Some market analysts forecast Canadian equities to grow this year but at a slower pace. However, one sector that could shine brighter than others is technology. Two growth stocks are strong contenders, especially for long-term investors. MDA Space (TSX:MDA) and Vitalhub (TSX:VHI) are strong buys for their leading position in the space and healthcare industries, respectively.
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Space technology
MDA Space is worth considering if you’re looking for a high-growth technology investment. The $3 billion company operates in the rapidly growing global space industry. It aims to partner with emerging space companies, prime contractors, and government agencies through its next-generation space technologies.
The financial results in 2024 were mighty impressive. In the 12 months ending December 31, 2024, revenue and adjusted net income rose 33.7% and 13.5% to $1.1 billion and $111.1 million, respectively, compared to 2023. The backlog at year-end climbed 42% year-over-year to $4.4 billion.
MDA Space CEO Mike Greenley said, “We continued to grow our backlog, securing the next phases of the Canadarm3 program. The latter is the advanced space robotics system for NASA’s Artemis program. Work on important programs like the Telesat Lightspeed and Globalstar LEO constellations are also advancing.
According to Greenley, MDA Space is well-positioned to deliver another successful year in 2025. “We continue to execute our strategy to capitalize on growing market demand and deliver shareholder value,” he added. It acquired Israel-based SatixFy Communications Ltd., a leader in next-generation satellite communication solutions, early this month.
Greenley expects MDA to play a major role in leading the space industry into the future. If you invest today, the mid-cap stock trades at $24.63 per share.
Healthcare technology
Vitalhub also operates in a fast-growing market. The $549.4 million software company specializes in healthcare technology solutions. It has developed an ecosystem of harmonious solutions focused on the health and human services sectors. The comprehensive products and services include electronic health records, operational intelligence, and workforce automation solutions. Management continues to target organic opportunities within its product suite while pursuing an aggressive M&A plan.
“We are prepared to deploy capital on M&A, and we currently expect the pace of activity from 2024 to continue through 2025,” said Dan Matlow, CEO of VitalHub. In Q4 and full-year 2024, revenue and annual recurring revenue (ARR) climbed 31% and 59% year-over-year to $68.6 million and $71 million following four strategic acquisitions during the year.
The completed deals added $17.9 million of acquisition ARR. Matlow added, “We see areas for potential enhanced revenue growth and operational efficiency, with our goal of steadily expanding our cash flow margin over the next 12 to 18 months post-acquisition, as we have successfully accomplished historically.”
On April 10, 2025, the Toronto firm announced acquiring Induction Healthcare Group for $12.7 million. The U.K.-based healthcare technology company will further broaden product offerings. Expect Vitalhub’s momentum to build due to its growing platform functionality and reputational awareness.
VHI trades at $9.75 and carries a buy rating. Market analysts’ 12-month price target is between $13.18 (+35.2%) and $15 (+53.8%).
Market growth
The compelling reason to invest in MDA Space or Vitalhub is market growth. Your choice depends on which industry appeals to you more. Either business should thrive in the next decade and beyond.
