10 Must-Buy Canadian Stocks to Invest in

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1. lululemon athletica inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 48

Upside Potential: 42.15%

With strong upside potential and significant hedge fund interest, lululemon athletica inc. (NASDAQ:LULU) secures a spot on our list of the 10 Must-Buy Canadian Stocks to Invest in.

On August 19, 2025, Wells Fargo reduced its price target for lululemon athletica inc. (NASDAQ:LULU) to $205 from $225, while keeping an Equal Weight rating in light of expected tariff issues. Analyst Ike Boruchow identified risks associated with the abolition of the de minimis exception, accelerated by an executive order issued on July 30 and is set to take effect on August 29.

The exception now permits lululemon athletica inc. (NASDAQ:LULU) to ship U.S. orders duty-free through its Canadian distribution centers, which Wells Fargo believes account for 50-60% of U.S. e-commerce sales. With tariffs rising above 30%, the firm forecasts a $0.90-$1.10 EPS headwind, putting greater pressure on margins than peers such as Tapestry. The policy change is a short-term setback for Lululemon’s U.S. expansion strategy.

lululemon athletica inc. (NASDAQ:LULU) is a global designer, distributor, and retailer of athletic clothes, footwear, and accessories, with a significant presence in North America and growing into new international markets.

While we acknowledge the potential of LULU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LULU and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Cheap Value Stocks to Buy Now According to Seth Klarman and 13 Hot Oil Stocks to Buy Now.

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