With a full new year in front of Canadian investors, it’s time to envision how you want to position your stock portfolio. Given all that is happening geopolitically, it is likely to be a volatile year.
As a result, it’s a smart idea to have a diverse compilation of stocks. This includes geographic, industry, and sector diversification. Here are four Canadian stocks I plan to buy in 2026 and hold for the years ahead.
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A safe, defensive compounder
For a garbage stock (literally), Waste Connections (TSX:WCN) is by no means a cheap stock. It trades with a price-to-earnings (P/E) ratio of 30. There is some nuance to that, given its acquisitive nature and its depreciable assets.
However, its stock has pulled back 10% in the past year. It’s close to its cheapest valuation since the pandemic.
Waste Connections is a very defensive Canadian stock. It focuses on areas where it can be the dominant local waste provider and garner long-term pricing power. This is a nice stock to hold when the economy or politics look a little shaky.
A top Canadian tech stock
You might need to be a little brave to add Descartes Systems Group (TSX:DSG) right now. Software stocks are getting nailed by concerns that AI will disrupt the necessity of software. Descartes is more than software stock; it is a network.
It operates the Global Logistics Network that connects participants across the supply chain. Its network is supported by a mix of software services that are essential in the modern, fast-changing trade environment.
Descartes is a high-quality business. It has high margins, a great balance sheet, and a steady growth strategy. Like Waste Connections, this Canadian stock is not cheap. However, it is trading at its lowest valuation since 2020. Even though it feels like the worst time, this is the perfect time to add this stock.
A diversified Canadian real estate stock
Colliers International Group (TSX:CIGI) has compounded mid-teens returns for more than two decades. This Canadian stock is positioned to accelerate those returns over the coming years.
Colliers is no longer reliant on its traditional commercial real estate brokerage business (which can be cyclical). Across real estate services (property management, financing, brokerage), investment management, and engineering/advisory, over 70% of its income is now recurring.
Engineering and investment management are becoming substantial. They are assets prime for a spin-out in the next few years (just like FirstService). When its brokerage business starts to hum again, it will only be upside. Colliers has a great management team and high insider ownership — the qualities you want in a long-term stock.
A top software consolidator
Topicus.com (TSXV:TOI) is another stock that will require some bravery. Topicus is a software company, and software has been getting demolished in the past few months.
Topicus is a bit different than a horizontal software provider. It owns many specialized, niche software businesses. It has a unique focus on Europe, where its solutions are catered to financial, education, and government services. These are entrenched services that are hard to replicate.
Topicus is extremely acquisitive. It has a strong balance sheet and a great management team. With software in the crosshairs, it may be able to swipe up companies at better valuations.
It might be a hard time to buy this Canadian stock when it is falling. However, its valuation is attractive. If it can keep executing as it has, there is still more upside ahead.
