The Canadian Stocks I'd Buy With $7,000 Right Now

The Canadian Stocks I’d Buy With $7,000 Right Now

Investing in stocks can be rewarding. Examine the current climate for energy and AI stocks following the recent market changes.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

Social Media Profiles

Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published November 11, 9:00 pm EST

The market is ripe for energy and artificial intelligence (AI) stocks, as a sharp dip after the US mid-term elections has created a buying opportunity right now. With less than 50 days left for the 2026 tax year to end, now is the right time to invest that $7,000 Tax-Free Savings Account (TFSA) contribution limit.

Canadian Red maple leaves seamless wallpaper pattern — Source: Getty Images

Where to invest $7,000 right now?

The latest third-quarter earnings showed a positive outlook in the industrial and electronics manufacturing segment.

Celestica

Celestica (TSX: CLS) stock has crashed 47% since October 7, when investor confidence in AI was shaken. Capital markets became skeptical of the increasing capital AI was demanding. Meta plans to raise US$97.5 billion in equity capital to fund AI expansion. This news followed the win of Democrats in the US mid-term elections, making investors wary of a slowdown in AI expansion. Plus, the recent Nvidia CEO scandal has added to the hardware worries, and the sentiment around AI hardware has turned fearful.

Thus, it is no shock that electronics manufacturer Celestica saw its stock price fall to its 52-week low, despite strong earnings. On October 27, Celestica reported its third-quarter earnings and it once again beat revenue and earnings per share (EPS) estimates, led by strong growth in compute and storage solutions from hyperscalers.

Among its four major hyperscaler clients, Meta, Google, OpenAI, and Amazon, two faced a fallback as Google saw AI Overviews cannibalize AdSense revenue, and Meta announced fresh equity. Despite the fallbacks, Celestica expects its 2026 revenue to grow 69% to US$21 billion and EPS to grow 91% to $11.55. The most interesting part of Celestica’s earnings was that the company paid down its debt and is in a net cash position of US$3.2 billion. This shows it is prepared for a 2027 slowdown and ready to bounce back as AI investments recover. The stock is trading at 1.5 times its sales per share, after its peak of 3.2 times in June 2026, showing upside potential.

Bombardier stock

Another stock worth investing in before the end of 2026 is Bombardier (TSX: BBD.B). The business jet maker is in its peak season when maximum aircraft deliveries happen. Its order book continued to grow to US$22.2 billion in the third quarter of 2026 from $21.8 billion in the second quarter. Bombardier navigated escalating US-Canada trade tensions strategically by increasing investment in the United States. The third quarter saw marginal revenue growth of 3% due to low aircraft deliveries. However, Bombardier increased its free cash flow outlook for 2026 to US$1.3 billion as it has already achieved the previous target of US$1 billion. Moreover, the company has reduced its long-term debt by US$1.1 billion to US$4.05 billion, with no maturity until 2030.

Strong fundamentals and a robust order book could drive the stock price up 20–40% by March 2027, if everything else remains normal.

Canadian Natural Resources stock

Canadian Natural Resources (TSX: CNQ) is a stock to buy for its next dividend growth in March 2027. The oil and gas company is at a sweet spot as Canada invests in a West Coast pipeline to open a new export market. In the meantime, current demand remains robust. The US mid-term elections pulled down oil prices, correcting the inflated October prices. Even at US$86.7/barrel WTI crude, Canadian Natural Resources has ample flexibility to continue paying its $2.50 per share dividend and even grow it.

The company has achieved its net debt target of $13 billion by increasing its cash reserves to $4.5 billion. It will accelerate its share buyback in November and December, allocating an anticipated $1.6 billion in free cash flow compared to $3.8 billion in the 10 months of 2026. This accelerated buyback and reduction in net debt could help CNQ grow its dividend by 8–10% in 2027.

Investor takeaway

These are uncertain times. Central banks are raising interest rates to control cost-push inflation triggered by supply disruption. At such times, companies with lower leverage have better flexibility to keep operations profitable and recover when tensions ease.