Investors with long-term outlook could consider adding Canadian companies with secular tailwinds and significant growth prospects. Further, one should select stocks with solid fundamentals, sustainable earnings, and strong cash flows.
Against this background, here are the two brilliant growth stocks to buy now. Notably, these stocks are poised to deliver solid growth in the coming years and will likely benefit from a favourable operating environment.
Celestica stock
Celestica (TSX:CLS) is a brilliant growth stock to buy now and hold for the long term. The company is well-positioned to benefit from the growth of its artificial intelligence (AI) platform. Thanks to the AI-driven demand, Celestica’s top line is growing steadily while its margins have expanded. This led to a rally in its share price, which is up about 279% in one year and gained over 1,094% in three years.
Despite this notable increase in value, Celestica stock still has significant upside potential. The company’s revenue from the communications end market saw massive growth in 2024, and this trend will likely continue, driven by stronger demand for its hardware platform solutions (HPS) networking products. Celestica is witnessing high customer demand for its 400G networking switches. Meanwhile, the ramping of 800G switches augurs well for growth.
Celestica’s AI/ML compute business is another bright spot, with promising growth prospects supported by ongoing programs and anticipated new contracts set to ramp up through 2025 and into 2026. The introduction of DeepSeek’s R1 large language model (LLM) could further bolster Celestica’s growth as it will drive the demand for high-bandwidth, low-latency networking infrastructure.
The company’s industrial segment is stabilizing after a period of softer demand, with recovery anticipated as macro factors improve and customer inventory levels normalize. In the capital equipment sector, Celestica is benefiting from a favourable demand environment. At the same time, its aerospace and defence business is poised for growth driven by new program ramps and customer acquisitions.
With its diversified business model, exposure to high-growth markets, and the tailwinds from AI adoption, Celestica is well-positioned to deliver sustainable and profitable growth, supporting continued appreciation in its share price.
goeasy stock
goeasy (TSX:GSY) is another brilliant long-term growth stock. This leading non-prime consumer lender has consistently delivered solid double-digit revenue and earnings growth, which enabled it to enhance its shareholder value through higher dividend payments.
Over the past five years, goeasy’s top line grew at a compound annual growth rate (CAGR) of 20.2%, with its earnings per share (EPS) increasing at a CAGR of 28.7%. Further, it has delivered an average return on equity (ROE) of 26.4% over the past five years.
This momentum will likely continue, driven by its leadership in the large subprime lending market, higher loan originations, and expansion of its consumer loan portfolio. Further, its diversified funding sources and product expansion bode well for growth.
While the financial services company will likely deliver strong revenue, goeasy’s focus on high-quality loans, strong credit and payments performance, and improving operating efficiency could lead to solid growth in earnings, supporting higher payouts and driving higher share prices.
While goeasy is poised to deliver double-digit earnings growth, its stock trades at a forward price-to-earnings multiple of just 8.7, which is too cheap to ignore. Besides low valuation, goeasy stock offers a dividend yield of about 2.8% and has a high ROE.
