4 Top Stocks to Buy for the Second Half of 2025

Discover four stocks primed for seasonal rallies or unique growth opportunities during the second half of the year.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

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"Risk comes from not knowing what you're doing." — Warren Buffett

Published August 28, 2025 3:45 pm EDT

Investing in seasonal stocks can give you short-term returns and also help you accumulate more stocks at the dip. Some stocks enjoy a seasonal uptrend in the first half and some in the second half. This seasonality comes as revenue or cash flows are skewed to a particular quarter. Stock prices follow the cash trail, which drives seasonal rallies.

Partially complete jigsaw puzzle with scattered missing pieces — Source: Getty Images

Four stocks to buy in the second half

We are already two months into the second half of the year, and the seasonal rally has yet to pick up for a few stocks because of the latest August tariffs.

Shopify stock

It is a no-brainer that the e-commerce stock Shopify (TSX: SHOP) rides the Santa Claus rally as consumers go on a spending spree, companies stock up festive-special items for Halloween, Black Friday, Thanksgiving, Christmas, and more. Since Shopify has expanded beyond North America, it also enjoys festive season sales in other countries. Shopify is prepping for the festival order volumes. It has integrated with DHL to enhance international shipping for U.S. merchants.

For the last three years, from 2022 to 2024, Shopify stock surged 80-100% between October and early February. This year is slightly different as tariffs have affected consumer spending. However, the Bank of Canada is cutting interest rates to boost spending and control tariff-induced inflation.

The stock is currently in the correction mode, falling 9.5% after surging 30% in the first week of August on strong second-quarter earnings. More corrections could come till the Relative Strength Index (RSI) falls from 56 to below 40. The RSI measures the price momentum to determine if the stock is oversold (under 30) or overbought. You could buy the stock now or wait till mid-September.

Air Canada stock

Air Canada (TSX: AC) is a good seasonal stock as travel demand increases during the summer and holiday season. As ticket sales are the highest during these times, Air Canada stock rallies to $23 and $26, respectively. The stock developed resistance at these price levels after the pandemic. It is because the airline raised significant debt and equity capital, which diluted its earnings and increased its balance sheet leverage.

Hence, the airline stock did not recover to its pre-pandemic level of $50, despite windfall profits during the 2023-2024 revenge travel. The airline has significantly reduced its net debt to $4.8 billion in the second quarter of 2025 from $7.5 billion in 2022 and has started a share buyback. It aims to reduce diluted outstanding shares to less than 300 million by 2030. This could help Air Canada’s stock price to gradually break its $26 cap.

In the short term, it could see a holiday season rally. The early signs are already visible with advance ticket sales rising 24% year over year to $5.4 billion in the first half of 2025. The stock is currently trading at $19.6 and has a 32% upside potential for the second half.

Topicus.com

Topicus.com (TSXV: TOI) is not a seasonal stock, but its cash flows are skewed in the first half as most of the annual maintenance fee is paid at that time. The company acquires vertical-specific software companies, mainly in Europe, that earn recurring cash flow from maintenance. It uses this cash flow to acquire more companies. Every year, cash flow increases as the maintenance fee of newly acquired companies is also added.

Topicus.com stock is correcting from its July peak. It is already down 13.8% with an RSI of 40, hinting that it is closer to being oversold. Over the last four years, the stock has rallied 45-60% in the first half. You could consider buying this stock at the current dip and book your spot in the first-half rally of 2026.

Hive

HIVE Digital Technologies (TSXV:HIVE) is not a seasonal but an opportunistic buy. It has already surged 100% from its April low and could go up to $8 as it expands its Exahash per second (EH/s) capacity from six in February to 25 by November. Higher capacity means it can mine more Bitcoin and grow its revenue. You can consider buying this stock for the rally to November.