Investing in growth stocks can help build significant wealth in the long term, primarily through substantial capital gains. Notably, several Canadian companies have been consistently delivering impressive revenue and earnings growth, which, in turn, has propelled their stock prices higher. Moreover, you don’t need a large sum of money to get started. Even with a modest investment of around $500, you can begin building a portfolio of growth stocks that, over time, has the potential to generate outstanding returns.
Against this background, here are three no-brainer growth stocks with solid fundamentals and significant growth potential.
Bombardier stock
Bombardier (TSX:BBD.B) is one of the top Canadian growth stocks to buy now. Its stock has appreciated approximately 70% over the past year, significantly outperforming the broader markets. Furthermore, it has delivered a massive return of 903.8% over the past five years, growing at a compound annual growth rate (CAGR) of 58.5%.
While it has gained substantially in value, Bombardier’s dominant positioning in the business jet sector and improving financial strength indicate the rally is far from over. The company is benefitting from the rising global demand for private and business aviation, which is translating into a robust performance. Its revenue rose 19% year over year to $1.5 billion in the first quarter (Q1), driven by increased jet deliveries and growth in its high-margin services division. Profitability followed suit, with earnings per share (EPS) soaring 69% year over year, reflecting operating leverage.
Bombardier’s order backlog remained solid at $14.2 billion as of March 31, 2025, pointing to healthy future growth. For the full year, the company expects revenues to exceed $9.25 billion, supported by higher deliveries, expanding defence and service businesses, and stronger pricing.
Beyond growth, Bombardier is also deleveraging its balance sheet and boosting liquidity. At the same time, its strategic expansion into defence, services, and the pre-owned aircraft market is likely to enhance margins and provide resilience.
Aritzia stock
Aritzia (TSX:ATZ) is another attractive growth stock that can generate solid long-term gains. Thanks to its ability to consistently deliver solid top and bottom-line growth, Aritzia stock has grown at a CAGR of over 31% over the last five years, delivering overall capital gains of approximately 287%.
This clothing company’s focus on introducing new assortments, opening new boutiques across North America (primarily in the U.S.), and strengthening its e-commerce channel will accelerate its growth. Moreover, Aritzia’s focus on improving its inventory position, full-price selling, reducing warehousing costs, and enhancing supply chain efficiency positions it well to generate solid earnings, which will likely drive its stock price.
Aritzia’s leadership is forecasting strong growth, with revenue expected to rise at a CAGR of 15% to 17% through fiscal 2027. Moreover, the company is also working to improve operational efficiency, which is expected to drive its earnings. Together, these factors could give Aritzia’s stock meaningful upside in the years to come.
TerraVest Industries stock
Investors seeking a high-growth stock could consider TerraVest Industries (TSX:TVK). This diversified industrial manufacturer operates in multiple high-growth markets and consistently delivers solid financial results. Moreover, its focus on strategic acquisitions of market-leading businesses has accelerated its growth, leading to a significant rally in its stock.
TerraVest stock has delivered a stellar 121.8% gain in one year. Furthermore, it has increased by approximately 1,030% over the past five years. Despite the impressive rally, TerraVest stock has more room to run.
The company continues to benefit from the solid performance of its core operations, while recent acquisitions are expected to boost its financial results and unlock new growth avenues. TerraVest is also investing in expanding its product offerings and improving manufacturing efficiency. This will enhance its profitability.
Its healthy balance sheet and a newly secured credit facility position the company well to pursue further acquisitions, maintain its growth momentum, and deliver long-term value to shareholders.
