9 Best Up and Coming Canadian Stocks to Buy

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1​. Algoma Steel Group Inc. (NASDAQ:ASTL)

Number of Hedge Fund Holders: 31

​Algoma Steel Group Inc. (NASDAQ:ASTL) is one of the Best Up and Coming Canadian Stocks to Buy. Algoma Steel Group Inc. (NASDAQ:ASTL) plunged around 8% on Monday as Bloomberg reported that the company will lay off 1,000 employees. The company will also close its blast furnace in northern Ontario within months due to the losses incurred from US tariffs.

The report further highlighted that the company will shut down its coke-making operation as it transitions towards electric-arc furnaces by 2026. According to Bloomberg, management noted that the 50% US tariffs on foreign steel have fundamentally changed the market dynamics and have limited the company’s access to the US market.

​In other news, earlier on November 26, the Prime Minister of Canada, The Rt. Hon. Mark Carney, announced new measures to protect Canada’s steel and lumber industries. The government plans to do so by limiting the import of foreign steel to ensure a better domestic market for producers. For instance, the government announced its plan to tighten the tariff rate quota levels for non-free trade agreement partners from 50% to 20% of the 2024 levels. Moreover, they also plan to impose a global 25% tariff on targeted imported steel-derivative products.

​Analysts believe that these measures will help local steel producers such as Algoma Steel Group Inc. (NASDAQ:ASTL). RBC Capital Markets noted that the company is expected to see significant earnings upside next year as a result of the supportive policies from the government.

Algoma Steel Group Inc. (NASDAQ:ASTL) is a Canadian integrated steel producer specializing in hot and cold rolled steel sheet and plate products.

While we acknowledge the potential of ASTL 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 ASTL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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