The top Canadian stocks you can buy for growth this year will naturally change as we progress through 2025 and different market dynamics and trends unfold. However, a strong case can be made for two stocks right now.
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A healthcare software company
Vitalhub (TSX:VHI) stock has spent most of its “life” on the market as a penny stock — i.e., trading below $5 per share. But it recently grew past this ceiling. The stock has been rising steadily for a little over a year, and in just the last 12 months, it has grown over 100%. If the stock can maintain this momentum for just one year, it will be one of the most promising growth stocks you can buy in Canada.
However, this kind of growth comes with consequences. The most significant and apparent one in this case is its overvaluation. The stock is currently trading at a dangerously high price-to-earnings ratio of over 172. Its financials, as per the last earnings report (Q3 2024), are encouraging but not too healthy. The company is in the green, though, with revenues climbing by about 25%.
The company is also getting on the radar of market experts, and it’s still trading below its target price. If the company manages to keep rising and post solid Q4 earnings, the chances of the current momentum carrying deeper into 2025 are pretty decent. Another thing that should inspire confidence among investors is that insiders own over 14% of the company.
An e-commerce giant
It wouldn’t be inaccurate to say that the golden age of Shopify (TSX:SHOP) stock’s growth is over. At its prime, it was one of the most compelling growth stocks in TSX history. But even now, when it’s struggling with market dynamics and against competitors, Shopify is a formidable holding. The stock has grown almost 80% in the last six months, and the bullish momentum might continue despite the stock’s overvaluation. There are multiple reasons to make this optimistic prediction, starting with the company’s financials.
In the last quarter, the stock posted a revenue gain of around 31%, but it has also predicted the first quarter of the new year to be relatively slower. This transparency might end up benefiting the company, though the current result is a modest slump. The company might also be vulnerable to new tariff hikes if they come into place. Another negative for the company is that most insiders have sold in the last six months, and there has been no major insider buying.
However, experts are still cautiously optimistic about the stock. It might not replicate the growth of the last six months, but something along similar lines (and scale) can be pretty impactful for your portfolio. The positive momentum of the tech sector as a whole and tech stocks in general also favour this speculation.
Foolish takeaway
The two growth stocks are worth considering — not just for 2025 but beyond. Even though both are currently overvalued and in the case of Shopify, the short-term prospects aren’t very promising, both stocks can prove to be powerful growth opportunities in the long term. An investment in them might even start paying off in 2025.
