Investing in high-growth companies with strong fundamentals is one of the most effective ways to build long-term wealth. While market conditions may fluctuate, Canadian stocks with solid business models and expanding market opportunities tend to outperform the broader market over time.
In this article, I’ll highlight three Canadian growth stocks that could be great picks for Foolish Investors looking to build long-term wealth.
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MDA stock
The first high-growth stock you can consider on the Toronto Stock Exchange right now is MDA Space (TSX:MDA). This Toronto-headquartered firm is gradually emerging as a global leader in robotics, satellite systems, and geo-intelligence by playing an important role in space exploration and infrastructure. MDA stock has had an impressive run, surging 94% over the last 12 months. Currently, it trades at $24.33 per share with a market cap of $3 billion.
The company’s revenue jumped 38% YoY (year over year) in the third quarter of 2024 to $282.4 million. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) during the quarter also climbed by 30% from a year ago to $55.5 million. More importantly, MDA’s backlog soared 49% YoY to $4.6 billion — significantly improving visibility into its future revenue and earnings.
Interestingly, MDA Space is expanding aggressively as it recently secured a $1.1 billion contract with Globalstar to build a next-gen low Earth orbit satellite constellation. With strong execution and increasing demand for its satellite tech, MDA Space could be a long-term winner in the making.
Shopify stock
And speaking of long-term winners, let’s not forget about Shopify (TSX:SHOP). This Ottawa-based e-commerce platform giant is continuing to revolutionize online retail globally. After jumping by 45% over the last year, SHOP stock currently trades at $176.57 per share with a massive market cap of $228.1 billion.
In the fourth quarter of 2024, Shopify’s revenue surged 31% YoY to US$2.81 billion, marking the seventh straight quarter of its adjusted top-line growth exceeding 25%. Its quarterly gross merchandise volume also surged by 24% YoY to hit US$94.46 billion, reflecting strong merchant activity. In addition, its profitability also improved, with free cash flow rising to US$611 million, boosting its adjusted EBITDA margin to 21% last quarter from 18.8% a year ago.
Moreover, Shopify’s growing focus on artificial intelligence (AI)-driven commerce, expanding international reach, and scaling business-to-business solutions continue to make it an excellent growth stock to hold for the long term.
Metro stock
And rounding out our list is Metro (TSX: MRU), a dominant player in Canada’s food and pharmacy retail sector. With nearly 1,000 food stores and over 600 pharmacies under its various banners, Metro has built a strong presence across the country.
In the last year, Metro stock has gained 33% to currently trade at $91.82 per share with a market cap of $20.3 billion and offers a 1.6% dividend yield.
In the quarter ended in December, the Canadian retailer delivered a 2.9% sales growth to $5.1 billion. Despite weak consumer spending, its quarterly net profit surged 13.6% to $259.5 million.
With Metro expanding its retail network, investing in its supply chain, and growing its online grocery segment, its long-term growth outlook remains strong, making it a solid growth stock pick for buy-and-hold investors.
