11 Best Canadian Growth Stocks to Buy According to Hedge Funds

5. BCE Inc. (NYSE:BCE)

Number of Hedge Fund Holders: 25

3-year EPS growth: 28.53%

On February 6, Scotiabank lowered its price target on BCE Inc. (NYSE:BCE) to C$39.50 from C$40.25 while maintaining an Outperform rating, indicating that despite modest valuation adjustments, the firm continues to view the risk-reward profile favorably.

During its third-quarter 2025 results conference call, BCE Inc. (NYSE:BCE) reported a 1.3% increase in total revenue, supported in part by the acquisition of Ziply Fiber, and adjusted EBITDA growth of 1.5%, resulting in a 10-basis-point margin expansion to 45.7%—the strongest margin performance in over three decades. The company highlighted accelerating momentum in AI-powered solutions, with related revenue increasing 34% year-over-year, largely driven by organic growth from Ateko and Bell Cyber. These developments underscore BCE’s strategic pivot toward higher-value digital and cybersecurity offerings while maintaining stable core telecom operations. The combination of modest top-line growth, margin expansion, and emerging AI-driven revenue streams supports improving cash flow durability and strengthens the long-term investment case.

Founded in 1983 and headquartered in Verdun, Quebec, BCE Inc. (NYSE:BCE) provides wireless, wireline, internet, streaming, and television services to residential, business, and wholesale customers across Canada through its Bell Communications and Technology Services and Bell Media segments.