If you’re looking to create wealth in the long run and have an appetite for taking a little more risk, consider investing in TSX small-cap stocks. Notably, these Canadian companies can evolve into big players over time and generate massive returns along the way.
However, small-cap stocks are highly volatile, meaning their prices can fluctuate sharply in response to market shifts. Thus, investors should look for companies with strong fundamentals, a competitive edge, and solid growth prospects.
Against this backdrop, here are three top small-cap stocks to consider buying now.
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Propel Holdings
Propel Holdings (TSX:PRL) is a compelling small-cap stock for investors seeking growth and income. The fintech specializes in lending to consumers underserved by traditional banks across Canada, the U.S., and the U.K. Its growth trajectory has been solid. Notably, since 2019, the firm’s revenue has grown at a compound annual growth rate (CAGR) of 46%, while adjusted earnings per share (EPS) surged at an 83% CAGR.
The company continues to post strong credit performance, powered by its AI-driven underwriting platform and seasoned team. In Q2 2025, Propel’s combined loan and advance balances rose 33% year-over-year to $520.4 million, reflecting robust demand and disciplined lending practices.
Looking ahead, Propel is investing heavily in technology and infrastructure to support revenue expansion and efficiency. By diversifying its marketing partnerships, optimizing costs through automation, and extending its reach into new regions, the company is positioning itself for sustained growth and profitability. Its balance sheet remains strong, with operating cash flow and funding capacity supporting growth initiatives and a higher dividend.
With plans to expand into the near-prime market, broaden its product suite, and deepen bank partnerships, Propel is well-positioned to deliver long-term shareholder value through solid growth and reliable dividend income.
5N Plus
5N Plus (TSX:VNP) is one of Canada’s top small-cap growth stories. The company provides high-performance materials and semiconductor solutions with applications in the fastest-growing industries, from renewable energy and healthcare to advanced imaging. Thanks to its high-growth end markets and robust financials, 5N Plus stock has surged more than 115% over the past year. Moreover, it is up about 785% in three years.
Despite this massive rally, the momentum looks far from over. Demand for its advanced materials continues to rise, and a significant order backlog reflects steady growth ahead. With its strong positioning in niche areas such as space-based solar power and medical imaging, 5N Plus has a unique advantage and is likely to deliver solid growth. Moreover, it is also a leading supplier of ultra-high-purity semiconductor materials outside China, a strategic position that strengthens its global relevance.
With solid manufacturing capacity, strong client relationships, and selective acquisitions, 5N Plus appears well-positioned to deliver sustained long-term growth.
Bird Construction
Bird Construction (TSX:BDT) is another top small-cap Canadian stock to buy right now. Over the past three years, its shares have surged more than 400%, thanks to strong financial performance and promising growth prospects.
Its diversified operations, disciplined risk management, and focus on essential sectors like defence, transportation infrastructure, and energy enable it to generate reliable earnings while positioning Bird to capture long-term growth trends.
Its robust $4.6 billion project backlog offers visibility and confidence in future revenues. Bird maintains a healthy balance sheet, giving it the flexibility to invest in new opportunities and acquisitions. A recent example is its acquisition of Fraser River Pile & Dredge (FRPD), a move that significantly expands Bird’s infrastructure capabilities. FRPD brings expertise in marine and foundation work, higher-margin areas that should enhance profitability.
By combining FRPD’s strengths with its own, Bird is poised to enhance its presence in large-scale, nation-building projects, such as port expansions, trade routes, and energy infrastructure. With these growth drivers, Bird Construction looks well-positioned to continue rewarding shareholders.
