After a brief pullback last week, the S&P/TSX Composite Index has rebounded sharply, reaching a fresh all-time high. The index has climbed 3.1% over the first three trading days of this week, extending its year-to-date gain to 24.7%. This surge comes as optimism grows following the resolution of the U.S. government shutdown and expectations of more interest rate cuts from the Bank of Canada amid weakness in the manufacturing sector. In this upbeat market environment, here are three top Canadian stocks that look like smart buys today.
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Celestica
Celestica (TSX:CLS) has been one of Canada’s standout performers this year, soaring more than 250%. Yet, there’s reason to believe the rally isn’t over. The ongoing artificial intelligence (AI) boom is driving hyperscalers to ramp up data centre investments, expanding Celestica’s addressable market. The Toronto-based manufacturer continues to roll out new and innovative products tailored to evolving customer needs.
Following a strong third quarter, Celestica raised its 2025 outlook and issued bullish guidance for 2026. The company now expects revenue to grow 26.4% and adjusted earnings per share (EPS) to rise 52.1% in 2025, with free cash flow projected at around $425 million this year. For 2026, management is targeting revenue growth of 65.8% and EPS growth of 111.3% versus 2024 levels. Despite these robust forecasts, the stock trades at just 2.5 times analysts’ projected sales for the next four quarters—making it an attractive buy for growth-focused investors.
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Dollarama
Next up is Dollarama (TSX:DOL), a defensive name with a solid growth trajectory. The discount retailer’s efficient direct sourcing model and streamlined logistics enable it to keep costs low and prices competitive—driving consistent same-store sales growth even in tough economic times.
Dollarama’s expansion strategy remains strong, with plans to grow its Canadian store base to 2,200 locations and its Australian network to 700 by fiscal 2034. Its Latin American arm, Dollarcity, is also scaling up, targeting 1,050 stores by fiscal 2031 (up from 658 currently). Dollarama also holds an option to increase its ownership in Dollarcity from 60.1% to 70% by 2027. These initiatives should bolster both revenue and profit growth, supporting long-term share price appreciation.
Enbridge
Rounding out the list is Enbridge (TSX:ENB), a top-tier dividend stock offering income stability and reliable growth. The energy infrastructure giant operates under long-term contracts and regulated frameworks across its oil, gas, and renewable energy segments. This business model generates steady cash flows, helping Enbridge deliver uninterrupted dividend growth for nearly three decades.
Since 1995, Enbridge has increased its dividend at a 9% annual clip, and it currently yields an attractive 5.52%. The company recently added $3 billion in new projects, boosting its secured capital backlog to $35 billion. With plans to invest $9–$10 billion annually, Enbridge expects to strengthen its asset base and cash generation capacity—supporting a projected $40–$45 billion return to shareholders over the next five years. For income-focused investors seeking long-term stability, Enbridge remains a compelling buy.
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