If you’re looking to boost your portfolio’s performance over time, investing in high-quality growth stocks could be a smart choice. Growth stocks represent companies with strong fundamentals, robust growth potential, and the ability to consistently outperform the market. These businesses excel at expanding their revenues, have the potential to deliver profitable growth and have a strong market presence – factors that contribute to above-average returns for investors.
For investors looking to start small – say, with $500 – here are the smartest Canadian growth stocks to buy now. These Canadian companies are backed by strong business models and have impressive long-term growth prospects.
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Growth stock #1
Investors looking for top growth stocks could consider Brookfield Asset Management (TSX:BAM). This asset manager is poised to benefit from its exposure to industries poised for multi-decade growth. Its investments in data centres, AI-driven infrastructure, and renewable energy provide a solid base for stellar growth.
Further, Brookfield is also strengthening its foothold in the credit space. The company consolidated its credit operations under the newly formed Brookfield credit division, which now manages an impressive $245 billion in fee-bearing capital. Brookfield plans to grow this segment to $600 billion within the next five years, signalling significant potential for earnings growth.
Brookfield’s asset-light business model focuses on generating stable, fee-related income. This enables the company to generate steady earnings and distribute a significant portion of its profits to shareholders.
Brookfield plans to double its business size within five years. The company aims to reach $1 trillion in fee-bearing capital and expand its credit platform. Brookfield’s management expects this expansion to fuel 15% annual earnings and dividend growth.
In summary, Brookfield Asset Management is a high-growth company poised to deliver reliable dividends and capital appreciation.
Growth stock #2
Celestica (TSX:CLS) is another top Canadian growth stock to buy now. The company’s Connectivity & Cloud Solutions segment, which caters to next-generation storage, servers, and communications hardware, is thriving due to a surge in AI infrastructure investments, driving its overall financial performance and stock price higher.
Celestica stock has soared by about 236% year-to-date, and this momentum looks far from over. As spending on data centres accelerates, Celestica will likely see solid demand for its offerings, including its advanced 400G and 800G networking switches. Further, the increasing adoption of high-performance computing platforms and ongoing buildout of AI-powered data centres will likely fuel demand for server and storage solutions.
Beyond AI tailwinds, Celestica’s Aerospace and Defence division also offers substantial growth opportunities. Rising commercial air travel and heightened global defence spending provide additional avenues for long-term success.
Overall, Celestica capitalizes on multiple high-growth trends – from AI-driven infrastructure to defence and aerospace advancements. With strong demand trends, the company is poised to deliver stellar growth.
Growth stock #3
Investors seeking high-quality growth stocks could also consider Aritzia (TSX:ATZ) for its ability to deliver solid sales and earnings. This clothing retailer is poised to deliver double-digit sales and earnings growth in the coming years, which will drive its share price higher.
The company’s exclusive mix of fashion brands, wide product assortment, and tight control over the supply chain are positives. Moreover, with its stores located in prime retail spaces across Canada and the U.S., the company is well-positioned to continue generating steady growth and outperforming the broader markets.
Aritzia is expanding its footprint in the U.S. market. The company plans to open 8 to 10 new boutiques each year through fiscal 2027, aiming to increase its retail footprint by about 60%. These new locations will boost revenue and increase brand awareness, helping the company tap into a larger customer base.
Aritzia is also enhancing its omnichannel capabilities, investing in supply chain improvements, enhancing operational efficiency, and reducing warehousing costs. These measures are likely to boost its profitability and support its share price.
