Each new year brings more opportunities for Canadian investors to tap into and more risks for to avoid as they invest in the stock market. Before you splurge all your cash on luxuries you might or might not need, I would advise setting $5,000 aside to put to work in the stock market. I am talking about the kind of stocks that you can invest in right now and be glad you added to your self-directed portfolio when January 2027 ends.
Here are two of the top Canadian stocks to buy right now for substantial long-term gains, ripe for the picking at current levels.
Descartes Systems Group
Descartes Systems Group Inc. (TSX:DSG) is a $9.6 billion market capitalization Canadian company offering on-demand Software-as-a-Service (SaaS) solutions to clients worldwide. Its solutions focus on improving security, sustainability, and the productivity of logistics-intensive businesses.
The Waterloo-headquartered company has seen business improve significantly over the years, and its recent performance continues that momentum. Q3 of fiscal 2025 saw DSG stock report an 11% year-over-year increase in its reported revenue, which also broke its previous records.
The strong results show how the increased demand for logistics solutions and AI is creating powerful tailwinds for firms like Descartes Systems. As of this writing, DSG stock trades for $111.92 per share, and it is too cheap to ignore right now.
Lundin Gold
Lundin Gold Inc. (TSX:LUG) is a contrary pick if you compare it to DSG stock. The $29.2 billion market-cap company, headquartered in Vancouver, is a gold stock that owns and operates one of the highest-grade operating gold mines worldwide. As of this writing, Lundin Gold stock trades for $120.92 per share, up by a massive 254.9% from its 52-week low and hovering around new all-time highs of around $124 per share.
People are adamant that gold prices will fall. However, geopolitical tensions and the fears of conflicts springing up around the world are keeping people on their toes. As fears of recession sink in, a growing number of people are exiting equity markets and buying gold. If you want exposure to the commodity while retaining the liquidity of stock market investing, gold stocks like LUG can offer a good alternative.
If you consider gold’s performance during any crises over the years, it gets stronger. Higher gold prices mean gold-related businesses have better margins. In turn, stocks like Lundin Gold can become good investments to own to hedge against market downturns.
Foolish takeaway
Where Descartes Systems stock provides you exposure to the booming AI and broader tech space, Lundin Group stock offers a hedge against economic downturns through exposure to safe-haven assets without exiting the market. If you have $5,000 of investable cash and space left over in your Tax-Free Savings Account (TFSA), I would recommend that you consider allocating some of it to these two TSX stocks.
