Top Canadian Stocks to Buy for Great Growth in 2025

There are some Canadian stocks starting to recover, and these two look like top choices.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 10, 2025 9:15 pm EDT

Investing in companies with strong growth potential can be a smart move. It can help your investment portfolio grow over time, the goal for everyone, no? In 2025, two Canadian tech companies look promising. These are Sylogist (TSX: SYZ) and Kinaxis (TSX: KXS). Both have shown good revenue numbers and are doing well in their fields. This makes them interesting for investors looking for growth. So, let’s get started.

Canada national flag waving in wind on clear day — Source: Getty Images

Sylogist

Sylogist is a software company focused on providing important cloud-based software. This software is for public sector organizations, including non-profits, schools, and government groups across Canada.

In the latest earnings report, for the last part of 2024, Sylogist showed strong financial results. The yearly software revenue from subscriptions (SaaS ARR) increased by a significant 17%, reaching $31.1 million. The total yearly recurring revenue also grew nicely, by 9%, reaching $44.9 million. These numbers show that more customers are using Sylogist’s cloud services, indicating a growing and loyal customer base.

For the fourth quarter of 2024, Sylogist’s total revenue was $15.3 million, with 72% coming from recurring revenue. Sylogist also achieved a good adjusted profit margin of 21.1% for the quarter, which came to $3.2 million. This margin shows that the Canadian stock is efficient in its operations and can make a good profit from revenue.

Looking at the entire fiscal year of 2024, Sylogist reported total revenues of $65.6 million, with recurring revenue making up 66% of this total. The Canadian stock has strategically worked to get more customers to use subscription-based cloud services. This has resulted in an impressive net revenue retention (NRR) rate of 108%! This means that Sylogist’s current customers are not only staying with the company but are also spending more on their services. This is a strong positive sign of customer satisfaction and the value of Sylogist’s products.

Kinaxis

Kinaxis is a leading provider of cloud-based software for managing supply chains. Their main product, RapidResponse, helps companies in different industries. It allows them to connect and manage their complex supply chain operations more efficiently and with greater flexibility.

In the financial report for the fourth quarter of 2024, Kinaxis reported a significant 17% growth in its software subscription revenue (SaaS revenue). This contributed to a total revenue of US$121.5 million for the quarter. The total revenue figure represents a solid 12% increase compared to the same period in the previous year. This shows that more and more companies are adopting these supply chain solutions.

For the fourth quarter of 2024, Kinaxis achieved an adjusted profit margin of 17%, remaining profitable while also growing revenue. The Canadian stock also reported a record number of new deals and new customers for the quarter. This signals strong demand in the market for their innovative supply chain management platform.

Financial analysts who follow Kinaxis are optimistic about the company’s future growth. They predict revenues of US$543.2 million for the full year of 2025. If they achieve this, it would be a notable 12% increase over the total revenue reported in 2024. This indicates that the company has strong momentum in its business.

Foolish takeaway

For investors looking for growth in the Canadian technology sector, both Sylogist and Kinaxis offer compelling reasons to invest. Sylogist’s focus on the public sector provides a relatively stable market. There is a constant need for specialized software solutions in areas like education and government. Their successful shift to a subscription-based (SaaS) revenue model is also important. This model offers scalability, meaning the company can grow without a proportional increase in costs. It also provides predictable recurring revenue.

Meanwhile, Kinaxis operates in the crucial area of supply chain management. This sector has become even more important in recent years. Global events have highlighted the need for strong and efficient supply chains. Kinaxis’s consistent revenue growth and the ability to win new business and customers suggest they are in a good position.

While both Sylogist and Kinaxis have shown strong revenue growth and have good potential in their respective tech areas, investors need to be careful. It’s always a good idea to spread your investments across different sectors. You should also do thorough research on each company you are considering investing in to make informed decisions.