3 Top Canadian Stocks to Buy With $500 This September

Three top Canadian stocks just posted strong results, yet their shares have pulled back. Here’s why $500 could work hard in each of them this September.

Key Points
  • Groupe Dynamite grew revenue almost 30% last quarter and raised all three guidance targets, yet its shares trade near half their 52-week high.
  • Kraken Robotics just closed its biggest deal ever, turning a niche sonar maker into a global underwater tech player.
  • 5N Plus says its space solar capacity is sold out through 2027, even as costs squeeze margins for now.

While broader markets are trading near all-time highs, several Canadian stocks remain priced at a discount in September 2026.

Here are three such top Canadian stocks you can consider owning this month. Let’s see why.

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Source: Getty Images

Why these top Canadian stocks look cheaper than their results

Growth stocks rarely move in a straight line. When a company doubles or triples in a year, even a small stumble can trigger a sharp selloff.

Groupe Dynamite (TSX: GRGD) is a clear example. The stock plunged more than 30% in a single trading session in June on concerns over slowing growth, even though first-quarter sales and profits both grew at double-digit rates.

Kraken Robotics (TSXV: PNG) has followed a similar path. Shares traded around $10.23 in March 2026 but slipped to roughly $4.63 by September.

Groupe Dynamite: A top Canadian stock built on six years of discipline

Groupe Dynamite owns the GARAGE and Dynamite fashion brands. For years, GARAGE was a mall store selling jeans and plaid shirts to teenagers. Today it is a Los Angeles-inspired activewear brand aimed at women in their early twenties.

In the fiscal second quarter ended Aug. 1, revenue jumped 29.8% to $423.6 million, while revenue south of the border grew 52.2%. It reported an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin of 44.3% as it sold 95% of products at full price.

“For 6 consecutive years, we have progressively improved key brand and financial metrics across the business. That’s not luck. There’s no such thing as 6 years of overnight success,” CEO Andrew Lutfy said on the call.

Management raised full-year revenue growth guidance to between 25% and 27%. Moreover, analysts forecast earnings to grow from $2.25 per share in fiscal 2026 (ended in January) to $4.42 per share in fiscal 2029. If the TSX stock is priced at 15 times forward earnings, it could surge 50% (after adjusting for dividends) within the next 30 months.

Kraken Robotics: A Canadian defense stock riding the underwater boom

Kraken Robotics builds sonar systems, underwater batteries, and imaging tools for navies and offshore energy firms.

It reported $27 million in revenue and a 59% gross margin in Q2. In July, it closed the acquisition of Covelya Group.

The combined entity now has about 1,200 employees and more than 110 active or pending patents. Kraken has booked $355 million in product orders so far in 2026, and it expects adjusted EBITDA between $65 million and $75 million this year.

CEO Greg Reid put the opportunity simply on the Aug. 27 call: “The undersea domain is getting more contested.”

Navies want underwater drones to hunt mines and protect cables. Kraken sells the batteries and sensors inside many of those drones, making it part of an expanding addressable market.

Given consensus price targets, the Canadian stock trades at a discount of almost 95%.

5N Plus: A top Canadian stock with a sold-out order book

5N Plus (TSX: VNP) makes specialty materials used in solar panels and satellites. Its AZUR SPACE unit produces solar cells that power spacecraft.

In Q2, it reported revenue of $122.4 million, up 28% year over year, while EBITDA rose 10% to $26.6 million. Gross margins narrowed by 400 basis points as metal costs climbed and equipment needed unplanned repairs.

When asked about the AZUR order book, CEO Richard Perron was blunt: “2026 is sold out; 2027 is sold out.”

Notably, net debt fell to $23.7 million from $50.3 million at the end of 2025. Over the last five years, VNP stock is up more than 900%. However, it still trades at a 50% discount to consensus price targets.

How to buy top Canadian stocks with $500

Splitting $500 across all three stocks offers diversification across sectors such as retail, defence, and clean energy.

Groupe Dynamite faces tough comparisons, Kraken must integrate a major acquisition, and 5N Plus must manage rising costs. But each company offers something rare: strong demand, clear growth plans, and management teams that keep delivering.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Groupe Dynamite and Kraken Robotics. The Motley Fool has a disclosure policy.

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