Just Released: 5 Top Stocks to Buy in August

August will bring five very different earnings “report cards,” and the numbers will show which stories are holding up.

Key Points
  • Shopify, Nutrien, TD, MDA Space, and Hydro One offer five separate engines: e-commerce, fertilizer, banking, space, and power grids.
  • Earnings are a check-in, not a trading game, so the goal is durable demand and cash flow.
  • Valuation and execution risks are real, so building positions slowly can beat guessing short-term moves.

August is about to deliver five corporate report cards covering everything from online shopping and fertilizer to banking, satellites, and Ontario’s power grid. A single quarter won’t reveal each company’s destiny, although it can expose whether an attractive story is producing attractive numbers. Investors are about to receive plenty of both.

A monthly stock list shouldn’t become a wager on which ticker jumps after earnings. Anyone buying stocks in Canada should look for durable demand, improving cash flow, sensible valuation, and a catalyst capable of surviving beyond August. Earnings simply provide a conveniently timed inspection.

The Bank of Canada recently said economic growth is improving, while warning that American trade policy and the Middle East conflict create considerable uncertainty (hello, new 50% tariffs this month). Meanwhile, the TSX sits near record territory. This isn’t exactly the moment to purchase five versions of the same expensive idea, so the following companies earn their places through very different business engines.

four people hold happy emoji masks

Source: Getty Images

SHOP

Shopify (TSX: SHOP) supplies the software, payments, and services businesses use to sell online and in stores. First-quarter revenue increased 34%, while the free-cash-flow margin reached 15%. Management expects high-twenties revenue growth when second-quarter results arrive August 5.

At $157.86, the shares sit approximately 38% below their 52-week high, although the growth valuation still leaves little room for disappointment. Consumer weakness, tariffs, and AI competition remain risks, enticing merchants towards an e-commerce platform that can lower overhead.

NTR

Nutrien (TSX: NTR) produces potash, nitrogen, and phosphate while selling crop supplies directly to farmers. Record first-quarter potash volumes and stronger prices lifted potash adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 30%.

Results arrive after the market closes August 5. At $96.48, the US$0.55 quarterly dividend yields approximately 3.2%. Fertilizer prices can wilt rapidly, making a bank turnaround a useful counterweight.

TD

Toronto-Dominion Bank (TSX: TD) operates banking, wealth management, insurance, and capital markets businesses across Canada and the United States. Second-quarter adjusted earnings per share (EPS) increased 21%, while its 14.3% CET1 capital ratio provides protection against future losses.

Third-quarter results for TD Stock arrive August 27. At $167.87, the annualized dividend yields roughly 2.7%. Credit losses and the expensive American anti-money-laundering overhaul remain risks, which leaves room for a faster growth story for TD Stock.

MDA

MDA Space (TSX: MDA) builds satellites, space robotics, and Earth-observation systems. Its first-quarter backlog reached $3.7 billion, before the company secured a $688 million Canadian Space Agency satellite contract in June.

Second-quarter results land August 7. At $43.37, the shares trade approximately 36% below their 52-week high. Contract execution, customer concentration, and dilution deserve attention, leaving one steadier grid operator to lower the pulse.

H

Finally, Hydro One (TSX: H) owns Ontario’s electricity transmission network and much of its distribution system. The company plans approximately $3.3 billion in capital investment during 2026, expanding the regulated assets from which it earns returns.

Second-quarter results arrive August 12. At $59.61, the stock trades near 26 times trailing earnings, so reliability certainly hasn’t wandered into the clearance aisle. That premium valuation and regulatory decisions are the principal risks.

Bottom line

If investors placed $7,000 in each company, and every stock repeated its 10-year compound annual ground rate (CAGR) for another year, the five positions could produce results like these.

COMPANYRECENT PRICESHARESACTUAL INVESTMENTHISTORICAL PRICE CAGRPROJECTED 1-YEAR PRICEANNUAL DIVIDEND INCOMEPROJECTED PRICE GAINPROJECTED INVESTMENT TOTAL
SHOP$157.8644$6,945.8444.1%$227.51$0.00$3,064.65$10,010.49
NTR$96.4872$6,946.564.0%$100.33$223.07$277.05$7,223.61
TD$167.8741$6,882.6711.6%$187.30$183.68$796.60$7,679.27
MDA$43.37161$6,982.5723.5%$53.57$0.00$1,642.10$8,624.67
H$59.61117$6,974.378.7%$64.78$165.25$605.27$7,579.64
TOTAL—435$34,732.01——$572.00$6,385.67$41,117.68

I’d build these positions gradually instead of attempting five earnings-season bullseyes. Combining established Canadian blue-chip stocks with faster growers should make August the beginning of a much longer holding period, rather than one frantic month of guessing.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends MDA Space and Nutrien. The Motley Fool has a disclosure policy.

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