The equity market remains volatile amid rising geopolitical tensions. These headwinds could disrupt supply chains and add to market uncertainty. However, there are a few Canadian stocks backed by fundamentally strong businesses that could still see stable demand for their offerings and remain well-positioned to navigate the uncertain conditions.
Moreover, these businesses are better equipped to sustain growth and generate returns that outperform the broader market.
So, if you have $2,000 to invest, here are the best Canadian stocks to buy right now.
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Best Canadian stock #1: Dollarama
Amid uncertainty, Dollarama (TSX:DOL) is one of the best Canadian stocks to buy now. Its defensive business model, ability to expand revenue and earnings, and return capital to shareholders make it a compelling investment.
Dollarama operates a discount retail chain offering a broad assortment of everyday consumable products at low, fixed price points. Its value-driven pricing strategy and extensive product selection, including a strong portfolio of private-label goods, help maintain steady customer traffic even when economic conditions weaken.
Its ability to consistently grow same-store sales and strong profitability has resulted in significant capital gains and steady dividend growth. For instance, Dollarama stock has delivered a compound annual growth rate (CAGR) of about 33% over the last five years, resulting in total capital gains of approximately 311%. Further, it has increased its dividend consistently since 2011.
Looking ahead, Dollarama’s value-pricing strategy and a wide product range will continue to resonate with cost-conscious consumers, driving sales. In addition, new store openings and international expansion opportunities augur well for growth.
Further, Dollarama’s balanced merchandise mix, which includes both national brands and private-label products, augurs well for growth and will likely support margins. Also, partnerships with third-party delivery providers are expanding Dollarama’s reach and helping it to offer more convenience for shoppers. This should result in incremental revenue.
While Dollarama’s top line is expected to grow at a healthy pace, its diversified sourcing capabilities, tight inventory control, and focus on driving operating efficiency position it well to sustain steady earnings growth and deliver attractive long-term returns.
Best Canadian stock #2 CES Energy
Investors looking for the best Canadian stocks could consider CES Energy (TSX:CEU). The company specializes in consumable chemical solutions designed to support oil and gas producers throughout the entire production lifecycle. Its products help improve output, increase operational efficiency, and protect critical infrastructure used in upstream energy operations.
CES Energy is benefiting from steady demand supported by rising service intensity in upstream operations, which requires more sophisticated chemical applications. At the same time, CES has shifted its product mix toward higher-margin, value-added solutions, supporting profitability. Also, its targeted acquisitions have further broadened its technical capabilities, strengthened its competitive positioning, and boosted the company’s financial performance. Over the past five years, CEU stock has delivered significant capital gains and is well-positioned to sustain that momentum.
Geopolitical developments may further support the company’s outlook. Ongoing global conflicts, including the Russia–Ukraine War and escalating tensions in the Middle East involving the U.S., Israel, and Iran, could encourage higher oil and gas development activity in North America. Increased upstream production would likely drive greater demand for specialized chemical solutions, supporting CES Energy’s growth.
Another notable advantage for the company is its relative insulation from tariffs. A significant portion of CES Energy’s revenue is generated in the U.S., and its vertically integrated North American operations provide supply chain flexibility. This structure helps reduce cross-border and cost pressures.
In addition, CES Energy operates with a capital-light business model, which allows it to consistently generate strong free cash flow. This financial flexibility enables it to pursue growth opportunities and return capital to shareholders. Overall, CES Energy is an attractive stock for investors seeking growth and income.
