3 Stocks Worth Buying and Holding Through 2026 and Beyond
Alex Smith
5 hours ago
Canadian equity markets have staged a strong rebound in recent weeks, with the S&P/TSX Composite Index climbing more than 9% from last monthâÂÂs lows. Improved investor sentiment, driven by a ceasefire announcement and ongoing peace talks between the United States and Iran, has supported this recovery. However, uncertainty around the outcome of these negotiations still lingers.
That said, long-term investors should avoid getting sidetracked by short-term market swings and instead focus on fundamentally strong businesses. With that in mind, here are three top Canadian stocks that currently present compelling buying opportunities.
5N Plus
5N Plus (TSX:VNP) has been one of this yearâÂÂs standout performers, delivering returns of over 88% year to date. Its strong fourth-quarter results, ongoing growth initiatives, and encouraging 2026 outlook have driven the stock higher. The momentum could continue, supported by its exposure to high-growth sectors such as semiconductor, renewable energy, space-based observation, satellite communications, and security applications.
The specialty semiconductor and performance materials producer is also expanding its production capabilities to meet rising demand. It is working to increase solar cell capacity at its AZUR SPACE Solar Power facility by 25% this year. In addition, the company is enhancing its recycling and refining capabilities for germaniumâÂÂa key material used in solar cells and advanced opticsâÂÂat its St. George, Utah, facility, with support from a US$18.1 million grant from the U.S. government.
Given these growth drivers and strategic investments, 5N Plus appears well-positioned to sustain its financial momentum in the coming years, making it an attractive buying opportunity.
Savaria
Another stock that stands out as an attractive buy is Savaria (TSX: SIS), which designs, manufactures, and installs accessibility solutions for residential and commercial use. The stock has outperformed the broader market this year, delivering a 32.9% return, supported by solid quarterly results and optimistic long-term targets.
Demand for SavariaâÂÂs products remains strong, driven by an aging population and increasing adoption of in-home accessibility equipment. To capitalize on this trend, the company continues to introduce innovative products while pursuing strategic acquisitions to expand its capabilities and market reach.
Earlier this month, management outlined an encouraging five-year outlook. The company expects revenue to grow at a 12% annualized rate, reaching $1.6 billion by 2030. It also aims to maintain an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 20% while increasing adjusted EBITDA per share to $4.25, implying annualized growth of 10.4%.
Despite these strong growth prospects, SavariaâÂÂs valuation remains reasonable, with a forward price-to-earnings multiple of 21.7. In addition, it pays a monthly dividend of $0.0467 per share, yielding 1.86% on a forward basis. Overall, SavariaâÂÂs solid fundamentals, growth initiatives, and income component make it a compelling investment at current levels.
Celestica
Celestica (TSX:CLS), which provides critical infrastructure solutions to hyperscalers building and scaling data centres, would be my final pick. Backed by strong quarterly results and its exposure to the fast-growing artificial intelligence (AI) market, the stock has gained 35.4% year to date, outperforming the broader market.
Demand from hyperscalers continues to rise as they expand capacity to support increasing computing needs driven by AI adoption, creating significant long-term growth potential for Celestica. To capitalize on this trend, the company is emphasizing innovation, forming strategic partnerships, and scaling its production capabilities.
Celestica also plans to invest approximately $1 billion this yearâÂÂabout 6% of its projected revenueâÂÂto expand its global footprint and enhance capabilities in high-reliability manufacturing, advanced design engineering, and end-to-end supply chain solutions.
Given its strong positioning in a high-growth market, ongoing investments, and solid execution, Celestica appears well-placed to deliver sustained growth, making it an attractive investment at current levels.
The post 3 Stocks Worth Buying and Holding Through 2026 and Beyond appeared first on The Motley Fool Canada.
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More reading
- What is One of the Best Tech Stocks to Own for the Next Decade?
- 5 Canadian Dividend Stocks That Could Grow Your Paycheque Over Time
- If I Were Only Buying 3 Stocks Right Now, These Would Be Them
- The Canadian Stocks Iâd Consider First If I Had $2,000 to Invest Today
- 3 No-Brainer AI Stocks to Buy Right Now on the TSX
Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.
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