You don’t need to be a math genius or crunch large numbers to get good returns. All you need is a strong reason that will grow the company’s revenue and profits, which makes you bullish on the stock. As long as your reason to invest is intact, investing in stocks is as simple as buying the dip.
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Two simple Canadian stocks to buy now
Descartes Systems
Descartes Systems (TSX: DSG) stock has dipped 30% in the last 12 months. The reason to buy this stock is its stable revenue growth and 45% adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin. Descartes’s solutions – like route tracking, compliance, Global Trade Intelligence, and e-commerce – help companies transmit goods, services, and information. It caters to all types of trades, from international to local to doorstep delivery. That has not changed in 2025.
Its solutions are still relevant for companies needing to plan and execute their trade. What has changed is the global trade landscape, which is seeing a structural shift due to US tariffs. Several US trade partners are diversifying into new markets to reduce dependence on United States’ exports. This shift has impacted trade volumes in the short term, but it creates more opportunities for route planning, customs, and compliance.
And Descartes is well-placed to facilitate this shift. It has the solutions, scalability, and Global Logistics Network (GLN) to help companies adjust to the new trade deals. Once the new order is set, Descartes could see accelerated revenue growth, which could drive up its stock price.
If we use historical data as a reference, Descartes’s stock fell 20% during the last quarter of 2018 when the US-China trade war was at its peak. However, its share price jumped 40% in the first six months of 2019 as trade volumes recovered.
The management has cut costs to sustain its 45% adjusted EBITDA margin amid low trade. It has zero debt and a $240.6 million cash reserve, which is sufficient to withstand a slowdown. All these factors show that the tariff-induced dip is short term and its long-term growth potential remains intact, making it a buy right now.
HIVE stock
HIVE Digital Solutions (TSXV:HIVE) stock has dipped 62% since October, when the US government shutdown began. However, behind Hive’s dip is the 33% dip in Bitcoin prices. After all, Hive’s biggest asset continues to be its Bitcoin inventory, which it has mined over the years. How does it impact its operations?
Hive earns 94% of its revenue from Bitcoin mining, which is influenced by Bitcoin prices. Bitcoin prices fluctuate depending on liquidity conditions and investor sentiment. The recent dip sent the Bitcoin price to its seven-month low. Miners took this opportunity and started accumulating more Bitcoins. They are also holding the Bitcoins they mined instead of selling them.
Hive sells Bitcoin when it needs capital to invest in capacity expansion. It has funded its expansion from six Exahash per second (EH/s) to 25 EH/s using its Bitcoin inventory without taking any debt. It has been reducing the direct cost of mining to remain profitable even when Bitcoin prices fall.
BTC mining is no longer as profitable as before due to the halving event. Hence, Hive is diversifying its revenue stream to BUZZ high performance computing (HPC). Before 2023, the reason to buy Hive was to get exposure to BTC price volatility. Buy at $4 or below and sell at $7 or above. After Hive’s shift to HPC, the reason has shifted to the growing adoption of artificial intelligence (AI).
Hive is looking to tap the demand for AI cloud computing by renting its Nvidia graphics processing unit (GPU)-powered data centres. HPC is a high-margin business, and if Hive secures more corporate clients like Bell Canada, BUZZ could become a major contributor to its revenue. The dip in BTC price does not affect Hive’s HPC growth, making it a stock to buy near $4 and hold for the long term.
