In this article, we will look at the 9 Best Up and Coming Canadian Stocks to Buy.
On November 19, IG Wealth Management released its 2026 Market Outlook for Canada. The report relied on four key macroeconomic indicators, including the easing monetary policy, fiscal expansion, AI supercycle, and the wealth effect, to conclude that 2026 would be a rebound year for the Canadian market as the recession fears have faded.
The report highlights that one of the key factors driving the Canadian market to record highs is an accommodating policy, which has led to a boost in liquidity, thereby supporting stock values, particularly in the technology sector. Moreover, the government is also leaning towards fiscal stimulus by prioritizing housing and productivity. The report suggests that investors with a focus on earnings, valuations, and strong fundamentals are well-positioned to benefit in 2026.
Later, on November 26, Reuters also released results from its polls suggesting that the S&P/TSX Composite Index would rise around 5% to 32,125 by the end of 2026. The report suggests that the Canadian stock index will hit all-time highs in 2026, driven by easing trade uncertainty and increased spending on AI.
With that, let’s take a look at the 9 Best Up and Coming Canadian Stocks to Buy.
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Our Methodology
To curate the list of 9 Best Up and Coming Canadian Stocks to Buy, we used the Finviz stock screener and Insider Monkey’s Q3 2025 database. Using the screener, we aggregated a list of Canadian stocks that have had their IPOs in the last 5 years. Next, we sorted the list by market capitalization and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q3 2025 database.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
9 Best Up and Coming Canadian Stocks to Buy
9. Eupraxia Pharmaceuticals Inc. (NASDAQ:EPRX)
Number of Hedge Fund Holders: 6
Eupraxia Pharmaceuticals Inc. (NASDAQ:EPRX) is one of the Best Up and Coming Canadian Stocks to Buy. Analysts see more than 77% upside for Eupraxia Pharmaceuticals Inc. (NASDAQ:EPRX). This bullish sentiment comes after the clinical-stage biotechnology company reported promising results from its Phase 2b RESOLVE trial for eosinophilic esophagitis on November 13.
The additional 52-week follow-up data from the RESOLVE trial showed all patients in Cohort 6 maintained symptom improvement at week 52 with an average reduction in SDI scores of -3.7 (-58%). Management noted that patients reaching 52 weeks in the trial showed durable symptom relief, which is clinically meaningful.
Following the announcement, on November 14, Kristen Kluska from Cantor Fitzgerald reiterated a Buy rating on Eupraxia Pharmaceuticals Inc. (NASDAQ:EPRX) with a price target of C$15.38, reflecting more than 76% upside from the current level.
Eupraxia Pharmaceuticals Inc. (NASDAQ:EPRX) is a clinical-stage biotechnology company developing locally delivered, extended-release drug products using its proprietary DiffuSphere technology.
8. Allied Gold Corporation (NYSE:AAUC)
Number of Hedge Fund Holders: 7
Allied Gold Corporation (NYSE:AAUC) is one of the Best Up and Coming Canadian Stocks to Buy. On November 27, Allied Gold Corporation (NYSE:AAUC) reported significant progress in exploration at the Kurmuk mine in western Ethiopia. The stock price surged more than 8.9% by market close on Friday, November 28.
Management noted that this is the second of the three planned exploration updates. Kurmuk mine is a significant project for the company with an estimated average production of around 290,000 gold ounces in the first four years and 240,000 ounces annually afterwards. The production at this site is expected to start by mid-2026.
In addition, Allied Gold Corporation (NYSE:AAUC) posted strong performance during fiscal Q3 2025, announced on November 5. The stock price has surged more than 38% since the release. The company produced 87,020 ounces of gold and sold 92,099 ounces during the quarter. Management noted that the production and sales were in line with the expectations and supports the strong production guidance for the fourth quarter. The production for the fourth quarter is expected to be the highest of the year, driven by higher grades. Management anticipates annual gold production to surpass 375,000 gold ounces.
Allied Gold Corporation (NYSE:AAUC) is a gold producer operating three producing assets and development projects in Cote d’Ivoire, Mali, and Ethiopia.
7. South Bow Corporation (NYSE:SOBO)
Number of Hedge Fund Holders: 16
South Bow Corporation (NYSE:SOBO) is one of the Best Up and Coming Canadian Stocks to Buy. Wall Street has a cautious outlook on South Bow Corporation (NYSE:SOBO) since the company posted mixed results for fiscal Q3 2025 on November 13.
On November 20, Praneeth Satish from Wells Fargo reiterated a Sell rating on the stock, while slightly raising the price target from $24.14 to $24.85. On the same day, Jeremy Tonet from J.P. Morgan reiterated a Sell rating on the stock with a $28 price target.
During the quarter, the company posted an EPS of $0.47, which topped estimates by $0.08. However, the revenue dropped 13.7% year-over-year to $461 million and missed estimates by $37 million. Management reported average throughput of approximately 584,000 barrels per day (bbl/d) on the Keystone Pipeline and around 703,000 bbl/d on the U.S. Gulf Coast segment.
Analyst Praneeth Satish of Wells Fargo earlier on August 12 noted that his sell rating is due to some important factors impacting the company’s financial outlook. He noted the persistent valuation concerns despite an increase in stock price. Moreover, he highlighted that the company is trading at an EV/EBITDA multiple of 10.2x versus the sector median of 8.8x. Praneeth also highlighted potential financial impacts from the MP 171 incident, which is expected to impact the company’s financial outlook.
Management of South Bow Corporation (NYSE:SOBO) kept its annual 2025 guidance largely unchanged, with Normalized EBITDA expected around $1.010 billion and a slight improvement in the Effective tax rate from a range of 23% – 24% to 20% – 21%.
South Bow Corporation (NYSE:SOBO) owns and operates critical crude oil pipelines and facilities spanning Canada and the United States, primarily connecting Alberta’s oil production to US refining markets in the Midwest and Gulf Coast.
6. AbCellera Biologics Inc. (NASDAQ:ABCL)
Number of Hedge Fund Holders: 17
AbCellera Biologics Inc. (NASDAQ:ABCL) is one of the Best Up and Coming Canadian Stocks to Buy. AbCellera Biologics Inc. (NASDAQ:ABCL) is down more than 23% since its fiscal Q3 2025 business update on November 6. However, Wall Street maintains a bullish sentiment with analysts’ 12-month average price target of $8.5, reflecting 144.96% upside from the current level.
On November 19, David Martin, PhD, from Bloom Burton reiterated a Buy rating on the stock with a price target of $9. Earlier on November 10, Srikripa Devarakonda from Truist Financial also reiterated a Buy rating on the stock without disclosing any price targets.
AbCellera Biologics Inc. (NASDAQ:ABCL) grew its revenue by 37.62% year-over-year to $8.96 million, surpassing estimates by $2.62 million. However, the EPS of negative $0.19 fell short of the expectations by $0.03. Management noted that their ABCL635 and ABCL575 continue to progress through Phase 1 clinical trials, and the company reached 103 partner-initiated program starts with downstreams.
Later on November 13, AbCellera Biologics Inc. (NASDAQ:ABCL) also presented at the Stifel 2025 Healthcare Conference, where management highlighted its strategic shift from partnerships to developing its own clinical assets. The company still values its partnerships with big pharma, including Lilly and AbVie. However, it is leveraging its capabilities and technologies to build its own clinical assets.
AbCellera Biologics Inc. (NASDAQ:ABCL) discovers and develops antibody-based medicines targeting cancer, metabolic/endocrine conditions, and autoimmune disorders. The company uses an AI-powered platform that integrates technology, data science, and microfluidics for rapid single-cell screening.
5. enGene Holdings Inc. (NASDAQ:ENGN)
Number of Hedge Fund Holders: 21
enGene Holdings Inc. (NASDAQ:ENGN) is one of the Best Up and Coming Canadian Stocks to Buy. enGene Holdings Inc. (NASDAQ:ENGN) has gained more than 31% since the company reported positive results from its Phase 2 LEGEND trial on November 11.
Wall Street also maintains a positive outlook with analysts’ 12-month price target of $23 reflecting more than 190% upside from the current level. On November 12, David Dai from UBS reiterated a Hold rating on the stock with a $10 price target. On the same day, Judah Frommer from Morgan Stanley reiterated a Buy rating on the stock with a price target of $18.
enGene Holdings Inc. (NASDAQ:ENGN) reported an improved complete response rate of 62% at 6 months of Detalimogene voraplasmid to treat high-risk, BCG-unresponsive non-muscle invasive bladder cancer. Management noted that at 3 months, the complete response rate was 56% However, at 6 months, the response rate improved to 62% among 37 patients.
The preliminary data from the trial suggest that the company remains on track for its planned Biologics License Application submission in the second half of 2026.
enGene Holdings Inc. (NASDAQ:ENGN) is a clinical-stage biotechnology company developing non-viral genetic medicines for the delivery of therapeutics to mucosal tissues and other organs.
4. Gold Royalty Corp. (NYSEAMERICAN:GROY)
Number of Hedge Fund Holders: 23
Gold Royalty Corp. (NYSEAMERICAN:GROY) is one of the Best Up and Coming Canadian Stocks to Buy. On November 25, Gold Royalty Corp. (NYSEAMERICAN:GROY) announced an enhanced revolving credit facility of up to $100 million and the elimination of debt.
Management announced that it reached an agreement with the Bank of Montreal and National Bank Capital Markets to increase its borrowing ability through a revolving credit facility. As a result, the facility has been increased to $75 million, and the company can potentially increase this by another $25 million if certain conditions are met. Moreover, the duration of this facility has also increased and now lasts until November 2028. Notably, Gold Royalty Corp. (NYSEAMERICAN:GROY) had to pay off at least 75% of these debentures to unlock the new facility, meaning the company has paid most of its existing debt that was due in 2028.
Moreover, the share price of Gold Royalty Corp. (NYSEAMERICAN:GROY) has surged more than 25.5% since the fiscal Q3 2025 results, announced on November 5. Wall Street has had a positive outlook on the stock since the release. Earlier on November 10, Tate Sullivan from Maxim Group reiterated a Buy rating on the stock, but lowered the price target from $6 to $5. On November 7, Heiko Ihle from H.C. Wainwright also reiterated a Buy rating on the stock with a $6.25 price target.
Gold Royalty Corp. (NYSEAMERICAN:GROY) is a Canadian company that provides financing solutions to the metals and mining industry by acquiring royalties and streaming interests on gold and other precious metals properties.
3. Bausch + Lomb Corporation (NYSE:BLCO)
Number of Hedge Fund Holders: 24
Bausch + Lomb Corporation (NYSE:BLCO) is one of the Best Up and Coming Canadian Stocks to Buy. Wall Street has a cautious outlook on the stock despite an 8.59% increase in share price during the month.
On November 13, Bausch + Lomb Corporation (NYSE:BLCO) highlighted its growth strategy at investor day. The management noted they have increased their focus on simplification and rebuilt the culture to embrace AI and technological innovation. The company unveiled that it targets 5% to 7% CAGR through 2028, driven by growth across the board and its recent product launches. In addition, the company targets around 23% adjusted EBITDA in 2028, while reaffirming its 2025 guidance.
Despite the optimistic growth plan, on November 14, Matt Miksic from Barclays reiterated a Hold rating on the stock with a price target of $17. Earlier, on November 13, Travis Steed from Bank of America Securities reiterated a Sell rating on Bausch + Lomb Corporation (NYSE:BLCO) with a price target of $13.
The analyst noted that management projects revenue and adjusted EBITDA growth through 2025 to 2028, but argues that this projection reflects only the best-case scenario. He added that although the outlook appears to be optimistic, it does not align with the conservative outlook of the Street, which suggests overestimated growth targets. In addition, Steed noted that the targets heavily rely on execution rather than innovation, thereby increasing the risk factor.
Bausch + Lomb Corporation (NYSE:BLCO) is a leading eye health company focused on protecting and enhancing vision through products like contact lenses, pharmaceuticals, and surgical equipment.
2. Triple Flag Precious Metals Corp. (NYSE:TFPM)
Number of Hedge Fund Holders: 29
Triple Flag Precious Metals Corp. (NYSE:TFPM) is one of the Best Up and Coming Canadian Stocks to Buy. Triple Flag Precious Metals Corp. (NYSE:TFPM) has gained more than 23% since its fiscal Q3 2025 results, announced on November 4. Wall Street maintains a positive outlook on the stock.
On November 24, Lawson Winder from Bank of America Securities reiterated a Buy rating on the stock and raised the price target from C$51.7 to C$53.09. Earlier on November 6, Ingrid Rico from Stifel Nicolaus also reiterated a Buy rating on the stock with a price target of C$58.
During the quarter, Triple Flag Precious Metals Corp. (NYSE:TFPM) grew its quarterly revenue by 26.86% year-over-year to $93.46 million, but fell short of the expectations by $210,670. However, the EPS of $0.24 topped the consensus by $0.02. Management was able to grow its revenue despite a slight decrease in production from 29,773 GEOs to 27,037 GEOs. This was driven by increased gold prices during the quarter.
In addition, management also reiterated its 2025 production guidance of 105,000 to 115,000 ounces. The 2029 production outlook of 135,000 to 145,000 GEOs also remains unchanged.
Triple Flag Precious Metals Corp. (NYSE:TFPM) operates as a precious metals streaming and royalty company, providing upfront financing to miners in exchange for a percentage of future gold, silver, and other metal production.
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.
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