If you look back at some of the best-performing stocks over the last 10 to 20 years, such as Shopify, Constellation Software, and Enbridge, you’ll notice a common thread that most started off quietly before going on to deliver life-changing returns. Turning $10,000 into $100,000 isn’t easy, but it’s far from impossible, especially if you catch the right companies early and let time do the heavy lifting by following the Foolish Investing Philosophy.
In this article, I’ll highlight two Canadian growth stocks that have the potential to deliver 10 times returns for long-term investors.
Source: Getty Images
Dollarama stock
One stock with a solid track record of posting strong returns is Dollarama (TSX:DOL), as it has delivered attractive double-digit returns in 14 out of the last 15 years.
This Montreal-based value retailer runs over 1,600 stores across Canada and has a growing presence in Latin America through its stake in Dollarcity. Whether it’s essential supplies or day-to-day goods, Dollarama keeps things simple, offering low prices and everyday convenience. DOL stock is currently trading at $150.04 with a market cap of $41.7 billion. It’s up more than 43% over the last year.
In its latest earnings report for the quarter ended October 2024, the company posted $1.56 billion in revenue, reflecting a 5.7% YoY (year-over-year) increase. Similarly, its same-store sales for the quarter rose 3.3% from a year ago, and adjusted earnings saw a 6.5% bump YoY to $0.98 per share. Despite macroeconomic challenges and a slight dip in the demand for seasonal items, this growth was mainly driven by strong demand for consumables.
Interestingly, Dollarama recently raised its store target in Canada from 2,000 to 2,200 locations by 2034 and is investing $450 million to build a major logistics hub in Western Canada. That kind of forward planning, consistent financial growth, and a recession-resistant business model make this stock a standout for patient, long-term investors.
BlackBerry stock
Another interesting pick, with the potential to deliver some eye-popping returns in the long run, is BlackBerry (TSX:BB). It’s quietly shifting gears into a software-first company, with a growing focus on embedded systems for vehicles, industrial automation, and secure communications.
BB stock currently trades at $5.68 per share, giving it a $3.4 billion market cap. It’s gained over 52% in the past year and nearly 80% in the last seven months, showing signs of a sharp turnaround.
In its latest reported quarter ended November 2024, BlackBerry posted US$162 million in sales, mainly led by strong growth in its IoT (Internet of Things) segment, which jumped 13% sequentially. The company also posted US$23 million in adjusted quarterly EBITDA and US$12 million in adjusted net profit, flipping into positive territory and generating free cash flow ahead of schedule.
With the sale of its Cylance unit, BlackBerry is now sharpening its focus and capital toward areas that are more easily scalable and have solid long-term potential. Given the strong demand outlook for its services, this could be an excellent stock to watch closely, especially for investors looking for outstanding long-term returns.
