Three no-brainer Canadian stocks to capitalize on opportunities in 2026
The year 2026 could bring more opportunities for artificial intelligence (AI) clouds as hyperscalers, small businesses and governments look for more AI capacity. The share price of HIVE digital technologies (TSXV:HIVE) could nearly double if the company converts its Tier-1 bitcoin mining data center (DC) to Tier-3 AI DCs. The latter costs three times as much, but is also just as rewarding with an operating margin of 80%. The increasing interest in the high-margin AI cloud business could transform HIVE from a volatile revenue generator to a stable cash flow compounder.
In addition to the AI supercycle, Hive is well-positioned for the future Bitcoin supercycle, whenever it occurs. Until then, consider buying and holding Hive stock while it trades below $4 per share. Consider selling the stock for $9 and passing on some of the profits to shareholders.
The compound growth stocks
While Hive provides exposure to Bitcoin and the AI supercycle, there are some slow compounders who are reinvesting free cash flow into acquiring companies that contribute to profits. Topicus.com (TSXV:TOI) is a software holding company that acquires licensed software used in mission-critical applications across industries such as education, healthcare, local and central government, retail, financial services, accounting, legal, real estate and more. Many of these industries are recession-proof and ensure that maintenance cash flow continues to flow in.
However, Topicus.com’s share price is growing as it continues to acquire new companies and build steady cash flows at attractive valuations. This time, Topicus.com made a major acquisition that increased its debt and write-offs. Furthermore, its parent company, Constellation Software, adapts to the management change. All of this has dragged shares lower, creating an opportunity to buy the dip. The stock price will rise as Topicus.com reduces debt and acquires more companies.
Descartes Systems
Descartes Systems (TSX:DSG) is another compounder that has no debt and $279 million in revenue cash reserves in the third quarter of 2025. The stock price has fallen 26% this year as the tariff war affected global trade. The company continued to grow its revenues and earnings from the acquisitions it made in 2024 and 2025.
2026 could be a year of recovery as companies adjust their models and supply chains to accommodate tariffs. Descartes solutions can efficiently facilitate this change. An increase in organic sales growth could lead to a 50% recovery rally, making it a buy-the-dip.
Two no-brainer Canadian stocks to manage risks for 2026
While economic growth and recovery can drive stock prices higher, what if there is a recession? With rate uncertainty and geopolitical tensions, you can’t rule out the possibility of a slowdown. You can manage downside risk by investing in the ultimate hedge: gold. Lundin Gold (TSX:LUG) can help you gain exposure to the gold price. It has one of the lowest all-in support costs (ASIC) and is more sensitive to the gold price. A $1,000 investment in Lundin Gold can act as a hedge and smooth dips in growth stocks.
Keep in mind that gold is cyclical and only performs well during times of economic uncertainty. If your investment grows by 50-80%, book a profit as the stock price will fall when the gold price corrects.
Cogeco communication
Another hedge against economic uncertainty is a utility’s dividend stock. Changes in telecom regulations have benefited small players such as Cogeco communication (TSX:CCA). It has increased its dividends over the past 15 years and has a comfortable dividend payout ratio of 30%. CCA has increased its dividend by 7% for 2026, fueled by cash flows from new connections.
The share price has fallen 32% from a cyclical high in 2022, when the telecoms regulator opened up major players’ fiber infrastructure to smaller players. Now is a great time to buy the stock and lock in a 6% return growing faster than inflation.
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