As interest rates in Canada and the U.S. are expected to decline further, investors are shifting their focus toward growth stocks that could benefit from lower borrowing costs and improved consumer spending. While many companies could take advantage of this environment, some fundamentally strong growth stocks stand out as top contenders for major gains in 2025 and beyond.
In this article, I’ll highlight two high-potential Canadian growth stocks that could skyrocket further as market conditions improve.
Aritzia stock
If you want to invest in a growth stock with the potential to thrive even in a challenging market, Aritzia (TSX:ATZ) is worth a serious look. This Vancouver-based fashion brand has carved out a strong position in the high-end apparel space, offering high-quality clothing under its exclusive in-house labels.
Shares of Aritzia have climbed nearly 91% over the last year, making it one of the top-performing retail stocks in Canada. As a result, ATZ stock now trades at $70.70 per share, giving the company a market cap of $8.1 billion. While it doesn’t pay a dividend, Aritzia is reinvesting aggressively in expansion, and its financial results reflect this strategy.
In its latest quarter ended November 2024, the company posted impressive growth, with its revenue climbing 11.5% YoY (year over year) to $728.7 million, fueled by a 24% surge in U.S. sales. Similarly, Aritzia’s adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 48.7% from a year ago, while its net income soared 72% YoY.
Moreover, the company is opening new boutiques, expanding its e-commerce business, and growing its U.S. presence, all of which are setting it up for even bigger gains. With interest rates dropping and consumer spending rebounding, Aritzia stock could be just getting started. Its ability to scale while maintaining strong margins and brand loyalty makes it a top growth stock to watch for 2025 and beyond.
Metro stock
Now, let’s talk about another strong Canadian growth stock, Metro (TSX:MRU). If you’re looking for a business that could thrive with improving economic conditions, this food and pharmacy giant is worth considering. This Montreal-headquartered firm operates 995 grocery stores and 640 pharmacies across Canada under well-known banners.
After climbing by 32% over the last 12 months, MRU stock currently trades at $93.97 per share with a market cap of $20.7 billion. While it’s not a high-yield stock, it still pays a 1.6% annualized dividend, and its dividend was just raised by 10.4%, making it a nice perk for long-term investors.
In the quarter ended December 2024, Metro’s total sales jumped 2.9% YoY to $5.12 billion. Its same-store food sales grew 1.0% from a year ago, and adjusting for the holiday shift, they were up 2.4% YoY. The company’s pharmacy sales were even stronger last quarter, rising 5.1% YoY due partly to a 7.3% jump in prescription drugs.
It is important to note that Metro is investing heavily in supply chain upgrades, expanding its Moi Rewards program, and leveraging its massive retail footprint. With consumer spending expected to improve as interest rates decline, MRU stock could keep climbing in 2025 and beyond.
