2 Top Canadian Stocks to Buy Right Now With $250 

Buy-the-dip investors should pay attention to the trading patterns of these seasonal and cyclical stocks.

Key Points
  • Air Canada presents a seasonal buying opportunity due to predictable rallies during peak travel seasons, offering a chance for short-term gains, but should be complemented with long-term investments to diversify and compound returns.
  • Canadian National Railway, a cyclical stock affected by trade uncertainties, is positioned for recovery with attractive valuations, making it a good buy for dividend income as trade volumes stabilize and discretionary spending potentially increases.
  • 5 stocks our experts like better than Air Canada.

Investing is about one’s comfort and understanding of the stock. While you can mimic the portfolio of different analysts to generate returns in the long term, a buy right now approach only works when you know what you are getting into. Rushing into investing can be dangerous if you are chasing the rally of a growth stock. Instead, you can use a buy-the-dip approach for seasonal and cyclical stocks that have a set pattern. In some years, they might deviate from the pattern, but the pattern will return in the normal course of business.

person stacking rocks by the lake

Source: Getty Images

Two stocks to invest $250 in right now

Timing the market is a fool’s play, but these stocks make a strong case for buying the dip.

A seasonal stock to buy right now

Air Canada (TSX: AC) is a seasonal stock that tends to rally to $25 in the summer peak of June and the holiday season peak of November to January. Behind the rally are the advanced ticket sales, especially for the cross-border route.

In 2025, the tariff war significantly affected the passenger volumes travelling to the US. However, higher demand in domestic and Atlantic travel offset the dip in US transborder demand, and the airline reported overall positive revenue growth in the second quarter. This saw Air Canada stock ride its summer season rally of 66% from $14 on April 1 to $23.29 on July 10.

The airline is now set to ride its holiday season rally and has already bottomed out at $17.56 in September. The rally has just begun, and the stock price could touch $25. However, you can keep a slightly conservative target and sell it at $24. Even if there is a demand shock, investors can buy the stock at the current dip and hold it for the summer season rally.

A 30% rally in less than a year is a quick way to build money only by buying two to three seasonal stocks. You can compound the returns by reinvesting the profits in long-term growth stocks, like Descartes Systems.

Investor tip

Suppose you invest $1,000 in Air Canada and sell the stock for $1,300. The $300 gain can be reinvested in long-term growth stocks to compound your returns and also diversify your investments. Remember, seasonal stocks like Air Canada may not be a good investment for your core portfolio of wealth creation through long-term investing. Cyclical stocks are vulnerable to consumer demand.

Cyclical stock to buy for dividends

Canadian National Railway (TSX: CNR) stock bottomed out at its four-year low of $126.11 in August. The market has now absorbed tariff war uncertainty. They are now looking for new opportunities in alternative supply chains. All the trade-related stocks are seeing a recovery, including Canadian National Railway, which transports petroleum and chemicals, automotives, minerals, and forest products between Canada and the United States.

The trade war reduced the company’s revenue by 1% in the second quarter and forced it to lower its 2025 earnings per share guidance. This reduced the stock price and brought it to an attractive valuation of 4.9 times price-to-sales ratio and 16 times forward price-to-earnings ratio. The cyclical downturn that began in 2024 due to a slowdown in high-yield automotive volumes is nearing an end.

The Bank of Canada’s interest rate cuts could boost discretionary spending, and the shutdown of the US government could give temporary relief from tariff shocks. The trade-related stocks could ride a recovery rally, making them a buy right now.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Air Canada, Canadian National Railway, and Descartes Systems Group. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

data analyze research
Dividend Stocks

Before You Buy a Dividend Stock for Retirement, Check This Number

A tempting dividend yield means little if the company doesn't generate enough earnings or cash flow to support it.

Read more »

Young adult concentrates on laptop screen
Stocks for Beginners

New to Investing? Here Are 5 Canadian Stocks to Hold Forever

These five Canadian companies have established businesses with long-term growth opportunities and could form a solid foundation for a patient…

Read more »

woman looks at iPhone
Dividend Stocks

RESP or RRSP? Where Should Your Next Contribution Go?

RESP grants can make the first education contribution attractive, but retirement savings shouldn't disappear while parents fund their children.

Read more »

senior couple looks at investing statements
Energy Stocks

Your GIC Just Matured: Should You Lock the Money Up Again?

Lower GIC rates make maturity a useful moment to reconsider how much money really needs a guaranteed return.

Read more »

Train cars pass over trestle bridge in the mountains
Stocks for Beginners

When the Hottest Stocks Cool Off, I’d Look at This TSX Business

Hot stocks eventually face tougher expectations, which can make durable cash-generating businesses worth another look.

Read more »

you're never too young or old to start investing in stocks
Energy Stocks

Can You Help Your Kids Without Falling Behind on Retirement?

Parents can help fund their children’s future without sacrificing the retirement savings they’ll eventually need themselves.

Read more »

ETFs can contain investments such as stocks
Dividend Stocks

Only 13% of Stock Funds Beat the Index: Here’s What I’d Buy Instead

Most active U.S. large-cap funds failed to beat passive competitors over the past decade, making low-cost indexing difficult to ignore.

Read more »

Start line on the highway
Stocks for Beginners

3 Canadian Stocks to Build Generational Wealth

With resilient business models, consistent financial performance, and compelling long-term growth prospects, these three Canadian stocks could serve as strong…

Read more »