Where to Invest $3,000 in May 2026

These Canadian companies are delivering rising cash flow, and positioning themselves for years of long-term growth.

Key Points
  • Canadian investors with $3,000 to invest in May 2026 could focus on resilient TSX companies with strong cash flow, steady growth, and long-term expansion potential.
  • Aritzia stands out for its rapid revenue growth, expanding digital and boutique presence, and ability to deliver profitable growth.
  • SECURE Waste Infrastructure offers stable contract-based revenue, infrastructure-driven growth opportunities, and potential upside from expansion projects and acquisitions.

The broader Canadian equity market has held up well despite macro uncertainty and heightened geopolitical risk. While volatility has rattled markets worldwide, several high-quality TSX stocks are still delivering strong earnings growth and outperforming the broader market, making them reliable investments.

So, if you plan to invest $3,000 in May 2026, focus on Canadian stocks that can withstand the current environment and expand their market share. Look for companies generating rising cash flow and positioning themselves for years of long-term growth. These are the kinds of stocks that can compound wealth steadily over time while rewarding patient investors.

In this context, here are two TSX stocks worth investing in in May 2026 and holding for the long term.

Quality Control Inspectors at Waste Management Facility

Source: Getty Images

Aritzia

Aritzia (TSX: ATZ) could be a solid stock to invest in May 2026. The Canadian fashion retailer has the potential to deliver solid growth. It continues to attract strong demand from loyal shoppers while expanding its reach through new boutiques, digital investments, and exclusive in-house fashion brands that help differentiate it from competitors.

The company has shown consistent operational and financial strength. Since 2022, Aritzia has increased revenue at an annual rate of roughly 25%, while adjusted net income has climbed 22% annually. The company’s consistent profitability growth highlights management’s ability to scale operations efficiently even in a challenging retail environment. Its e-commerce business has also expanded at an annualized rate of approximately 23%, reflecting the strength of its multi-channel strategy.

The sustained growth has translated into significant returns. Over the past five years, Aritzia’s stock has risen at a compound annual growth rate (CAGR) of 36%, resulting in total capital gains of 365.3%. The momentum in its stock will likely be sustained, driven by the expansion of boutiques.

Further, the continued demand for its exclusive brands is expected to drive double-digit comparable sales growth. In addition, the investments to enhance its digital platform and mobile shopping application will support its top line.

While pressure from tariffs may affect margins in the short term, its efficient inventory management and a focus on full-price sales should help drive earnings and share price.

SECURE Waste Infrastructure stock

SECURE Waste Infrastructure (TSX: SES) is another attractive stock to invest in now. It operates across waste management, treatment, disposal, and infrastructure services for industrial and energy-sector customers. The diversified operating model adds stability to its business and supports steady growth.

SECURE’s business benefits from its contract-based revenue model, which accounts for a substantial share of revenue. These agreements enhance cash flow visibility and reduce its exposure to commodity price volatility. This results in financial stability and allows the company to allocate capital efficiently, supporting strategic expansion initiatives.

SECUERE’s prospects remain solid, driven by ongoing projects. Several long-cycle water infrastructure assets that advanced during 2025 are expected to begin contributing meaningfully to revenue, potentially creating a new growth catalyst for the business. At the same time, SECURE continues expanding capacity in regions where infrastructure remains constrained, positioning the company to capture additional demand from existing customers.

Another opportunity is the company’s metals recycling segment, where improving operational performance could further boost earnings growth. Importantly, SECURE’s capital allocation strategy is focused on serving existing customer demand and fulfilling contracted volumes, supporting its cash flows.

SECURE could also benefit from strategic acquisitions that could strengthen its infrastructure network and expand recurring cash flow.

Overall, SECURE appears well-positioned to deliver solid growth, which should support a rally in its share price.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.

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