading entertainment companies, Cineplex (TSX:CGX) has a dominant market share in the movie exhibition industry. So why are its shares so cheap? Well, the problem here is the movie exhibition industry. It’s hit some real challenges with the advent of streaming, and, of course, the pandemic hurt as well.

Today, attendance at Cineplex is low relative to historical levels, but it’s also quite volatile. What this means to me is that consumers still like to attend movie theatres, they just need quality content to get themselves there. Attendance increases with the right content. The fact that Netflix has walked away from its proposed Warner Brothers acquisition is a positive for Cineplex, its content, and the movie exhibition industry in general.

In Cineplex stock’s latest quarter, the company reported another disappointing result, with EPS coming in at $0.01 versus expectations that were calling for $0.19. Cineplex’s free cash flows paint a better picture for the company. In 2025, free cash flow came in at $92 million, 15% higher than the prior year. For this year, analyst expectations are calling for Cineplex stock to report EPS of $0.39 and for 2027, Cineplex stock is expected to generate $0.71 in EPS.

CGI Inc.

Finally, CGI (TSX:GIB.A) is another undervalued Canadian stock. CGI is a leading information technology (IT) company that’s diversified across industries served and countries. It’s a stock that’s also been hit hard in the last year — down 34%. Yet, its results remain impressive.

In the company’s latest quarter, the fourth quarter of 2025, revenue increased 9.7% to $4.01 billion. Also, adjusted EPS increased 10.9% versus the prior year, and operating cash flow came in at $663 million or 16.5% of revenue. Finally, CGI’s backlog currently sits at a very healthy $31.32 billion. Despite demand concerns due to uncertainty in its U.S. government business and the economy, the business remains strong.

CGI stock remains one of the best tech stocks to buy for long-term returns.

The bottom line

Undervalued Canadian stocks don’t stay undervalued forever. Consider buying these three stocks for long-term wealth creation. “Buy when everyone is selling.”

The post 3 Undervalued Canadian Stocks to Buy Immediately appeared first on The Motley Fool Canada.

More reading

• Transform Your TFSA Into a Cash-Creating Machine With $10,000
• 1 Canadian Stock Down 33% to Buy Immediately for Life
• BCE’s Dividend Is Under the Microscope – Here’s What I See
• The Very Best Canadian Stocks to Hold Forever in a TFSA
• BCE or Telus: Which TSX Dividend Stock Is a Better Buy Now?

Fool contributor Karen Thomas has no position in any of the stocks mentioned. The Motley Fool recommends CGI and Netflix. The Motley Fool has a disclosure policy.

A growth stock is a stock in a company that is expected to grow at a faster rate than the market. These stocks typically trade at what looks like expensive valuations, and they are typically volatile and do not pay dividends.

In this article, I’ll review a growth stock that continues to grow rapidly, while driving cash flows and earnings higher.

What is this growth stock all about?

Well Health Technologies Corp. (TSX:WELL) is an omnichannel digital healthcare company, with a network that includes primary, specialized, and diagnostic healthcare services and facilities.

In the five years ended 2024, Well Health Technologies has grown at a rapid pace. Revenue increased more than 1,700% to $919 million. And adjusted net income increased to $32 million from a loss of almost $4 million. Finally, earnings per share (EPS) increased to $0.13, up from net losses in 2020.

In the last year, Well Health’s stock price has declined more than 20%. Yet, the company continued to grow rapidly in the first nine months of 2025. During this time period, revenue increased 48% to just over $1 billion, and adjusted net income increased almost 200% to $75 million.

Well Health – Driving cash flows

Today, the company’s strategy is to simplify and focus. This means divesting of its US assets, and focusing on the Canadian business. To this end, Well Health will complete a strategic alternatives process for its US care delivery business in 2026.

This will simplify the business and free up capital to be invested in the higher-growth Canadian businesses. The cash flows received from this process will complement the cash flows that Well Health is generating on a quarterly basis.

In the last three quarters of 2025, Well Health reported positive operating cash flow excluding changes in working capital of $110 million. In the third quarter, Well Health’s free cash flow came in at approximately $39 million. This is not a given with companies that are in the rapid growth phase. We can expect cash flows to continue to ramp up as Well Health continues to drive growth and increase its focus on the Canadian business.

Valuation

A growth stock is usually not cheap based on current earnings numbers. But based on adjusted earnings expectations for 2025, Well Health’s valuation actually looks quite attractive. Trading at 10 times adjusted earnings, Well Health’s stock price on the TSX is clearly not giving the company credit for its successful execution and financials.

This lack of recognition by investors is understandable in a sense, as there’s uncertainty related to Well Health’s efforts to monetize its US businesses. The company could get less than it’s expecting, and nothing is certain until a deal is finalized. But this is the opportunity. If Well Health continues along its rapid growth trajectory, the company will continue to thrive well into the future.

The bottom line

Well Health stock on the TSX is a growth stock to consider adding as it’s set to gain momentum in 2026 and beyond. It’s a big year – if Well Health can finalize its strategic divestitures in 2026, the risk premium on the stock will decline significantly, thus driving Well Health’s stock price higher.

The post 1 Growth Stock Set to Skyrocket in 2026 and Beyond appeared first on The Motley Fool Canada.

More reading

• These 3 Canadian Stocks Could Triple in 5 Years
• 2 Dirt Cheap Stocks to Buy With $1,000 Right Now
• 1 Canadian Stock Ready to Rise in 2026
• 3 Canadian Stocks Ready to Surge in 2026
• 3 Canadian Growth Stocks I’d Add to Any TFSA in 2026

Fool contributor Karen Thomas has a position in Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.