When markets are unpredictable, the word “growth” may suddenly sound like a gamble. But it doesn’t have to be. In fact, for investors with a clear plan and a long Foolish Investing approach, times like these can be some of the best to get positioned. With $20,000 to invest and an eye on future-focused sectors, the real challenge is pinpointing the growth stocks with real upside.
Let me show you how I’d allocate that capital in today’s volatile market to maximize growth potential while managing risk.
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Dollarama stock
First, let’s begin by taking a look at why a safe growth stock like Dollarama (TSX:DOL) might be a great place to start. This value-focused retailer offers a wide range of everyday goods and seasonal items and runs over 1,600 company-owned stores across Canada. At $151 a share and a market cap of just under $42 billion, Dollarama stock has quietly climbed nearly 32% in the last year.
Despite the ongoing economic uncertainties, Dollarama’s business is continuing to perform well. In the latest quarter ended in January 2025, the company’s sales jumped nearly 15% YoY (year over year) to push its quarterly revenue to $1.88 billion. Its profitability also saw a healthy boost, with adjusted earnings rising 21.7% YoY to $1.40 per share. The company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin reached 35.6% last quarter compared to 34.1% a year ago — reflecting its focus on efficiency, even as store count and costs grow.
Meanwhile, Dollarama is continuing to flex its expansion muscle, opening 65 new stores in the past year and ramping up its Latin American presence through Dollarcity. In addition, its upcoming launch in Mexico and plans for a massive logistics hub in Western Canada show the company is thinking big for the long term. Considering that, Dollarama could be a great stock to consider right now, especially if you’re looking for a strong growth stock that’s been delivering consistently and still has room to run.
NFI Group stock
NFI Group (TSX:NFI) could be another Canadian growth stock that’s pushing forward in a big way. This Winnipeg-based company mainly manufactures buses and coaches, with a growing focus on zero-emission models like electric and hydrogen vehicles. NFI stock currently trades at $10.59 per share with a $1.3 billion market cap.
In the fourth quarter of 2024, NFI delivered a 5% YoY increase in its total revenue to US$837 million, while its adjusted EBITDA jumped 76% from a year ago with the help of higher deliveries of electric buses and more sales of medium-duty and cutaway vehicles.
Interestingly, NFI currently has a record US$12.8 billion backlog, with over 40% of future orders being electric models. With strong demand, production efficiencies improving, and more zero-emission wins ahead, NFI stock has the potential to outperform the broader market by a wide margin in the long run.
How to allocate $20,000 in these growth stocks
If I had $20,000 to deploy right now, I’d consider putting half into a reliable grower like Dollarama and the other half into a high-upside play like NFI. This mix could give you a solid base of consistent returns while also positioning you to benefit from major trends like zero-emission transit in the future.
