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2 days ago
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2 Top Canadian Stocks to Buy Right Now With $1,000
Written by Aditya Raghunath at The Motley Fool Canada Investing in small-cap stocks trading at a reasonable valuation and positioned for steady growth is a strategy that will help you deliver outsized gains over time. In this article, I have identified two such Canadian stocks you could consider buying with just $1,000. Let's see why. Is this Canadian stock a good buy right now? Valued at a market cap of $306 million, Volatus Aerospace (TSXV:FLT) provides integrated drone solutions across Canada, the U.S., the U.K., and Norway. It offers UAV (unmanned aerial vehicle) services, including pipeline monitoring, surveillance-as-a-service, wildfire management, geomatics (lidar surveys, photogrammetry), inspection services, and autonomous cargo delivery. The company provides drone equipment sales, pilot training, and specialized software platforms for data analysis. Volatus serves oil & gas, utilities, construction, defence, mining, agriculture, and public safety industries with comprehensive aerial intelligence and logistics solutions. Volatus Aerospace delivered mixed first-quarter (Q1) 2025 results, as revenue declined to $5.7 million from $6.6 million in the prior year, due to seasonal weather impacts and geopolitical uncertainties that delayed customer purchasing decisions. Despite the revenue decline, its operating losses narrowed by 24% to $3.6 million while normalized EBITDA (earnings before interest, tax, depreciation, and amortization) improved 30% year over year. In Q1, Volatus secured the Beyond Visual Line of Sight (BVLOS) approvals across Canada for daytime and nighttime operations. These approvals extend to complex airspace environments, including operations near vertical structures and in Canada's remote northern regions. The regulatory milestone positions Volatus to commercialize its Operations Control Center (OCC) as a scalable service offering. Volatus is pivoting its business model from capital-intensive operations to a customer-owned, company-operated approach. Under this structure, customers purchase drone equipment while Volatus provides managed services and recurring maintenance contracts, reducing the company's capital requirements while generating steady revenue streams. Its drone-in-a-box solutions, combined with OCC capabilities, enable fully automated remote operations with minimal ground personnel. These systems can operate across ranges of 20-60 kilometres from centralized hubs, supporting applications including infrastructure inspection, mining operations, and border surveillance. Volatus maintains its commitment to achieving EBITDA breakeven by mid-2025, supported by improving operational efficiencies and an expanding pipeline of opportunities across critical infrastructure, mining, and public safety sectors. Analysts tracking the Canadian stock expect revenue to rise from $27.15 million in 2024 to $101 million in 2028. Comparatively, it is forecast to report a free cash flow of $12.4 million in 2027, compared to an outflow of $13.8 million in 2024. FLT stock has more than tripled year to date but also trades 40% below all-time highs, allowing you to buy the dip. Is this Canadian tech stock undervalued? Another small-cap tech stock that operates in a similar vertical is Draganfly (CNSX:DPRO), which develops and manufactures unmanned aircraft and remote data collection systems in the U.S. and Canada. It offers quadcopters, fixed-wing aircraft, ground robots, and specialized software for tracking and data analysis. The company also operates health/telehealth platforms for remote biometric detection and provides sanitary spraying services, serving public safety, agriculture, industrial inspection, and mapping markets. In Q1 of 2025, Draganfly reported revenue of $1.55 million, an increase of 16% year over year, driven by expanding partnerships and strategic positioning in the defence sector. It secured several notable partnerships, including an exclusive agreement with SafeLane, the world's largest demining company, to provide aerial survey services for unexploded ordnance removal operations. Draganfly strengthened its defence credentials by adding Chris Miller, former U.S. Acting Secretary of Defense, as a spokesperson and advisor, providing crucial access to military procurement channels. Draganfly also opened a new Tampa facility with full testing capabilities, including live ordnance testing, positioned to serve special operations customers and manufacturing needs. Management expects this to be a breakout year, with CEO Cameron Chell indicating the company needs approximately $35-40 million in revenue to achieve profitability. Analysts tracking the tech stock forecast sales to rise from $6.56 million in 2024 to $21.5 million in 2026. The sales pipeline exceeds $100 million, with multiple large defence and public safety contracts under consideration that could accelerate growth trajectories. The post 2 Top Canadian Stocks to Buy Right Now With $1,000 appeared first on The Motley Fool Canada. Should you invest $1,000 in Draganfly Inc. right now? Before you buy stock in Draganfly Inc., consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Draganfly Inc. wasn't one of them. The Top 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 $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 days ago
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AI Stock Descartes Systems Just Dropped 13%: Time to Buy the Dip?
Written by Robin Brown at The Motley Fool Canada Descartes Systems Group (TSX:DSG) has been a top technology stock on the TSX for years. Its stock is up 92% in the past five years, 618% in the past 10 years, and 2,480% in the past 15 years. Descartes: A great business and a great long-term stock Descartes is leading global provider of transportation and logistics software solutions. It operates a logistics network that connects thousands of businesses across the global supply chain. This network is a fundamental asset that accommodates global trade. Descartes has intelligently complemented this asset by acquiring a wide mix of complementary SaaS (software-as-a-service) solutions. These help make trade more compliant, efficient, and profitable for all providers. In many of its services, Descartes uses machine learning and artificial intelligence to help customers keep track of shipments, route couriers, maintain compliance documents, and manage inventory. Often, its solutions are replacing cumbersome paper processes. Once its solutions are adopted, there is no going back to the old processes. A high-quality business Descartes is to the global supply chain like Visa is to global commerce. It provides the integral network that accommodates trade around the world. As a result, it has a high customer retention rate and high (93%) recurring service revenue. Descartes has grown revenues by a 14% compounded annual growth rate (CAGR) over the past decade. Its earnings before interest, tax, depreciation, and amortization (EBITDA) have grown by an even faster 17.5% CAGR in that time. Descartes is a very pricey stock given near-term challenges Such strong performance has come with a downside for Descartes. Its valuation has risen considerably over the past decade. It trades with an enterprise value (EV)-to-EBITDA ratio of 32 times and a price-to-earnings (P/E) ratio of 62 times. This is part of the reason for Descartes' uncharacteristic stumble. Its stock is down 13% for the year and 15% in the past six months. So, what's going on? Descartes is caught in the crossfire of Trump's global trade war. Companies have slowed decision-making around trade, cross-border shipments, and supply chains. They are waiting for stability in the market. That impacts demand for Descartes services. It could impact its growth outlook for 2025. The company proactively reduced its workforce by 7% given the environment. This concerned the market to an extent and the stock took a hit after it released first quarter earnings. Buy today or wait for another opportunity? So the question is whether Descartes Systems looks attractive today? Certainly, its valuation has come down. It was trading with an EV/EBITDA ratio of 40 at the start of the year. Today, it is down 8 to 32. Yet, it is still an extremely pricey stock. It trades just over its long-term valuation mean of 31. To justify its current valuation, Descartes needs to maintain its 12–15% annual growth rate for many years to come. There isn't a huge margin for safety in the stock price. If you believe this company can continue to hit its growth targets, it is probably not a terrible time to add to the stock. However, I would look for a greater pullback to make a significant addition. It's a great company, just not a great price to pay for it right now. The post AI Stock Descartes Systems Just Dropped 13%: Time to Buy the Dip? appeared first on The Motley Fool Canada. Should you invest $1,000 in Visa right now? Before you buy stock in Visa, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Visa wasn't one of them. The Top 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 $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution Fool contributor Robin Brown has positions in Descartes Systems Group and Visa. The Motley Fool recommends Descartes Systems Group and Visa. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 days ago
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Kits Eyecare Stock Has Doubled This Year: My Prediction for What Comes Next…
Written by Aditya Raghunath at The Motley Fool Canada Valued at a market cap of $533 million, Kits Eyecare (TSX:KITS) operates a digital eyecare platform in the United States and Canada. It manufactures progressive and contact lenses, eyeglasses, and frames under the KITS brand, as well as distributes eyewear products of various brands. Kits operates a network of optical e-commerce websites, including and In the last three years, the small-cap TSX stock has returned 575% to shareholders, crushing broader market returns by a wide margin. Let's see if Kits Eyecare stock is still a good buy right now. How did Kits Eyecare stock perform in Q2 2025? In Q2 2025, Kits Eyecare reported record sales of $49.6 million, an increase of 31% year over year above its midpoint guidance of $49 million. The Canada-based digital eyecare provider also achieved its 11th consecutive quarter of positive adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) at $2.6 million, indicating a margin of 5.2%. The standout performance came from the company's glasses segment, which generated $7.2 million in revenue, up 44% year-over-year. Kits delivered over 112,000 pairs of glasses during the quarter, a 53% increase from the prior year. Premium lens upgrades accounted for 46% of glasses revenue and grew 58% annually, which suggests that customers are gravitating toward higher-value products. Growth markets Canada emerged as a key growth driver, with revenue in the region growing 44% year-over-year. This strength was attributed to new and returning customers across glasses and contact lenses, reflecting the success of the company's 'Own This Town' localized marketing strategy. The initiative has generated increased awareness in targeted markets, contributing to improved customer acquisition metrics. Kits welcomed over 111,000 new customers in Q2, a record for the company and a 55% increase from last year. These new customers contributed over 39% of revenue in the June quarter. The company's two-year active customer base now exceeds 991,000 people, growing 13% annually, with repeat customers representing over 60% of Q2 revenue. Gross margins expanded to 36.3%, up 350 basis points year-over-year, despite absorbing the impact of record new customer growth. The margin improvement was driven by a higher mix of glasses sales and premium lens upgrades, in addition to tighter promotional controls. Its vertically integrated manufacturing model continues to provide competitive advantages in quality and cost efficiency. Outlook Kits projects Q3 revenue between $52 million and $54 million with adjusted EBITDA margins of 5-7%. It expects marketing expenses to moderate slightly while maintaining gross margin improvements. Management highlighted the launch of OpticianAI, a technology platform designed to enhance frame selection and customization, as customers report superior online experiences compared to traditional retail channels. The results underscore Kits' strategy of building lifetime customer relationships through superior digital experiences while maintaining operational discipline and margin expansion. Is the TSX stock undervalued? Analysts tracking Kits Eyecare forecast revenue to grow from $159 million in 2024 to $294 million in 2029. In this period, adjusted earnings are estimated to grow from $0.04 per share to $0.81 per share. Today, KITS stock trades at a forward price-to-earnings multiple of 68.4 times, which might seem lofty. However, this steep multiple is supported by robust growth estimates. If KITS trades at 40 times forward earnings, the TSX stock could roughly double over the next four years. The post Kits Eyecare Stock Has Doubled This Year: My Prediction for What Comes Next… appeared first on The Motley Fool Canada. Should you invest $1,000 in Kits Eyecare right now? Before you buy stock in Kits Eyecare, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Kits Eyecare wasn't one of them. The Top 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 $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kits Eyecare. The Motley Fool has a disclosure policy. 2025
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30-07-2025
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Investors: How to Benefit From Surging Gold Prices
Written by Demetris Afxentiou at The Motley Fool Canada When market volatility hits, seasoned investors often turn towards the perceived safety of precious metals. That presents an opportunity for those investors to benefit from surging gold prices. Here's a look at some of the ways you can benefit from those surging gold prices without being exposed to significant risk. Opportunities are growing Economic uncertainty leads to surging gold prices. It's no coincidence, then, that gold prices are up an astonishing 26% year-to-date to over US$3,330 per ounce. This presents an opportunity for investors to consider because of those surging gold prices. Two options for investors to consider right now are Wheaton Precious Metals (TSX:WPM) and Barrick Mining Corporation (TSX:ABX). Both of these stocks can offer a different take on how to benefit from the current gold rally we're seeing unfold. Meet Barrick Barrick is a traditional miner and one of the largest gold miners on the planet. The company has a well-diversified portfolio of 18 active mines on four continents. Barrick also boasts a number of projects currently under exploration and development. Traditional miners like Barrick earn profits by selling off the precious metals produced from their mines. The cost of mining is largely fixed, whereas the price at which those extracted metals sell is based on the market. In other words, as gold prices rise, Barrick becomes more profitable. That's a key reason why Barrick is a great option for investors looking to benefit from surging gold prices. By extension, it's also the reason why Barrick's stock price has soared a whopping 32% this year. In fact, in the most recent quarter, Barrick posted an incredible 59% increase in net earnings when compared to the prior year. The company also reported free cash flow of $375 million in the quarter. That stellar performance helped Barrick trim 5% of its net debt in the quarter. Prospective investors looking at Barrick should also note that the company offers a quarterly dividend. As of the time of writing, the yield on that dividend works out to 1.9%. Meet Wheaton While Barrick provides the direct operational upside, Wheaton provides an alternative, lower-risk option for investors. Part of the reason for that is because Wheaton is a precious metals streamer. Streamers like Wheaton do not own or operate precious metal mines. Instead, they provide upfront capital to traditional miners, who will then set up the mine and begin operations. In exchange for that upfront capital, streamers are permitted to purchase an amount of the metals that are produced from the mine at discounted rates. Let's clarify that further – streamers purchase those metals at extremely discounted rates. As mentioned above, the spot price for gold currently sits just over US$3,3300 per ounce. For silver, the market price is US$38 per ounce. The price that streamers like Wheaton pay for an ounce of gold sits near US$450 per ounce. Turning to silver, that number is near US$4.00 per ounce. In other words, Wheaton benefits from the market rally like Barrick, but has the bonus of considerably lower risk. And like Barrick, Wheaton also pays out a quarterly dividend, although its dividend currently sits at a yield of 0.7%. That being said, prospective investors should note two key points about Wheaton's dividend. First, the dividend is based on the average operating cash flow from the prior four quarters. This means that investors can expect a bump if the current surge continues. Second, the dividend is well supported, with a payout ratio of just 33% of cash flow. Again, this leaves room for growth. Will you benefit from surging gold prices? No stock is without risk. Both Wheaton and Barrick offer investors a unique opportunity to buy into the surging precious metals market. In my opinion, a small position in one or both of these stocks would do well in any larger, well-diversified portfolio. The post Investors: How to Benefit From Surging Gold Prices appeared first on The Motley Fool Canada. Should you invest $1,000 in Barrick Gold right now? Before you buy stock in Barrick Gold, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Barrick Gold wasn't one of them. The Top 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 $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
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26-07-2025
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TFSA Passive Income: How Retirees Can Get Decent Returns While Reducing Capital Risk
Written by Andrew Walker at The Motley Fool Canada Canadian seniors are using their self-directed Tax-Free Savings Account (TFSA) to hold investments that can generate steady tax-free income that won't put their Old Age Security (OAS) at risk of a clawback. Protecting capital is important as investors get older, but that often collides with a desire for higher returns. One strategy to consider involves holding a combination of Guaranteed Investment Certificates (GICs) and top dividend-growth stocks. GIC pros and cons GICs offered by Canada Deposit Insurance Corporation (CDIC) members provide safety for the capital invested in the event the issuer goes bankrupt, as long as the amount is within the $100,000 threshold. There are reports that the government is considering expanding the limit to $150,000. GIC rates offered on non-cashable certificates are higher than those on ones that provide more flexibility. In late 2023, investors were briefly able to get GICs with rates of 6%. Falling interest rates and declining bond yields led to declines in the rates being offered on GICs through 2024. The recent spike in government bond yields, however, has also pushed up GIC rates offered by banks and alternative lenders. At the time of writing, investors can get non-cashable GICs in a range of 3.5% to 3.9% depending on the provider and the term. This is well above the June rate of inflation that came in at 1.9%, so the GIC is a good risk-free option to consider right now. The downside of the non-cashable GIC is that the cash is locked up for the term. In addition, the rate earned on the money is fixed. In addition, rates available in the market when the GIC matures could be much lower. Dividend stocks pros and cons Stock prices can fall below the purchase price, and dividends can be cut if a company runs into a cash flow problem. This is the risk investors take on for the opportunity to get better yields and a shot at capital gains. On the dividend side, investors looking for income should consider stocks that have increased the distribution steadily for a long time. Enbridge (TSX:ENB) is a good example of a stock with a great track record of dividend growth. The pipeline giant increased the dividend in each of the past 30 years. Enbridge grows through strategic acquisitions and development projects. The company spent US$14 billion in 2024 to buy three American natural gas utilities. Enbridge is also working on a $28 billion capital program to drive additional earnings expansion. Increases in distributable cash flow are expected to be 3% to 5% in the coming years. This should support ongoing dividend growth. Investors can currently get a 6.1% dividend yield from the stock. Stocks can be sold at any time to access the funds in the case of an emergency need for cash. In addition, each increase in the dividend raises the yield on the initial investment. The bottom line The right combination of GICs and dividend stocks depends on a person's appetite for risk, desired average yield, and the need for quick access to the funds. In the current environment, investors can quite easily put together a diversified portfolio of GICs and dividend-growth stocks to deliver an average yield of 4% to 5%. This is a decent return while reducing capital risk. The post TFSA Passive Income: How Retirees Can Get Decent Returns While Reducing Capital Risk appeared first on The Motley Fool Canada. Should you invest $1,000 in Enbridge right now? Before you buy stock in Enbridge, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Enbridge wasn't one of them. The Top 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 $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
