Several Canadian stocks delivered notable gains in the past month, and for long-term investors, their recent performance could be a signal that underlying fundamentals remain solid. Rather than viewing last month’s upside as purely short-lived momentum, evaluating the business drivers behind these moves helps determine whether they still merit a place in a 2026 portfolio.

One standout performer has been Constellation Software (TSX: CSU). This company owns and operates a diversified portfolio of vertical market software businesses with recurring revenue models, meaning it benefits from predictable cash flow and strong earnings retention. Its disciplined acquisition strategy continues to add software firms that feed into its ecosystem, and recent quarterly results showed expanding margins and solid bookings growth — key factors that helped drive last month’s share price uptick. Long-term investors often prize Constellation’s ability to compound earnings through internal improvements and external acquisitions, which positions it well even if broader markets wobble.

Another name that gained traction is Canadian Pacific Kansas City (TSX: CP). The railroad operator has benefited from improving freight volumes and better pricing power in key segments, which supports both revenue stability and free cash flow generation. The stock’s recent rally was backed by optimism around economic activity and infrastructure spending. Given its role in North America’s supply chains, strong operating metrics could sustain the upward trend and make it attractive for investors focused on earnings quality and capital returns.

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In the energy sector, Enbridge (TSX: ENB) also posted gains, reflecting a more defensive yet stable business model rooted in midstream assets. Enbridge’s extensive pipeline network and long-term contracts support reliable dividend distributions, and the stock’s recent move higher appears linked to improved commodity export flows and optimism around energy infrastructure demand. For income-oriented investors, Enbridge’s yield and cash flow profile remain compelling as part of a diversified strategy.

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These recent monthly winners illustrate an important lesson: short-term share price moves are best evaluated through the lens of long-term business strength. Stocks that rise on sound earnings, durable revenue streams, and competitive positioning are more likely to sustain performance and reward patient holders in 2026 and beyond. By focusing on quality attributes — recurring revenue, free cash flow, and strategic market positioning — investors can differentiate between temporary momentum and enduring growth.