What if you could look into the future and see which stocks turned out to be massive long-term winners? While no one has a crystal ball to see the future, history shows that high-quality businesses with strong growth potential tend to deliver outstanding returns over the long term.
Some stocks today have all the right ingredients to become market leaders in the next decade, making them smart buys right now. In this article, I’ll highlight two TSX growth stocks that could reward patient investors handsomely over the next 10 years.
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MDA Space stock
MDA Space (TSX: MDA) stock has been on an exciting ride lately, and if you’re looking for a long-term winner, this one might just check all the boxes. If you don’t know it already, this Toronto-headquartered firm is a top player in the space industry, specializing in robotics, satellite systems, and geo-intelligence. The firm has been involved in space exploration and infrastructure for over five decades, working on large projects like Canadarm3 and Earth observation satellites. Its stock currently trades at $24.57 per share, giving it a market cap of $3 billion.
Investors who got in early have already seen strong returns, with MDA stock up 78% over the past year and a staggering 174% gain over three years.
MDA’s business is booming, and you can clearly see it in its latest financials. In the quarter ended September 2024, the company’s total revenue soared by 38% YoY (year over year) to $282.4 million with the help of strong performance in its satellite systems segment. Meanwhile, its adjusted quarterly net profit jumped 60% YoY.
With a backlog of $4.6 billion, MDA Space has plenty of future revenue locked in, which is a great sign for long-term investors. But what really makes it a stock you’ll be glad to own for a decade is its relentless push toward innovation and major contracts. Just recently, MDA signed a $1.1 billion deal with Globalstar to build more than 50 next-generation satellites for its low Earth orbit constellation. Given these strong fundamentals, you can expect MDA stock to continue soaring.
BlackBerry stock
Another TSX stock that could be an excellent long-term buy is BlackBerry (TSX: BB). This Waterloo-based tech firm mainly focuses on providing digital and IoT (Internet of Things) software solutions to governments, enterprises, and automakers across the globe.
After rocketing by 125% over the last six months, BB stock currently trades at $7.47 per share with a market cap of $4.4 billion. In its latest quarter ended November, the company’s revenue of US$162 million exceeded Street analysts’ expectations, with its IoT segment growing 13% sequentially and cybersecurity revenue up 7%. More importantly, BlackBerry hit positive cash flow ahead of schedule, showcasing a major turnaround milestone.
Moreover, BlackBerry is doubling down on high-growth areas like intelligent automotive software and cybersecurity services, both of which are seeing increasing global demand. If you’re thinking 10 years down the road, this stock could be a big winner.
