By Robin Brown at The Motley Fool Canada
With the TSX Index trading just south of all-time highs (and up 9% for the year), plenty of Canadian stocks have enjoyed a surge in 2026. Despite trade threats and geopolitical tensions, the Canadian stock market has been incredibly resilient.
Yet, there are still some bargains to be found. Here are two Canadian stocks that look supercharged to surge in 2026.
A top Canadian tech stock set for a rebound
Descartes Systems Group (TSX:DSG) has been a long-term winner for investors. Its stock is up 316% in the past 10 years. However, it is down 12% in 2026. Like most software stocks, it has not had a fun ride due to concerns about artificial intelligence (AI) disruption.
No doubt, AI is a threat to monitor. However, for Descartes, it is also an opportunity. Descartes operates a leading global logistics network. That network collects tonnes of crucial data that its customers can use to make better decisions around their freight and supply chains.
Descartes is starting to unlock that data with AI applications that help clients facilitate faster, more efficient decision-making.
Descartes actually sees growth opportunities from new AI technologies. Certainly, recent results don’t depict any disruptions or threats. Last quarter, revenues were up 15% (including 9% organic growth). Likewise, earnings per share surged 34% as margins continued to improve across its business.
This Canadian stock is trading at its lowest valuation range in 10 years. It is not the cheapest software stock you will find. However, it deserves a premium when you consider its cash-rich balance sheet, high recurring revenues, and track record of strong capital allocation.
At some point the software winners will be sifted out from the losers. When the market runs out of steam chasing unprofitable, moonshot IPOs, it may come back and give Descartes its day in the sun again.
A top retail stock
Groupe Dynamite (TSX:GRGD) had an incredible 2025. This Canadian stock rose over 300% after it delivered exceptional results throughout the year. However, 2026 has not been so good. Its stock is down 16% for the year.
Groupe Dynamite operates 173 Dynamite and Garage-branded stores across North America. It offers “luxury-inspired” merchandise that caters to women somewhere between 14 years of age and 45.
Over the past five years, revenues have risen by a 20% compounded annual growth rate (CAGR) and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) have risen by a 44% CAGR. EBITDA margins are an astounding 36%, which is like software-level margins. The company generates very strong free cash flows and has a good balance sheet (a modest 0.8 times net debt-to-EBITDA).
It just made its first foray into Europe with the launch of a U.K. flagship store. The response has been incredibly strong, and the company expects it to be one of its best openings yet.
This Canadian stock is set to report results on June 16. It is likely to deliver very good numbers as it continues to gain traction in the U.K. Groupe Dynamite trades at a substantial discount to other top retailers like Aritzia.
If it can continue to perform, shareholders will get a boost from its valuation improving and earnings rising. The stock looks like an attractive buy for a supercharged second half of 2026.
The post 2 Canadian Stocks Supercharged to Surge in 2026 appeared first on The Motley Fool Canada.
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Fool contributor Robin Brown has positions in Aritzia and Descartes Systems Group. The Motley Fool has positions in and recommends Aritzia and Groupe Dynamite. The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy.
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