If you’re looking to invest $7,000 in the Canadian stock market, you want to put that money to work in Canadian stocks with strong fundamentals, solid growth potential, and a history of delivering value to shareholders. Three standout stocks that fit the bill are Constellation Software (TSX:CSU), Aritzia (TSX:ATZ), and Dollarama (TSX:DOL). These companies operate in different industries, but all share a common trait: each has been growing steadily and is positioned for future success.
Constellation
Constellation Software has built its reputation as one of the most successful Canadian tech companies by acquiring and scaling vertical market software businesses. Rather than focusing on rapid-fire product launches or flashy innovations, CSU takes a long-term approach: it buys smaller, niche software companies with stable cash flows. Then, it integrates them into its ecosystem and allows them to flourish under its umbrella.
The company’s third-quarter earnings for 2024 reflect its continued growth. CSU reported $2.54 billion in revenue, a 20% increase year over year (YoY). Over the first nine months of 2024, revenue has climbed 21% to $7.36 billion. While net income fell compared to last year, reaching $164 million or $7.74 per diluted share from $227 million, or $10.70 per share, Constellation remains a powerhouse in the software sector.
Over the past five years, CSU has delivered massive gains to its investors, with its stock price climbing from around $1,000 in 2019 to nearly $5,000 today. The Canadian stock’s strategy of reinvesting profits into new acquisitions ensures that its pipeline of revenue-generating businesses continues to grow. With a forward price-to-earnings (P/E) ratio of 35.59, it’s not a cheap stock, but quality rarely comes at a discount.
Aritizia
Aritzia has quickly become a dominant player in Canadian and U.S. fashion retail. Known for its high-quality clothing, the Canadian stock has gained a cult-like following among millennials and Gen Z shoppers. While many traditional retail brands have struggled, Aritzia has thrived by focusing on premium but accessible fashion and expanding its footprint beyond Canada.
Its most recent earnings report for the third quarter (Q3) of fiscal 2025 showed just how strong the business is. Revenue surged 11.5% to $728.7 million, with U.S. net revenue growing an impressive 23.6% to $403.7 million, accounting for over 55% of total sales. More importantly, net income jumped 71.9% to $74.1 million.
Aritzia’s expansion strategy is aggressive but well-executed. The Canadian stock is on track to open eight to 10 new U.S. stores annually, with a target of surpassing 150 stores in the coming years. Its strong e-commerce platform is also a key driver of growth, helping it attract international shoppers. Over the past year, its stock has nearly doubled, climbing from around $35 to over $70. Despite this rally, analysts believe Aritzia still has plenty of room to grow, particularly if its U.S. expansion continues at this pace.
Dollarama
If you’re looking for a defensive stock that thrives in any economic environment, Dollarama is a great pick. As the largest dollar store chain in Canada, it continues to see strong demand from budget-conscious shoppers, especially as inflation puts pressure on household budgets.
Dollarama’s third-quarter results reflect its steady growth. The Canadian stock reported $1.56 billion in revenue, up 5.7% from the previous year. Earnings per share also rose 6.5% to $0.98. Despite economic uncertainty, Dollarama reaffirmed its annual sales forecast, highlighting the resilience of its business.
What makes Dollarama particularly attractive is its expansion plan. The Canadian stock is increasing its store count target to 2,200 by 2034, up from 2,000 by 2031. It is also investing in a new logistics hub in Western Canada, which will help improve efficiency as it scales. Over the past five years, Dollarama’s stock price has more than doubled, making it one of the best-performing Canadian retailers.
Bottom line
The Canadian stock market offers plenty of opportunities, but investing in high-quality companies with strong fundamentals is key to long-term success. CSU, ATZ, and DOL each have proven business models, are growing their revenues, and are positioned for continued expansion. Whether you’re looking for a defensive retailer, a high-growth fashion stock, or a tech powerhouse, these three Canadian stocks make a strong case for being some of the best Canadian investments right now.
