In this article, we discuss the 10 Must-Buy Canadian Stocks to Invest in.

At a time when Wall Street is reeling from losses driven by technology, Canada’s stock market is displaying resiliency. Strength in producers of gold and basic materials helped the S&P/TSX Composite Index close firmly up on Thursday, although U.S. markets reported their fifth consecutive fall. Money is moving from the mega-cap tech companies that control the S&P 500 to industries with more conventional value plays, as the divergence illustrates.

Analysts observe that the sector mix of Canada’s index is much more diverse. The TSX is largely dependent on resources, financials, and industrials, in contrast to the U.S., where technology stocks can make up about 40% of the S&P 500. In addition to providing upside through commodities like gold and oil, which continue to be significant hedges in uncertain times, that structure protects it from some of the volatility associated with inflated tech giants.

With valuations already high, investors are anxious to see if robust capital markets and an economy that is still solid could sustain further expansion as Canadian banks prepare to report their earnings. Together with strong mining and energy performance, Canada’s market provides exposure to industries distinct from the American tech cycle. These circumstances can offer investors looking for must-have Canadian stocks that would give them a chance to diversify their portfolios with reputable names that have a solid track record of stability and long-term worth.

With this backdrop in mind, let’s shed light on our list of the 10 Must-Buy Canadian Stocks to Invest in.

Our Methodology

To curate our list of the 10 Must-Buy Canadian Stocks to Invest in, we used the Finviz screener to extract a list of Canadian stocks with significant upside potential. Next, we ranked these stocks in ascending order based on the number of hedge funds holding stakes in each stock. We relied on Insider Monkey’s database to assess hedge fund ownership in each stock, which tracks over 1,000 hedge funds.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10. Orla Mining Ltd. (NYSE:ORLA)

Number of Hedge Fund Holders: 18

Upside Potential: 36.84%

With strong upside potential and significant hedge fund interest, Orla Mining Ltd. (NYSE:ORLA) secures a spot on our list of the 10 Must-Buy Canadian Stocks to Invest in.

Orla Mining Ltd. (NYSE:ORLA) saw a boost on August 12, 2025, when Andrew Mikitchook of BMO Capital reiterated a Buy rating with a $14.46 price target, pointing to the company’s solid operations and promising future. Efficiency and output are anticipated to be driven by the Camino Rojo mine’s steady performance and ongoing efforts related to its open-pit operations. With earnings per share and all-in sustaining costs meeting projections, Orla’s second-quarter results were in line with expectations.

Orla Mining Ltd. (NYSE:ORLA)’s production outlook is further strengthened by strategic actions, such as the acquisition of Musselwhite and the advancement of the South Railroad project in Nevada. Orla Mining seems to be in a strong position for long-term growth, bolstered by debt reduction efforts and a healthy cash position.

A Vancouver-based business, Orla Mining Ltd. (NYSE:ORLA), is involved in the acquisition, exploration, development, and management of gold and base metal properties in Ontario, Nevada, Panama, and Mexico.

9. CGI Inc. (NYSE:GIB)

Number of Hedge Fund Holders: 22

Upside Potential: 28.44%

CGI Inc. (NYSE:GIB) is included in our list of the 10 Must-Buy Canadian Stocks to Invest in.

To accelerate Kesko’s digital transition, CGI Inc. (NYSE:GIB) formed a strategic alliance with Kesko on August 20, 2025. The partnership includes end-user, cloud, capacity, and integration services. CGI also helps Kesko’s retail network with digital development. The cooperation is indicative of a larger trend in the industry where businesses work together in close, risk-sharing partnerships to promote innovation and commercial growth.

Leena-Mari Lähteenmaa, President of CGI Finland, Poland, and the Baltics, remarked:

“We appreciate Kesko’s confidence in building a true and profound partnership, where the achievement of strategic goals is guided by joint metrics and investments.”

This deal demonstrates CGI Inc. (NYSE:GIB)’s expanding global impact in formulating digital transformation plans.

Founded in 1976, CGI Inc. (NYSE:GIB) is a leading global provider of business and IT consulting services, ranging from managed IT solutions and digital transformation to strategic consulting and systems integration.

8. B2Gold Corp. (NYSE:BTG)

Number of Hedge Fund Holders: 23

Upside Potential: 27.82%

B2Gold Corp. (NYSE:BTG) is included in our list of the 10 Must-Buy Canadian Stocks to Invest in.

After the company’s second-quarter results, Canaccord reduced its price target on B2Gold Corp. (NYSE:BTG) from $5.78 to $5.60 on August 15, 2025, while keeping a Buy rating. With impressive results at Fekola, Masbate, and Otjikoto, the quarter’s gold production of 229,454 ounces. The quarterly results were released on August 7, which exceeded projections. Operating cash flow was $301 million, while net income was $154 million, or $0.12 per share.

A feasibility study for the Gramalote Project, which has an NPV of $941 million, approval for an underground mining at Fekola, and the first gold pour at Goose Mine on June 30 are recent accomplishments. B2Gold Corp. (NYSE:BTG) announced a Q3 dividend of $0.02 per share and reiterated its 2025 projection of 970,000–1,075,000 ounces of gold.

Global gold producer B2Gold Corp. (NYSE:BTG) has active mines in Namibia, Canada, the Philippines, and Mali.

7. Gildan Activewear Inc. (NYSE:GIL)

Number of Hedge Fund Holders: 27

Upside Potential: 19.54%

With strong upside potential and significant hedge fund interest, Gildan Activewear Inc. (NYSE:GIL) secures a spot on our list of the 10 Must-Buy Canadian Stocks to Invest in.

With the announcement of a significant extension of its collaboration with S&S Activewear, Gildan Activewear Inc. (NYSE:GIL) granted the distributor exclusive rights to its portfolio of trademarks, which include Gildan, Comfort Colors, American Apparel, and Champion, in the Canadian imprintables market on August 6, 2025.

This agreement, which will take effect on December 28, 2025, aims to improve product availability and expedite ordering for Canadian consumers. Gildan Activewear Inc. (NYSE:GIL) also disclosed a parallel agreement that day that granted S&S the sole right to distribute its American Apparel® brand in the United States. The goal of the move is to increase sales and brand recognition through S&S’s wide-ranging U.S. network. By combining Gildan’s supply capabilities with S&S’s strong infrastructure, these partnerships strengthen Gildan’s position in North America and enable it to provide more scale, reach, and service.

With vertically integrated worldwide operations, Gildan Activewear Inc. (NYSE:GIL) is a top clothing manufacturer that sells sportswear, underwear, and socks under labels such as Gildan, American Apparel, Comfort Colors, and others.

6. IAMGOLD Corporation (NYSE:IAG)

Number of Hedge Fund Holders: 27

Upside Potential: 21.39%

IAMGOLD Corporation (NYSE:IAG) is included in our list of the 10 Must-Buy Canadian Stocks to Invest in.

Analysts took notice of IAMGOLD Corporation (NYSE:IAG) on August 18, 2025, when Bank of America Securities and Canaccord Genuity both reaffirmed their Buy ratings and price targets of $9.50 and $11.20, respectively. RBC Capital maintained a more cautious Hold rating with a $9.00 target earlier on August 12.

The divergent opinions come after IAMGOLD’s Q2 results from August 7, which showed that attributable production had reached 173,000 ounces. Côté Gold’s ramp-up to nameplate capacity and consistent output from Westwood and Essakane helped support this outcome. Due to strong gold prices, IAMGOLD Corporation (NYSE:IAG) is on track to meet its full-year target of 735,000–820,000 ounces, with first-half production of 334,000 ounces and second-half projections of 400,000–485,000 ounces.

The Canadian gold miner IAMGOLD Corporation (NYSE:IAG) operates mines in both North America and West Africa.

5. IMAX Corporation (NYSE:IMAX)

Number of Hedge Fund Holders: 28

Upside Potential: 28.47%

With strong upside potential and significant hedge fund interest, IMAX Corporation (NYSE:IMAX) secures a spot on our list of the 10 Must-Buy Canadian Stocks to Invest in.

A significant expansion agreement for five new IMAX with Laser systems around the United States was announced by IMAX Corporation (NYSE:IMAX) and Apple Cinemas on August 7, 2025, tripling the size of their existing agreement.

The forthcoming Riverview Plaza, expected to reopen as the largest downtown theater in the city in 2026, brings IMAX Corporation (NYSE:IMAX) back to Philadelphia for the first time since 2020. By 2027, three existing Apple Cinemas locations—including the well-liked San Francisco location, which was just reopened under Apple’s ownership—in Maine, New Hampshire, and California will also have IMAX with Laser enhancements.

With 130 new or enhanced system arrangements already announced in 2025, IMAX Corporation (NYSE:IMAX) is experiencing record momentum thanks to a roster of high-profile films and solid box office performance.

With its patented theater systems, software, and architecture, IMAX Corporation (NYSE:IMAX) is a world leader in immersive entertainment technology, providing state-of-the-art cinematic experiences in approximately 1,821 locations across 89 countries.

4. Restaurant Brands International Inc. (NYSE:QSR)

Number of Hedge Fund Holders: 32

Upside Potential: 20.82%

Restaurant Brands International Inc. (NYSE:QSR) is included in our list of the 10 Must-Buy Canadian Stocks to Invest in.

While keeping its Buy rating, Guggenheim increased its price target for Restaurant Brands International Inc. (NYSE:QSR) from $77 to $78 on August 13, 2025. The action comes after the company’s encouraging results driven by robust same-store sales at Tim Hortons in Canada and in overseas markets. In addition, Guggenheim slightly raised its EPS projections somewhat to $3.64 for 2025 and $3.92 for 2026, citing foreign exchange tailwinds as a key factor. Analysts noted challenges despite the upward revision, including missed unit growth targets and pressure from McDonald’s aggressive value plan in the second half of 2025. Nevertheless, Restaurant Brands International Inc. (NYSE:QSR) continues to provide strong financial stability with a consistent  11-year dividend history and a current yield of 3.8%.

Tim Hortons, Burger King, Popeyes, and Firehouse Subs are all owned and operated by Restaurant Brands International Inc. (NYSE:QSR), a quick-service restaurant company with operations worldwide.

3. TC Energy Corporation (NYSE:TRP)

Number of Hedge Fund Holders: 33

Upside Potential: 43.92%

With strong upside potential and significant hedge fund interest, TC Energy Corporation (NYSE:TRP) secures a spot on our list of the 10 Must-Buy Canadian Stocks to Invest in.

Lloyd Byrne, an analyst at Jefferies, kept his Hold rating on TC Energy Corporation (NYSE:TRP) on July 20, 2025, noting balanced risks in spite of the company’s better-than-expected quarterly results. Strong results across Power & Energy and gas pipelines in the United States and Mexico helped drive higher EBITDA.

Furthermore, future asset sales may benefit from regulatory clearance of tolls on the Southeast Gateway. However, there was only a slight increase in FY25 EBITDA estimate and no change in capital expenditure guidance, indicating little immediate upside. Before a more optimistic picture can develop, investors are now waiting for further information regarding TC Energy Corporation (NYSE:TRP)’s growth capital plan and impending strategic objectives.

Operating pipelines, storage facilities, and power generation assets throughout Canada, the United States, and Mexico, TC Energy Corporation (NYSE:TRP) is a North American energy infrastructure corporation.

2. Canadian National Railway Company (NYSE:CNI)

Number of Hedge Fund Holders: 45

Upside Potential: 63.31%

Canadian National Railway Company (NYSE:CNI) is included in our list of the 10 Must-Buy Canadian Stocks to Invest in.

Following the company’s Q2 2025 results, Bernstein SocGen Group maintained its Market Perform rating on July 23, 2025, but reduced its price target on Canadian National Railway Company (NYSE:CNI) from $114.21 to $107.70. Canadian National reported adjusted diluted earnings per share (EPS) of $1.35 on July 23, which was close to Bernstein’s C$1.85 projection and in line with expectations.

However, citing tariff headwinds and an unclear trade picture, Canadian National Railway Company (NYSE:CNI) lowered its earnings expectations for FY2025 and FY2026 by 3% and 5%, respectively. Though it emphasized CN’s distinct strategic role in connecting Canada’s northern energy assets with international markets—pointing to long-term growth potential despite near-term challenges—Bernstein cautioned that the stock might stay range-bound until policy clarity or trade remedies materialize.

Throughout Canada and the U.S., Canadian National Railway Company (NYSE:CNI) offers rail, intermodal, trucking, and supply chain services.

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.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.