2 Canadian Stocks That Are Slam Dunks With $500

Buy these two TSX stocks to make the most of your investment capital by getting the best value for money on your investment.

| More on:
Canadian Dollars bills

Source: Getty Images

Key Points

  • Canadian equities are surging — the S&P/TSX is up about 30.75% from its 52‑week low, so focus on diligent, long‑term picks rather than chasing the broad rally.
  • Two TSX ideas: Aritzia (TSX:ATZ) — $9.68B apparel retailer with Q1 FY2026 revenue +33% and expanding retail/e‑commerce presence; and Celestica (TSX:CLS) — $38.9B supply‑chain/tech‑infrastructure provider launching the SC6110 for AI/HPC workloads, with shares up ~500% from their 52‑week low.
  • 5 stocks our experts like better than [Aritzia] >

Canadian equities have surged for several weeks, with the S&P/TSX Composite Index hitting new all-time highs week in and week out. As of this writing, the Canadian benchmark index is up by 30.75% from its 52-week low, showing considerable strength in the Canadian stock market.

As the market continues to post one winning week after the next, many new investors might be struggling with finding the best deals to make the most of the bull market. Investing in just any stock when the entire market is rallying might not be the best way to go. It is better to conduct your due diligence to pick investments that can deliver substantial long-term returns even after all the recent gains.

Here are two TSX stocks that you can consider adding to your self-directed investment portfolio for this purpose.

Aritzia

Aritzia Inc. (TSX:ATZ) is a $9.68 billion market-cap integrated design house with several exclusive fashion brands under its belt. The company designs apparel and accessories for its brands, comprising everything from t-shirts to dresses, blouses, pants, and much more. The company’s market is primarily in the U.S. and Canada, with most of its revenue coming through retail operations, followed by its e-commerce segment.

The company’s first quarter of fiscal 2026 saw its net revenue increase by 33% from the same period in the previous year. Its spring and summer collections had unanticipated demand, leading to double-digit growth across all geographies and channels. With more openings of boutiques lined up for the next year and increasing e-commerce presence, it might have plenty more growth to offer. As of this writing, it trades for $84.29 per share, hovering around new all-time highs with more runway ahead.

Celestica

Celestica Inc. (TSX:CLS) is a $38.90 billion market capitalization supply chain solution provider, offering tech-based solutions to clients worldwide. The company recently announced its SC6110 enterprise storage controller that will deliver peak performance, allow easy scalability, and offer high availability. Focusing on mission-critical workloads like artificial intelligence infrastructure, high-performance computing, and high-frequency trading, the launch of its new product will further its goals to align with the need for data-heavy enterprise solutions.

As of this writing, Celestica stock trades for $338.16 per share, up by almost 500% from its 52-week low. Demand for its solutions remains high, and its diversified exposure to high-demand tech infrastructure means it has plenty more growth to offer. It might be a bargain at current levels.

Foolish takeaway

Investing in companies with the ability to offer more growth beyond current levels based on the strength of the underlying businesses, solid long-term potential, and growing demand can be an excellent way to make the most of your capital. To this end, Aritzia stock and Celestica stock appear to be good investments to consider. While I would not put all my eggs in two baskets, I would consider allocating a portion of my investment capital to these two long-term TSX winners.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy.

More on Investing

The letters AI glowing on a circuit board processor.
Tech Stocks

Meet the Canadian Semiconductor Stock Up 150% This Year

Given its healthy growth outlook and reasonable valuation, 5N Plus would be a compelling buy at these levels.

Read more »

top TSX stocks to buy
Stocks for Beginners

Top Canadian Stocks to Buy With $5,000 in 2026

If you are looking to invest $5,000 in 2026, these top Canadian stocks stand out for their solid momentum, financial…

Read more »

Dam of hydroelectric power plant in Canadian Rockies
Energy Stocks

2 Stocks Worth Buying and Holding in a TFSA Right Now

Given their regulated business model, visible growth trajectory, and reliable income stream, these two Canadian stocks are ideal for your…

Read more »

money goes up and down in balance
Tech Stocks

1 Magnificent Canadian Stock Down 26% to Buy and Hold Forever

Lightspeed isn’t the pandemic high-flyer anymore and that reset may be exactly what gives patient investors a better-risk, better-price entry…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

2 Magnificent TSX Dividend Stocks Down 35% to Buy and Hold Forever

These two top TSX dividend stocks are both high-quality businesses and trading unbelievably cheap, making them two of the best…

Read more »

happy woman throws cash
Dividend Stocks

This 7.5% Dividend Stock Sends Cash to Investors Every Single Month

If you want TFSA-friendly income you can actually feel each month, this beaten-down REIT offers a high yield while it…

Read more »

dividends grow over time
Dividend Stocks

1 Smart Buy-and-Hold Canadian Stock

This ultra-reliable Canadian stock is the perfect business to buy now and hold in your portfolio for decades to come.

Read more »

man touches brain to show a good idea
Stocks for Beginners

The No-Brainer Canadian Stocks I’d Buy With $5,000 Right Now

Explore promising Canadian stocks to buy now. Invest $5,000 wisely for new opportunities and growth in 2027.

Read more »