Top Canadian Stocks to Buy Today (December 8, 2025): TSX Ideas for Banks, Commodities, AI and Dividends

Canada’s stock market is heading into the week of December 8, 2025 near record highs, with the S&P/TSX Composite hovering around the 31,000–31,500 range after setting a fresh closing record above 31,400 earlier this month. ^[1] Futures are flat this morning as investors wait for policy decisions from the Bank of Canada and the U.S. Federal Reserve, with markets overwhelmingly expecting the BoC to hold its key rate at 2.25%. ^[2]

Against this backdrop, investors are asking the same question: which Canadian stocks look buyable today?

Below is a news‑driven, theme‑based look at TSX stocks to consider right now, using the latest data, earnings, and forecasts available on December 8, 2025. This is information only, not personalized advice—always do your own research and consider speaking with a licensed advisor.

1. Canada stock market today: why the TSX still looks compelling

According to RBC Wealth Management’s newly released Global Insight 2026 Outlook: Canada, the S&P/TSX Composite is on track to deliver one of the strongest returns among developed markets in 2025, helped by record gold prices and improved sentiment around domestic lenders. ^[3]

At the same time:

The index is near record highs. After a record close above 31,400 on December 4, the TSX pulled back slightly on profit-taking but remains within touching distance of those levels. ^[4]
Rate cuts are largely in the rear-view mirror. The Bank of Canada has already delivered 275 basis points of cuts this year and is now expected to keep its policy rate at 2.25% until at least 2027, barring major surprises. ^[5]
Growth is modest but stabilizing. The BoC’s October Monetary Policy Report projects Canadian growth around 0.75% in the second half of 2025, improving to about 1.4% in 2026–27, with inflation hovering near the 2% target. ^[6]
Tariffs are a real headwind. New U.S. tariffs have raised the average tariff rate on Canadian exports from near zero to almost 6% by October 2025, pushing companies to rewire supply chains and diversify export markets. ^[7]

Vanguard’s latest economic outlook echoes this “slow but not broken” narrative, forecasting Canadian GDP growth of roughly 1.7% for 2025 and an unemployment rate near 7%, with inflation under control. ^[8]

What it means for investors:

The macro environment favours quality balance sheets and resilient cash flows, rather than speculative growth at any price.
Bank of Canada and Fed decisions still matter for valuation multiples, but the direction of rates (down earlier in 2025, now on pause) has already helped re‑rate many TSX names.
Sectors like banks, energy, gold miners, industrials and AI‑linked tech have emerged as key winners in 2025. ^[9]

RBC’s outlook explicitly recommends focusing on “stocks with quality characteristics” and extending duration in government bonds—another way of saying investors should lean into durable franchises rather than chase the hottest short‑term trade. ^[10]

2. Core Canadian bank stocks to buy and hold

2.1 Royal Bank of Canada (TSX: RY)

Royal Bank of Canada remains the TSX’s heavyweight champion and just posted record full‑year and fourth‑quarter results:

FY2025 net income of about C$20.4 billion, up 25% year over year, with diluted EPS up by a similar margin. ^[11]
Q4 profit beat analyst estimates, driven by a 45%+ jump in capital markets earnings and strong growth in wealth management. ^[12]

Why RY is on buy‑lists today

Earnings momentum: Multiple segments (capital markets, wealth, personal & commercial banking) are firing at once, even with a soft housing market and rising unemployment. ^[13]
Scale and diversification: RBC’s acquisition of HSBC Canada further cements its dominant domestic position while also broadening its international footprint. ^[14]
Dividend growth: The bank has raised its dividend again, reflecting confidence in sustainable cash generation. ^[15]

Key risks

Higher credit losses if unemployment rises faster than expected.
Ongoing pressure from tariffs and slower global growth could cool capital markets activity.

For long‑term investors building a core Canadian holding, RY remains one of the most widely held “buy‑and‑never‑sell” names on the TSX for a reason.

2.2 Bank of Montreal (TSX: BMO)

Bank of Montreal just reported a strong Q4 driven by capital markets performance, beating consensus earnings estimates. ^[16] At the same time, BMO announced a fresh dividend increase:

Quarterly dividend lifted to C$1.67 per share, a 2% increase from the prior quarter and roughly 5% year over year. ^[17]
Dividend yields around the mid‑3% range, with payouts described as stable and growing over the last decade. ^[18]

Why BMO stands out

Reliable income: A long history of uninterrupted quarterly dividends, now growing again as earnings strengthen. ^[19]
Capital markets leverage: Profit from BMO’s capital markets division more than doubled in Q4, benefiting from revived deal‑making and equity markets. ^[20]
Valuation vs. peers: While share prices are up roughly 30% year to date, they still trade at a discount to many large U.S. banks, according to recent comparative analysis. ^[21]

Risks

Credit quality could deteriorate if mortgage renewals bite harder in 2026–27. ^[22]
Regulatory and capital requirements may limit share buybacks vs. dividend increases.

For investors seeking dividend growth plus exposure to Canada’s banking rebound, BMO is a credible “buy on any pullback” candidate.

3. Energy and resources: playing Canada’s commodity edge

3.1 Canadian Natural Resources (TSX: CNQ)

Canadian Natural Resources remains one of the TSX’s flagship energy names. Recent data show:

CNQ hit a new 52‑week high last week on strong trading volumes. ^[23]
Analysts rate the stock a “moderate buy,” with consensus price targets still implying upside from current levels. ^[24]
Consensus earnings estimates for 2025 have been revised higher over the past quarter, signalling improving sentiment. ^[25]

Bull case today

Cash‑rich model: CNQ is known for robust free cash flow, which it has historically returned to shareholders via growing dividends and opportunistic buybacks. ^[26]
Scale and diversification: Its mix of oil sands, natural gas and conventional assets offers resilience against single‑commodity shocks. ^[27]
Income angle: Commentators have highlighted CNQ as a “magnificent dividend stock” whose payout is expected to keep rising over time. ^[28]

Risks

Oil prices are inherently volatile and highly sensitive to global growth, OPEC decisions and geopolitical events.
Environmental and regulatory pressures will remain a long‑term overhang on heavy oil producers.

For investors comfortable with commodity cycles, CNQ offers a blend of income, scale and leverage to higher energy prices.

3.2 Barrick (TSX: ABX) – a gold hedge with momentum

Gold prices are near all‑time highs, and that has been a major driver of TSX outperformance in 2025. ^[29] A recent Morningstar roundup lists Barrick and Lundin among the best‑performing Canadian stocks in November, powered by the move in precious metals. ^[30]

Motley Fool analysts have also flagged Barrick as one of two “soaring gold stocks” that still look inexpensive in December 2025. ^[31]

Why ABX belongs on a December 8 watchlist

Gold leverage: When gold makes new highs, senior miners like Barrick typically see expanding margins and cash flows. ^[32]
Valuation: Despite strong performance this year, some analysts still view ABX as attractive on cash‑flow metrics vs. historical norms. ^[33]
Portfolio role: Gold miners can act as a hedge against macro surprises—from inflation spikes to geopolitical flare‑ups.

Risks

Gold miners carry operational risks (cost overruns, mine disruptions, political risk) above and beyond metal prices.
If central banks turn more hawkish again, gold’s appeal can fade quickly.

As part of a diversified portfolio, Barrick is a classic TSX name for investors who want gold exposure with liquidity.

3.3 Lithium Americas (TSX: LAC) – index inclusion catalyst

Lithium Americas just announced it will join the S&P/TSX Composite Index before the open on December 22, 2025—an important milestone for the company. ^[34]

At the same time, the company launched a US$250 million at‑the‑market equity program and received an upgrade from JPMorgan, which lifted its rating from “underweight” to “neutral” after a large sell‑off earlier in the year. ^[35]

Why LAC is interesting today

Index effect: Joining the TSX Composite can trigger buying by index funds and ETFs that track the benchmark. ^[36]
Secular demand: Lithium remains a key input for EV and grid‑scale battery production, and long‑term demand projections remain robust. ^[37]
Sentiment reset: After a sharp pullback, an upgrade from a major global bank suggests expectations may now be more realistic. ^[38]

Risks

Highly volatile commodity pricing and project‑execution risk.
The new equity program will dilute existing shareholders if fully used.

LAC is a growth‑tilted idea, best suited for investors who can tolerate swings and are willing to hold through full commodity cycles.

4. Industrial and infrastructure winners: rails and heavy equipment

4.1 Canadian Pacific Kansas City (TSX: CP)

MarketBeat’s screener has repeatedly flagged Canadian Pacific Kansas City (CP) as one of the top Canadian stocks to watch in early December, thanks to high trading volumes alongside CNQ and BMO. ^[39]

Recent analysis notes that:

CP’s earnings guidance for 2025 still calls for double‑digit adjusted EPS growth (10–14%), even in the face of tariff‑related uncertainty. ^[40]
The railway is uniquely positioned, being the only network that can move freight directly from Canada to Mexico without an interchange, cutting transit times by up to two days. ^[41]
Valuation work from Simply Wall St suggests CP trades at around 21–22x earnings, which they argue is slightly below their assessment of fair value. ^[42]

Why CP is buy‑on‑weakness material

Nearshoring tailwind: As manufacturers shift production to Mexico under USMCA‑friendly structures, CP’s tri‑national network becomes more valuable. ^[43]
Operating leverage: Even modest volume growth can translate into strong earnings gains due to high fixed costs. ^[44]
Recent pullback: The stock is still down from earlier peaks, and commentary from multiple analysts frames this as a long‑term buying opportunity. ^[45]

Risks

Sensitive to economic slowdowns and cross‑border trade disputes.
Execution risk from integrating large, complex rail networks.

For investors who like infrastructure‑style moat businesses, CP remains one of the TSX’s premier long‑term holdings.

4.2 Finning International (TSX: FTT)

Finning, the world’s largest Caterpillar dealer, has been one of 2025’s quiet stars:

The stock is up around 90%+ year to date, according to recent performance rundowns of top TSX winners. ^[46]
Q3 2025 results showed revenue up 14%, EBIT up about 25%, and EPS up 33% year on year, driven by strong demand across regions and end markets. ^[47]

Why FTT still attracts buyers despite the run‑up

Leverage to mining and energy capex: As miners and energy companies increase spending on equipment and maintenance, Finning participates directly through higher equipment sales and service revenue. ^[48]
Operational improvement: Rising margins and high returns on invested capital (ROIC near 19% in Q3) show management is executing well. ^[49]
Free cash flow story: While Q3 saw negative free cash flow due to inventory build, management framed this as supporting elevated activity levels rather than structural weakness. ^[50]

Risks

After a near‑doubling, expectations are high; any slowdown in commodity‑linked capex could trigger a sharp re‑rating.
Cyclical exposure to global growth and metal prices.

Investors who missed the early 2025 move may still consider building a position gradually, especially on market pullbacks.

5. Growth and AI: Canadian tech and consumer names

5.1 Celestica (TSX: CLS) – AI hardware at a discount

Celestica has become Canada’s flagship AI hardware stock:

The company recently beat earnings expectations, raised its full‑year 2025 outlook, and doubled down on AI data‑centre hardware demand, while also expanding its share buyback. ^[51]
Over the past five years, a hypothetical C$1,000 investment would have grown dramatically, reflecting investors’ enthusiasm for its AI‑linked growth story. ^[52]
Despite a strong run, recent analyses note the shares are still trading roughly one‑third below consensus analyst price targets, and about 14% under all‑time highs, as of early December. ^[53]

Why CLS is a top Canadian growth idea today

Direct AI exposure: Celestica designs and manufactures hardware for AI‑intensive data centres—servers, networking and related infrastructure that benefit from the cloud/AI spending boom. ^[54]
Upgraded guidance: Raising revenue and profit expectations in a cautious macro environment signals strong demand visibility. ^[55]
Valuation vs. U.S. peers: Even after its surge, CLS still trades at lower multiples than many U.S. AI hardware names with similar growth trajectories. ^[56]

Risks

Highly cyclical demand in electronics and data‑centre spending.
Execution risk in scaling complex manufacturing operations on tight timetables.

For investors seeking TSX‑listed AI exposure, Celestica remains one of the clearest pure‑plays.

5.2 Aritzia (TSX: ATZ) – premium retail with momentum

Aritzia, the fashion‑forward retailer, has quietly staged a big comeback in 2025:

Recent price data show shares at about C$113 as of December 5, up roughly 2.5% over the prior week and nearly 7% over the last two weeks, with rising trading volume. ^[57]
Earlier this year, the company reported double‑digit growth in retail net revenue in its fiscal 2025 results. ^[58]
Recent TSX “top stocks to buy now” lists from analysts include Aritzia alongside names like CES Energy Solutions and Bombardier. ^[59]

Why Aritzia appeals in today’s environment

Brand power: Aritzia has successfully built a premium, “affordable luxury” brand with strong recognition in both Canada and the U.S. ^[60]
Growth runway: Expansion in U.S. markets and e‑commerce gives the company meaningful room to grow revenues even if Canadian consumer spending remains mixed. ^[61]
Technical strength: The stock’s recent pattern of rising prices on higher volume is often interpreted as a sign of institutional buying. ^[62]

Risks

A consumer downturn could pressure discretionary spending on premium apparel.
Fashion risk and inventory management are constant challenges for retailers.

For investors comfortable with consumer cyclicality, Aritzia offers a domestic growth story with an emerging U.S. angle.

6. High‑risk Canadian penny stocks to watch (not for everyone)

For more speculative investors, TSX and TSXV penny stocks have seen renewed interest in December. Multiple screens from Yahoo Finance and Simply Wall St highlight names like Alta Copper, Amarc Resources, Hannan Metals, Nano One Materials, and others as “penny stocks to watch.” ^[63]

A few themes:

Copper & battery materials: AI data‑centre buildouts and electrification trends are driving concerns about future copper shortages, which could support projects held by junior miners and explorers. ^[64]
Option‑like upside: With market caps sometimes under C$200 million, positive drill results or partnership news can materially re‑rate these names.

But the risks are enormous:

Many of these companies have little or no current revenue and depend on capital markets access. ^[65]
Liquidity is limited; getting in can be easy, getting out may not be—especially during sell‑offs.

These stocks are generally suitable only for small, speculative allocations or watchlists—not as core holdings.

7. How to build a TSX portfolio around these ideas

Given today’s macro backdrop—moderate growth, tariffs, and a central bank on hold—many institutions are steering investors toward quality and diversification rather than single‑factor bets. ^[66]

A simple framework using the stocks discussed above might look like:

Core income & stability (40–60%)
- Royal Bank of Canada (RY)
- Bank of Montreal (BMO)
- Canadian Natural Resources (CNQ)
Cyclical and commodity leverage (20–30%)
- Barrick (ABX)
- Finning (FTT)
- Canadian Pacific Kansas City (CP)
Growth & innovation (10–25%)
- Celestica (CLS)
- Aritzia (ATZ)
- Lithium Americas (LAC)
Speculative satellite (0–5% max)
- Select TSX/TSXV penny stocks (e.g., Alta Copper, Nano One), if you fully understand the risks. ^[67]

The exact weights will depend on your risk tolerance, time horizon, and need for income. But in general:

Banks + cash‑generating energy help anchor the portfolio.
Rails, gold and heavy equipment provide leveraged exposure to trade and commodities.
AI and consumer growth names offer upside if the global expansion continues.

8. Final thoughts and disclaimer

As of December 8, 2025, the Canadian market is in a sweet spot: valuations are no longer depressed, but earnings strength in banks, miners, energy and AI‑linked tech is still drawing capital into the TSX. ^[68]

That said:

Index‑level returns have already been strong in 2025, and volatility around central bank decisions remains likely. ^[69]
Individual stocks—especially cyclicals and growth names—can move sharply on earnings, commodity prices or policy headlines.

This article is for informational and educational purposes only and does not constitute financial, investment or trading advice.
It does not account for your specific objectives, financial situation or risk tolerance. Always do your own research, check up‑to‑date data, and consider consulting a licensed financial advisor before making investment decisions.

How to Turn a $10,000 TFSA into $100,000