Despite tariffs and economic uncertainty, Canadian stocks have performed with resilience in 2025. The TSX Index is up 7.6% this year, whereas the S&P 500 is only up 1.5%. Oddly enough, Canadian stocks have outperformed their American peers.
The good news is that there are still good opportunities in the Canadian market. While the pullback in March would have been the ideal time to add to positions, there are still deals to be found. If I had $5,000, here are three unique, high-quality stocks to deploy that cash into today.
A top Canadian tech stock
With its stock up 622% in the past 10 years, Descartes Systems (TSX:DSG) has spent more time close to 52-week highs than 52-week lows. However, this strong Canadian compounder is down 17% this year. It represents an attractive buying opportunity.
Descartes is an important global supplier of software solutions to logistics and transport sector. With trade wars and geopolitical tensions, the global supply chain is in a bit of distress.
While that may impact Descartes in the near term, it is likely temporary. Its software helps logistics providers navigate complex environments. It is very challenging to revert to legacy paper or software processes once Descartes’s software is adopted.
With a strong, cash-rich balance sheet, this Canadian stock can proactively deploy capital into acquisitions. If you don’t mind being a contrarian, now is a good time to buy this stock.
A property services business
Another Canadian stock that has recently pulled back is FirstService (TSX:FSV). Like Descartes, it has a great long-term record. Its stock is up 608% in the past 10 years. Yet, its stock is down 8% in 2025.
FirstService operates a large residential/condo property management business across Canada and America. It also operates a mix of brands catering to the home improvement market (like painting, restoration, roofing, and cabinetry).
Its smart acquisition strategy has fuelled 15% compounded annual revenue growth over the past five years. It can use its scale and operating prowess to improve margins and grow the acquired company’s customer base.
Overall, FirstService generates a high recurring income stream from its residential business. It can plough excess cash into a plethora of acquisitions in the wide North American home improvement market.
For a stock that should earn low teens returns for many years ahead, FirstService looks attractive after its valuation recently corrected closer to its mean.
A top Canadian real estate stock
Another Canadian stock worth spending $5,000 on right now is Mainstreet Equity (TSX:MEQ). Similar to the stocks above, Mainstreet has a wonderful track record of creating value for shareholders. Its stock is up 418% in the past 10 years.
Given those returns, you might be surprised to find out that Mainstreet is a real estate company. It owns a portfolio with over 18,500 residential units across Western Canada.
Unlike a real estate investment trust, it only pays a small dividend. It prefers to deploy its excess rental cash into buying well-located residential properties, fixing them up, and then growing their rental rates.
It still has a large market to potentially acquire. Even though the economy has weakened, its rental rates are affordable, which helps keep occupancy elevated.
Recently, the stock dipped. Its valuation looks attractive. If you want to own real estate but don’t want to be a landlord, this is as good a stock as any to buy now.
