The way 2026 is shaping up, five Canadian stocks have come into the limelight. They are either receiving windfall gains from cyclical peaks or could see bottoming out. In either case, the momentum will be significant and news-driven.
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Five Canadian stocks to watch in 2026
The five Canadian stocks I am talking about are at the center of geopolitical situations and holding strong. Their management is closely monitoring macroeconomic developments and is ready for both good and bad situations.
Descartes Systems
The first stock to add to your 2026 watchlist is supply chain management solutions provider Descartes Systems (TSX: DSG). The stock has been down since the tariff war began. The management knew that tough times were coming, so it slashed its workforce and focused on acquiring companies with its cash. These activities helped it grow revenue by 12% and net income by 14% in 2025.
Descartes is debt-free and has been growing its cash balance to withstand these times of trade uncertainty. While its Global Trade Intelligence and transportation management solutions continue to generate revenue, the stock will surge when trade recovers. You can buy the dip and hold it for the next five to seven years, waiting for that recovery period, when geopolitical situations stabilize.
Lundin Gold stock
In the meantime, you can buy Lundin Gold (TSX: LUG) stock as the gold price will rise amid growing uncertainty. The price of gold began falling when the Iran war began. The gold price falls when interest rates rise, and vice versa. Right now, central banks cannot cut interest rates as the energy shock is increasing inflation. But the gold price will rise when oil prices cool and central banks begin to cut interest rates and build gold reserves, which they spent on expensive trade.
Lundin Gold stock surged more than 17% in the first week of April as the US-Iran war paused for talks. It could fall again if the war escalates. That is the time to buy the stock as the gold price will surge in the latter half of the year.
Suncor Energy stock
Suncor Energy (TSX: SU) stock is at the center of the trade war as Canada’s largest integrated oil company. It exports most of its oil to the United States. The Canadian government’s push to export oil to China and India will benefit Suncor, as it will be able to produce more oil. The oil company is at its cyclical peak as the WTI price surged past US$100. It used the frequent oil shocks from several wars to earn windfall gains, reducing net debt to US$8 billion and lowering its breakeven point.
The stock is worth adding to your watchlist, but not a buy at the moment, as it trades near its all-time high. Its share price will correct when the oil price falls, creating a buying opportunity.
Aecon Group
Aecon Group (TSX: ARE) stock is worth adding to your watchlist and even buying at the dip in 2026. This construction company is a key beneficiary of Canada’s infrastructure push. It has secured orders to build nuclear plants and data centres. The $10.7 billion order backlog gives visibility into future revenue. Its share price will jump on new order wins and fall on project delays.
Overall, the stock could see growth in the next five years as it rides the Canadian infrastructure and artificial intelligence (AI) wave.
Bombardier stock
The fifth stock to add to your watchlist is Bombardier (TSX: BBD.B), as July 1 will see a sharp stock price momentum. That is the date when the United States-Mexico-Canada Agreement (USMCA) is up for renewal. Had the situation been different, the renewal would be routine. However, the US trade protectionism leaves the outcome of the free trade agreement uncertain.
Bombardier is a beneficiary of the USMCA, as most of its raw materials are traded between the three nations. If the trade agreement is maintained, Bombardier stock could rise. Otherwise, all eyes would be on the financial impact of tariffs on Bombardier. Thankfully, the management has strengthened its balance sheet by reducing net debt to 1.9 times its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization.
