August is the month of correction as second-quarter earnings reflect the financial impact of tariffs on different companies. Moreover, the recent tariff update, in which the United States increased tariffs on several Canadian exports from 25% to 35%, pulled down stocks with tariff exposure. Furthermore, Canada’s weak jobs data for July of net 40,800 jobs losses created a bearish momentum, sending several consumer-related stocks down.
This dip has created an opportunity to buy stocks before the December-February rally.
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Seasonal stocks to buy on the dip
Air Canada (TSX: AC) stock has dipped 14% after the airline reported a 54.6% year-over-year decline in net profit due to a slowdown in travel demand to the United States, which accounts for 21.6% of its revenue. Despite weak transborder travel, the stock surged 46% in the second quarter owing to strong demand from the Atlantic, Domestic, and Latin American markets. There was also a risk of a strike from flight attendants.
Air Canada has finally reached an agreement with the staff after a four-day strike and will restore full operations in a week. While transborder demand may remain weak, the airline will divert capacity to other routes to make the most of the holiday season travel. You could consider buying the stock below $20 and selling it at its seasonal peak of $25.
Shopify (TSX: SHOP) stock is receding after a sharp 30% jump in early August, when the company reported 31% revenue growth in the second quarter of 2025. The revenue was driven by growth in Europe, North America, and the Asia Pacific. It also reported a stable third-quarter revenue outlook of mid-to-high twenties percentage rate and a mid-to-high teens free cash flow margin.
You could consider buying Shopify stock now, as it could increase by around 50% between mid-October and February, riding the holiday season rally. You could buy the stock at around $190 and sell at $285 before a seasonal dip in March.
Long-term stocks to buy on the dip and hold
Descartes Systems (TSX: DSG) is a stock to buy now while it is down 22% from its all-time high of $177.98. The stock is in a downturn as the tariff war has reduced trade volumes and affected its sales. However, a strong demand for its Global Trade Intelligence and Compliance solutions hints at a possible surge in future revenue when pent-up trades are realized. The tariff situation is unlikely to last long. Even if it does, companies will look for alternatives to live with the tariff. And Descartes will be prepared to help companies adjust their supply chain and execute trade under the new environment.
Descartes’ stock could recover as trade normalizes. DSG could continue its long-term rally of 20% average annual growth.
Topicus.com (TSXV: TOI) slipped almost 15% from its July high after the company accelerated its acquisitions, which boosted its revenue by 20% year-over-year. The second half could be relatively slow for acquisitions, which will keep the stock price low before the next rally in the first half of 2026. Most of the maintenance invoices are due in the first quarter, which pushes the cash flow to the first half. You could consider buying this stock at the dip and holding it for the long term, as every new acquisition is accretive to its cash flows.
Dividend stock to buy the dip
The portfolio diversification is complete with a high-yield dividend stock, Telus Corporation (TSX: T). The telco has withstood the test of time as the industry underwent a remarkable regulatory change that triggered a price war and shift in market share. The industry has adapted to the new normal. Telus has reduced its dividend growth target for the next three years, lowered its capital expenditure, and is now focused on reducing costs and deleveraging its balance sheet.
These efforts will gradually reflect in their profit margins, which were stressed by the price war and falling average revenue per user. It is a good time to buy the stock and lock in a 7.3% yield.
