Got $7,000 to Invest? These Canadian Stocks Should Be on Your Radar #CanadaFinance

Written by Sneha Nahata at The Motley Fool Canada

U.S.-Canada trade tensions have led to a pullback in the stock market, with a notable correction in several high-quality Canadian stocks. However, for investors with a long-term perspective, this decline presents an opportunity to buy fundamentally strong companies at a discount.

So, if you’re looking to invest up to $7,000, which aligns with the Tax-Free Savings Account (TFSA) contribution limit for 2025, these Canadian stocks should be on your radar.

Investors looking for solid long-term stocks could consider adding Bird (TSX:BDT). This leading construction and maintenance company closed 2024 on a solid note, with revenue surging 21% year-over-year. More importantly, its earnings and operating cash flow outpaced revenue growth, reflecting improving margins.

Beyond delivering solid organic growth, Bird expanded through acquisitions, bringing NorCan and Jacob Bros under its umbrella. These moves strengthened its self-perform capabilities and diversified its reach across Canada.

Entering 2025, Bird has a strong balance sheet and record liquidity. Moreover, with its disciplined capital allocation strategy, the firm aims to reward shareholders with regular dividend payouts and reinvest in organic growth, strategic acquisitions, and technology.

Bird’s $7.6 billion backlog remains robust and well-balanced in risk. Most contracts are structured to mitigate cost pressures, ensuring stability even amid macro uncertainties. Bird has also taken steps to manage tariff risks by passing exposure down to subcontractors or retaining flexibility through client agreements.

Despite these strengths, Bird’s stock has dipped over 14% year-to-date, presenting an attractive entry point. With solid fundamentals, a growing recurring revenue base, and exposure to long-term growth sectors, this pullback is a solid opportunity for investors looking to buy and hold a high-quality stock in their TFSA portfolio.

goeasy (TSX:GSY) is another compelling Canadian stock to buy now. Shares of the subprime lender have dropped 13.8% over the past month. This presents a solid opportunity to go long on goeasy stock, which offers value, growth, and income.

Despite its strong fundamentals, goeasy is currently trading at a next-12-month price-to-earnings (P/E) multiple of just 7.6, well below its historical average. This valuation appears particularly attractive for a company with a double-digit earnings growth rate, a return on equity (ROE) of over 26%, and a solid 3.9% dividend yield.