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Invest for the Future: 2 Potential Big Winners in 2026 and Beyond

Alex Smith

Alex Smith

1 month ago

5 min read 👁 20 views
Invest for the Future: 2 Potential Big Winners in 2026 and Beyond

If you want to make investing feel less stressful and more intentional, thinking long term helps. Short-term market swings can be distracting, but real wealth is often built by holding strong businesses through multiple years of growth. That’s what Foolish Investing philosophy is all about – focusing on high-quality businesses with durable advantages, rather than short-term market noise. With 2026 just around the corner, now might be a good time to identify companies positioned to benefit from long-term structural trends.

In this article, I’ll talk about two top Canadian stocks for 2026 that could continue surging beyond the near term.

Aritzia stock

When looking at top Canadian stocks heading into 2026, Aritzia (TSX:ATZ) is hard to ignore as it continues to build momentum beyond its home market. This Vancouver-based firm operates in the specialty retail space, focusing on luxury apparel through a portfolio of in-house brands sold online and boutiques across Canada and the United States.

Over the past year, Aritzia shares have climbed more than 119%, backed by rising demand for its products and improving profitability. Investors have also responded positively to the company’s expanding presence in the United States, which continues to be a major growth driver. As a result, ATZ stock now trades around $118 per share, giving it a market cap of about $13.6 billion.

In the second quarter of its fiscal 2026 (three months ended in August 2025), the Canadian fashion retailer reported a solid 32% YoY (year-over-year) jump in its sales to $812 million. During the quarter, its comparable sales rose 21.6%, with double-digit growth across all channels and regions. Aritzia’s growth was mainly led by the United States, where its revenue surged by nearly 41% with the help of strong e-commerce traffic, new boutique openings, and solid performance from existing locations.

Similarly, the company’s profitability also improved last quarter, with its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increasing 122.5% YoY to $122.7 million. Better inventory management, lower markdowns, and improved cost leverage also helped it expand adjusted EBITDA margin to 15.1%.

To accelerate its growth further, Aritzia continues to invest in boutique expansion, digital growth, and brand awareness. The company expects its fiscal 2026 revenue to be between $3.30 billion and $3.35 billion, with margins expected to improve further. These initiatives and growth fundamentals clearly make Aritzia one of the top Canadian stocks for 2026 and beyond.

Descartes Systems stock

As we look at top Canadian stocks for 2026, Descartes Systems Group (TSX:DSG) could add balance to your portfolio through its strong recurring revenues. This Waterloo-based tech firm provides software solutions for logistics and supply chain management using a software-as-a-service model.

While Descartes shares are down about 25% over the last year, this pullback could be a golden opportunity for long-term investors as demand for logistics and compliance solutions remains strong. Currently, the stock trades near $123 per share with a market cap of roughly $10.6 billion.

In the third quarter of fiscal 2026 (three months ended in October), Descartes reported revenue of US$187.7 million, up 11% YoY. Its services revenue for the quarter, which makes up the majority of its total sales, increased 16% YoY as customers relied more heavily on trade compliance, customs, and supply chain visibility tools. Strong top line boosted the company’s income from operations by 24% YoY.

Interestingly, Descartes continues to expand its global logistics network through quality acquisitions and product improvements. With recurring strong revenue, solid cash generation, and increasing demand driven by global trade complexity, it remains well-positioned as one of the top Canadian stocks for 2026 and beyond.

The post Invest for the Future: 2 Potential Big Winners in 2026 and Beyond appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Aritzia. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy.

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