It is a good habit to review your investments mid-year, as August is the time to buy seasonal stocks before their seasonal rally. A $5,000 investment can grow by 20–50% in the next six months if the expectations from these top Canadian stocks materialize. Even if the expectations don’t materialize, these stocks are worth holding on to for their strong fundamentals.
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Top Canadian stocks to buy with $5,000
Descartes stock
Descartes Systems (TSX:DSG) stock is on the decline as Trump tariffs negatively impact trade volumes. In the latest round of tariffs, US President Donald Trump increased tariffs on Canadian exports from 25% to 35%, 25% on steel and aluminum exports, and 50% on semi-finished copper products. Canada is reciprocating with more tariffs, slowing trade volumes.
Supply chain management solutions provider Descartes Systems has seen its share price fall 8.7% since August 5. Descartes’s flexible model allows clients to use its services for a single consignment or subscribe to only the services they need. Most clients are currently using the global trade intelligence and customs compliance services of Descartes.
The slowing trade volumes have delayed the seasonal rally. However, domestic buying could drive e-commerce volumes and help Descartes offset weakness in international trade. The company may also see an uptick in demand for its logistics solutions as holiday shopping and leisure travel pick up in October through to February 2026. The stock surged 36% during this time last year and could grow another 20–30% this year.
Hive stock
Hive Digital Technologies (TSXV:HIVE) stock surged 9% in the second week of August as it released strong earnings growth in the first quarter of fiscal 2026. As of July 31, the company deployed 15 Exahash per second (EH/s) and is on track to reach 25.0 EH/s by Thanksgiving. The higher hash rate will increase the company’s Bitcoin mining revenue.
The company is also growing its BUZZ high-performance computing (HPC) business by building artificial intelligence capacity. It increased BUZZ revenue by 60% year-over-year to US$4.8 million in the first quarter. The data centre operator aims to earn $100 million in annual revenue from HPC through building and leasing capacity.
Investors have not yet priced in Hive’s expansive growth strategies, making it a stock to buy now before it grows by 50–60%. Another factor running in favor of Hive is Trump’s crypto policy, which will help increase acceptance of Bitcoin and drive its price.
Now is a good time to buy Hive stock while it trades below $3.50. It has the potential to surge past $6 once investors price in these positives.
Topicus.com
Topicus.com (TSXV:TOI) stock dipped as much as 16% in a month from its all-time high in July. This correction came after the stock reported its highest acquisitions worth €210.3 million in a quarter. The company might take a break before another round of aggressive acquisitions.
However, a 16% dip is good enough to buy the stock, as more growth is likely in the first half of 2026 when most annual maintenance invoices are paid. The company will use the cash flows from these invoices to acquire more companies and increase its enterprise value.
Topicus.com has the potential to replicate the success of its parent Constellation Software as it acquires companies across critical verticals, like finance, education, healthcare, and social services.
How to invest $5,000 in these stocks
You could consider investing $2,000 each in Descartes Systems and Topicus.com, either in one go or $1,000 in August and $1,000 in September, as more downside is expected. However, for Hive, a $1,000 investment right now is a good option as the rally is just beginning.
All stocks could surge significantly till February unless there is another policy shock, such as a change in tariffs, which could delay their growth. However, their secular growth trend remains unaffected, making them a good investment even for the longer term.
