New money coming into these sectors has created a lucrative investment opportunity for long-term investments in the Tax Free Savings Account (TFSA).
The best stocks to invest $1,000 in a TFSA now
Canadian National Railway stock
The budget considerations include investments in rail lines in Alberta and rail infrastructure on the West Coast. One company that could benefit from this is Canadian National Railway (TSX:CNR).
Canadian National Railway has been struggling with revenue growth since last year as trading volumes fell. The country was hit hard by the tariff war as it shipped chemicals, petroleum, grain, forest products, and automotive goods to the United States.
The company embraced the trading challenges and lowered expectations for adjusted earnings per share (EPS) to mid-to-high single digits. Cost savings have been implemented to improve efficiency, and the results were reflected in the third quarter earnings figures. Sales increased 1% year on year, while net profit increased 5%.
Canadian National Railway has cut its 2026 capital expenditures to $2.8 billion from $3.35 billion in 2025 after completing capacity expansion in Western Canada and locomotive upgrades
Canada’s move to diversify its export partners may require rail infrastructure to its ports, creating long-term growth opportunities for Canadian National Railway. However, its capital-intensive nature makes stocks a better dividend investment that will benefit from structural changes in global trade. It has a dividend yield of 2.6% and the company can continue to grow its dividend in the low to mid-single digits.
Descartes Systems stock
A growth stock that will benefit from the structural change in world trade is Descartes Systems (TSX:DSG). The supply chain management and logistics offering helps companies transport goods and services efficiently. From route mapping to customs and compliance: companies can use the full range of services or a single offering. Whether it’s a single shipment or regular trade, companies can use Descartes.
Unlike other Software-as-a-Service (SaaS) models that push annual subscriptions and have less flexibility in choosing, the Descartes model is more flexible. Therefore, the company’s stock price is affected by trading volumes. The stock is at a 52-week low as the tariff war reaches its peak.
A shift in global trade will require robust execution, increasing demand for customs and compliance, transportation and inventory management, route planning and other offerings. There could be a share price recovery next year.
Takeaway for investors
Both stocks are trading near their 52-week lows as trading uncertainty impacts their near-term prospects. However, they have strong fundamentals to weather the slowdown and capitalize on high volumes during the trading recovery.
A $1,000 investment in the two stocks now can help you secure your position in the medium-term trading volume recovery rally. A recovery rally has more upside potential than normal growth.
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