After Canadian investors enjoyed another growth-filled year in 2024, things got off to a rocky start in 2025. But over the past two weeks, the S&P/TSX Composite Index has rebounded impressively well and is now up about 2% on the year.
With the Canadian stock market up 20% over the past 12 months, there will be a pullback at some point. But if you’re investing for the long term, there’s no sense in patiently waiting for a dip on the sidelines. The TSX is full of top-quality stocks that you don’t need to think twice about when starting a position.
With that in mind, I’ve reviewed two top Canadian stocks that are both loaded with long-term growth potential. These two growth stocks have been outperforming the market’s returns for years, and I don’t see that changing anytime soon.
Shopify
It wasn’t all that long ago that Shopify (TSX:SHOP) was the largest company on the TSX. Back in late 2021, when the tech stock was last trading at all-time highs, there weren’t many hotter stocks on the TSX than Shopify.
After a slight downfall in early 2020, similar to how many others fared, Shopify went on a massive run for the following year and a half. Unfortunately, shareholders shortly after had to pay the price for the sudden surge.
Slowly but surely, Shopify has been clawing its way back to all-time highs. The stock is up a market-crushing 40% over the past year and is now down less than 30% from all-time highs. But even with the discount, shares are still up a whopping 150% over the past five years.
I wouldn’t bank on Shopify becoming a low-volatile investment in the near future. But as growth investors know, volatility is part of the game.
Don’t miss your chance to load up on Shopify at a discount. At this rate, it won’t be trading below all-time highs for much longer.
Constellation Software
If Shopify is too volatile for your liking, Constellation Software (TSX:CSU) may be a better fit. The tech stock isn’t exactly cheap, at least from a stock price perspective, but you’re paying for a top-quality, market-beating company.
Shares are currently priced at more than $4,500 a share. That doesn’t necessarily mean it’s an expensive stock from a valuation perspective, but there’s no getting around the fact that you’ll need to pay up to be a shareholder.
The good news is that Constellation Software has a proven track record and doesn’t seem to be slowing down all that much — at least certainly not to the point of trailing the market’s returns.
Shares are up 25% over the past 12 months and a market-crushing 230% over the past five years.
Constellation Software is not a cheap stock but it’s well worth the price of admission.
Foolish bottom line
If you’re looking for market-beating returns, it will be hard to avoid volatility. It may be easier said than done, but the key is time and patience. Over the long term, the market-beating returns will make the volatility all worth it.
