The 3 Stocks I'd Buy and Hold in 2026

2026-03-22 19:45:00 ET

2026 has already started out with no shortage of excitement in the stock market . The world seems to be changing so quickly. It can be a challenge to know how to invest and how to manage a portfolio when things are so volatile. If you are looking for some businesses that you can buy in the volatility, these three stocks look attractive in 2026.

Secure Waste: A defensive infrastructure player

The first stock is Secure Waste Infrastructure ( TSX:SES ). With over 80 locations, this company has become one of the largest industrial waste managers in Western Canada.

Where the world seems a little insecure, there is nothing more certain than waste. Humans and industries produce a lot of it. A major part of Secure’s business is disposing of and processing energy production waste.

With energy prices pushing higher due to the war in the Middle East, Canadian producers are set to push up production. That just means potentially higher volumes through Secure’s infrastructure.

While Secure is only projecting mid-single-digit earnings before interest, tax, depreciation, and amortization (EBITDA) growth in 2026, earnings per share could do better given its aggressive buyback strategy. In 2024, it bought back over 20% of its shares. In 2025, it bought back 8% of its shares. It has the capacity to buyback 10% of its shares in 2026.

Secure earns industry-leading margins, strong free cash flows, and high recurring revenues (around 80%). This stock pays a growing 2% dividend. It also happens to trade at a discount to other waste management peers, so there is still a valuation re-rate opportunity with this stock.

MDA Space: A top Canadian space stock

MDA Space ( TSX:MDA ) is another stock well-positioned for 2026. Its stock is already up 65% this year, but it has only really regained ground lost since 2025.

With a market cap of $5.5 billion, MDA Space is one of the only ways Canadian investors can get exposure to the growing space economy. MDA is a global leader specializing in space robotics technologies, low-orbit satellites, and geo-spatial intelligence.

MDA sits with $4 billion of backlog. It continues to add bookings, especially as defence and satellite network demand continues to increase.

MDA grew EBITDA by nearly 50% in 2025. Growth is expected to decelerate in 2026. However, MDA just completed an IPO in the United States. It now has ample cash to deploy into acquisitions or growth capex.

While MDA’s stock is not cheap today, it does trade at a material discount to other space-related stocks in the United States. If you believe it could also further re-rate, it could be a good time to build a position.

Descartes Systems: A bet on a stock rebound

Descartes Systems Group ( TSX:DSG ) has been punished by the recent AI selloff. Its stock is down 19% this year and 32% over the past 52 weeks.

Despite the selloff, Descartes has been delivering very good results. Revenues were up 12% to $729 million. Adjusted EBITDA increased 16% to $329 million, and EBITDA margins rose to 45%.

While the market is fearing AI disruption, Descartes sees opportunities. AI can not only improve its own internal processes, but it can also drive better products and efficiencies for its customers.

In fact, Descartes tends to do well during times of geopolitical disruption (like the present) because customers turn to its solutions to better navigate their freight in these scenarios. Likewise, Descartes can use its cash-rich balance sheet to acquire businesses during a time when software business valuations are hitting new lows.

You might have to be a little contrarian with this stock, but the bet could well pay off if you are patient.

The post The 3 Stocks I’d Buy and Hold in 2026 appeared first on The Motley Fool Canada .

Fool contributor Robin Brown has positions in Descartes Systems Group, MDA Space, and Secure Waste Infrastructure Corp. The Motley Fool recommends Descartes Systems Group, MDA Space, and Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy .

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