2026 has already proved to be a very interesting year for Canadian stocks. Software stocks have been obliterated on fears surrounding artificial intelligence (AI) disruption. Tariffs were announced, tariffs were ruled unlawful, and more tariffs were then announced. Now investors have a war in the Middle East to contend with.
It appears like there is no end to uncertainty and volatility for the Canadian stock market this year. Fortunately, shrewd, long-term investors can use this to their advantage. Near-term market misunderstandings or dislocations can be great buying opportunities.
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A Canadian tech stock that could be set to surge
One of these opportunities is Descartes Systems Group (TSX:DSG). This has been a tough Canadian stock to hold. Descartes stock is down 29% in the past year. Yet, the pullback is a buying opportunity for the patient investor.
As with many sector sell-offs, Descartes has been lumped in with the broader software sector. Certainly, Descartes offers software, but that software is supported by its global logistics network. This provides Descartes with a massive differentiation and a great competitive edge.
Its data and information are proprietary and not easily disrupted by AI. In fact, Descartes can combine its data and AI solutions to improve services and help customers make better and faster decisions.
Descartes just delivered 15% revenue growth and 18% earnings before interest, tax, depreciation, and amortization (EBITDA) growth in 2026. If anything, recent global disruptions have been a net benefit to its business. It has been taking market share and enjoying solid organic growth.
Descartes has $356 million of cash on its balance sheet and no debt. With software multiples declining, it is in a strong position to make key acquisitions in the coming year. Today, Descartes is trading at its lowest valuation since 2013. It’s a very attractive time to add this Canadian stock to your portfolio.
A Canadian retail stock sweeping across the world
Aritzia (TSX:ATZ) has been one of the best-performing stocks on the TSX over the past few years. Its stock is up 112% in the past year and 256% in the past five years.
The reason for this is exceptional execution of its growth strategy. In its most recent quarter, net revenue rose 43% to a new record over $1 billion. EBITDA increased 52% to $207 million and earnings per share rose 84%!
Aritzia’s expansion into the U.S. has been very successful. U.S. sales now eclipse Canadian sales. Aritzia currently has 71 U.S. boutiques. However, it believes there is an opportunity to more than double this store count.
With an expected 12-to-18-month payback on boutiques, Aritzia can be very quick to accrete strong earnings as it grows. New boutiques tend to fuel its digital business, so more stores translate into better online sales as well.
With $620 million of cash and no debt, this Canadian stock has the capital to continue pushing its growth momentum. It has no boutiques internationally. That provides opportunities to further double or triple its total store count from here. While it is likely to expand methodically and cautiously, it still means there is considerable upside as it executes this growth plan.
While its stock is not cheap, it has pulled back 15% since the start of March. It could be an interesting time to start building a position in this high quality Canadian growth stock.
