In this article, we will discuss the 10 Best Canadian Stocks to Buy for Long Term.

On April 18, Morgan Stanley’s Katerina Simonetti joined CNBC’s ‘Fast Money’ to talk about the state of the market and what she is looking at for both the near and long-term. Simonetti observed that while investors often appear to undermine market risks and move past uncertainty, the situation in the Strait of Hormuz remains a primary focus. Simonetti noted that news indicating a potential reopening of activity in the Strait has led to an appreciation in stock prices and a decline in oil prices. Despite this positive movement, she warned that the market is not yet out of the woods, though she characterized the current environment as an incredible buying opportunity. In her view, the recent downturn is a quintessential correction within a broader bull market.

Simonetti explained that this correction is defined by declining valuations occurring simultaneously with rising earnings and earnings expectations. Because market recoveries are typically rapid, she advised clients against staying on the sidelines in cash or being overly defensive, as doing so risks missing the rebound. She encouraged investors not to wait for an all-clear signal before reintroducing risk into their portfolios. Regarding asset allocation, she suggested that while the Mag 7 has seen a nice bounce due to strong cash flow, there are more remarkable opportunistic plays available in individual securities and sectors that have become undervalued, specifically financials, industrials, healthcare, and energy.

Simonetti also addressed the valuation of tech and communication services, which she currently ranks as equal weight. She suggested that while these sectors led the bounce from the bottom, they are now fully valued and may not offer the most exciting buying opportunities compared to financials or healthcare. She emphasized that being offensive in this market does not mean chasing the Mag 7. Instead, she advised identifying companies with strong pricing power that can generate revenue even if consumer sentiment is lower than expected or demand for their services decreases.

Our Methodology

We sifted through financial media reports to compile a list of Canadian stocks widely discussed for their long-term potential and then selected stocks with a 5-year revenue growth rate of at least 15%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on April 20. 

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10 Best Canadian Stocks to Buy for Long Term

10. MDA Space Ltd. (NYSE:MDA)

MDA Space Ltd. (NYSE:MDA)  is one of the best Canadian stocks to buy for long term. On April 13, MDA Space unveiled MDA MIDNIGHT, which is a specialized space control platform designed to defend and protect critical space infrastructure. The maneuverable spacecraft is engineered for defense organizations to detect, identify, and deter threats in an increasingly contested space domain. By combining high-reliability rendezvous and proximity operations/RPO with world-leading robotics, the platform turns space domain awareness into actionable defensive measures, including on-orbit surveillance and satellite refueling.

The initial mission for MDA MIDNIGHT focuses on low Earth orbit/LEO operations, with capabilities ranging from on-orbit satellite inspections to electronic countermeasure mitigation and the de-orbiting of non-operational assets. The platform uses MDA Space Ltd.’s (NYSE:MDA) extensive heritage in orbital robotics, including the MDA SKYMAKER and MDA AURORA satellite bus, to provide a mission-ready solution that can be rapidly deployed. Operational support will be provided by an experienced flight controller team with a history of over 100 successful free-flyer captures.

The launch of MDA MIDNIGHT aligns with growing global demand for bodyguard satellites to safeguard national security and economic prosperity. CEO Mike Greenley highlighted that the platform uses 40 years of robotics expertise and high-volume commercial production capacity to meet the urgent needs of national and international defense organizations.

MDA Space Ltd. (NYSE:MDA) is an aerospace & defense company that offers space technology solutions and services. The company provides advanced satellite communications, Earth observation data, and mission-critical robotics for government and commercial space exploration.

9. The Descartes Systems Group Inc. (NASDAQ:DSGX)

The Descartes Systems Group Inc. (NASDAQ:DSGX) is one of the best Canadian stocks to buy for long term. On April 14, Descartes Systems Group introduced the Descartes Fleet Data Intelligence platform, expanding the AI capabilities of its Global Logistics Network/GLN. This new platform uses ML and a specialized AI agent to transform vast amounts of operational execution data into actionable insights.

By applying AI to real-world logistics data, the system is designed to improve on-time delivery, ensure service level compliance, and reduce the overall cost per delivery for businesses operating private or dedicated fleets. The platform debuts René, an AI agent that allows dispatchers and operations leaders to analyze fleet performance through natural language queries.

René can investigate real-time issues (such as identifying the root causes of overtime or service risks) and uncover systemic inefficiencies by analyzing long-term trends, like consistent route deviations. Additionally, new ML capabilities have demonstrated the ability to increase route density by up to 30% in early trials by generating highly accurate service time predictions based on variables like product type, geography, and vehicle constraints.

The Descartes Systems Group Inc. (NASDAQ:DSGX) is a global logistics technology solutions company that offers a range of solutions, including transportation management; customs and regulatory compliance; routing, mobile, and telematics; shipping, and fulfillment; broker and forwarder enterprise systems; global trade intelligence; and B2B messaging and connectivity services.