Top Canadian Stocks to Buy With $5,000 in 2026

Each new year brings more opportunities for Canadian investors to tap into and more risks for to avoid as they invest in the stock market. Before you splurge all your cash on luxuries you might or might not need, I would advise setting $5,000 aside to put to work in the stock market. I am talking about the kind of stocks that you can invest in right now and be glad you added to your self-directed portfolio when January 2027 ends.

Here are two of the top Canadian stocks to buy right now for substantial long-term gains, ripe for the picking at current levels.

Descartes Systems Group

Descartes Systems Group Inc. (TSX:DSG) is a $9.6 billion market capitalization Canadian company offering on-demand Software-as-a-Service (SaaS) solutions to clients worldwide. Its solutions focus on improving security, sustainability, and the productivity of logistics-intensive businesses.

The Waterloo-headquartered company has seen business improve significantly over the years, and its recent performance continues that momentum. Q3 of fiscal 2025 saw DSG stock report an 11% year-over-year increase in its reported revenue, which also broke its previous records.

The strong results show how the increased demand for logistics solutions and AI is creating powerful tailwinds for firms like Descartes Systems. As of this writing, DSG stock trades for $111.92 per share, and it is too cheap to ignore right now.

Lundin Gold

Lundin Gold Inc. (TSX:LUG) is a contrary pick if you compare it to DSG stock. The $29.2 billion market-cap company, headquartered in Vancouver, is a gold stock that owns and operates one of the highest-grade operating gold mines worldwide. As of this writing, Lundin Gold stock trades for $120.92 per share, up by a massive 254.9% from its 52-week low and hovering around new all-time highs of around $124 per share.

People are adamant that gold prices will fall. However, geopolitical tensions and the fears of conflicts springing up around the world are keeping people on their toes. As fears of recession sink in, a growing number of people are exiting equity markets and buying gold. If you want exposure to the commodity while retaining the liquidity of stock market investing, gold stocks like LUG can offer a good alternative.

If you consider gold’s performance during any crises over the years, it gets stronger. Higher gold prices mean gold-related businesses have better margins. In turn, stocks like Lundin Gold can become good investments to own to hedge against market downturns.

Foolish takeaway

Where Descartes Systems stock provides you exposure to the booming AI and broader tech space, Lundin Group stock offers a hedge against economic downturns through exposure to safe-haven assets without exiting the market. If you have $5,000 of investable cash and space left over in your Tax-Free Savings Account (TFSA), I would recommend that you consider allocating some of it to these two TSX stocks.

The post Top Canadian Stocks to Buy With $5,000 in 2026 appeared first on The Motley Fool Canada.

Should you invest $1,000 in The Descartes Systems Group Inc right now?

Before you buy stock in The Descartes Systems Group Inc, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and The Descartes Systems Group Inc wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

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* Returns as of January 15th, 2026

More reading

• 3 Growth Stocks That Could Turn $100,000 Into $1 Million by 2035, Starting Now
• Where to Invest Your TFSA Contribution for Maximum Growth 
• What is the TFSA Contribution Limit for 2026
• Beginner Investors: 6 Top Canadian Stocks for 2026
• 4 Canadian Stocks to Hold for the Next Decade

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy.