Are you looking for stocks that could supercharge your retirement savings? Done wisely, stock picking can unlock life-changing returns. Consider this: a $10,000 investment in Canadian tech giant Constellation Software just 10 years ago would be worth about $138,000 today. While past performance doesn’t guarantee future returns, it shows how the right long-term investments can transform your retirement nest egg.
Here are two promising TSX growth stocks that could help build your wealth for retirement: MDA Space (TSX:MDA) stock and Hemisphere Energy (TSXV:HME) stock. Let’s take a closer look at how the two Canadian growth stocks could help you build a richer retirement portfolio.
MDA Space stock: Reaching for the stars
MDA Space stock has been shooting for the stars — literally. This satellite and space technology company recently secured a massive $1.1 billion contract with Globalstar to build 50 new satellites, adding $750 million to its already impressive $4.6 billion order backlog.
The company’s growth story is compelling. Revenue jumped 38% in the third quarter of 2024, and management expects 30% annual growth. With over 3,000 skilled employees and strong cash flow generation, MDA is well-positioned to capitalize on the expanding space economy, which reached US$509 million in 2023 and is projected to triple by 2040.
What makes MDA particularly interesting is its role in the growing space sector. As more countries join NASA’s Artemis Accords (now 47 nations strong) and tech giants like Apple invest in satellite communications, MDA’s expertise becomes increasingly valuable. The company’s partnership with Microsoft further demonstrates the growing demand for space technology infrastructure.
MDA stock has already rewarded investors handsomely — a $10,000 investment since my first recommendation in July 2022 would be worth over $32,000 today. Trading at a reasonable forward price-to-earnings (P/E) multiple of 19.8, or below its five-year low historical P/E multiple of 25. MDA stock offers an attractive entry point for long-term investors looking to tap into the space technology sector.
Hemisphere Energy stock: A small penny stock offering big returns
Don’t let Hemisphere Energy’s penny stock status fool you. This Canadian oil company has delivered extraordinary returns, turning a $10,000 investment into $133,000 over just five years, including a 48% return in the last 12 months.
What makes Hemisphere stand out? Its financials tell a compelling story. The company boasts a 50.3% gross margin (beating the industry average of 44.3%) and a net margin of 30% (nearly double the industry average). Better yet, it pays a 5.4% annual dividend with a conservative 33.3% payout ratio, suggesting sustainable returns for shareholders.
Hemisphere specializes in developing conventional oil pools using enhanced recovery methods like waterflood and polymer flood technology in Alberta’s Atlee Buffalo and Jenner areas. This focused approach has paid off — in 2024, the company achieved 10% production growth while returning over $0.22 per share to shareholders through dividends and buybacks. Management guides for a 15% production growth in 2025 from capital expenditures fully funded by internally generated cash flow.
Trading at just 5.1 times forward earnings (well below the industry average of 12.2) and with a price-to-free-cash flow ratio of 4.9 compared to the industry’s 19.1, this energy stock looks attractively priced for value-conscious investors.
Foolish bottom line
Building wealth for retirement doesn’t necessarily require catching the next big tech breakthrough always. Sometimes, it’s about finding well-run companies in established industries that consistently deliver value to shareholders. While MDA stock offers exposure to the growing space economy, Hemisphere Energy provides a mix of growth and income through traditional energy.
Both companies demonstrate strong fundamentals, clear growth strategies, and the potential for significant returns. MDA’s position in the expanding space sector and Hemisphere’s efficient operations in conventional heavy oil extraction suggest promising long-term prospects for patient investors.
Remember, successful long-term investing isn’t just about picking the right stocks — it’s about having the conviction to hold them through market ups and downs. Joining an investing forum could help you stay the course and discover new ideas for a richer and happier retirement.
