Investing in quality stocks that are part of expanding addressable markets is a solid strategy to generate outsized gains over time. In this article, I have identified two such Canadian stocks you can buy and hold to derive market-beating returns over the upcoming decade.
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Is this Canadian stock a good buy?
Valued at a market cap of $614 million, Aduro Clean (CNSX:ACT) is engaged in the development of water-based chemical recycling technologies. Its platform converts end-of-life plastics and tire rubber into specialty chemicals and fuels, upgrades heavy crude oils, and transforms renewable oils into renewable fuels and specialty chemicals.
Aduro Clean Technologies offers a proprietary technology that could reshape how the world handles plastic waste. What sets Aduro apart from established players like Dow Chemical, SABIC, and Honeywell is its unique approach to breaking down plastic waste.
Traditional chemical recycling relies on pyrolysis, a heat-intensive process that requires expensive molecular hydrogen and can only handle the cleanest feedstock with a polyolefin content of at least 90%.
Aduro’s chemolysis technology operates at lower temperatures, tolerates higher levels of contamination, and eliminates the need for hydrogen.
This breakthrough resulted from the discovery that metals which naturally present in heavy oil act as catalysts under specific conditions, enabling precise molecular breakdown without the penalties associated with conventional high-heat processes.
While competitors build massive centralized facilities processing 100,000 tons annually and fight over premium feedstock, Aduro can operate economically at just 25,000 tons per year.
Untapped opportunity
This scalability opens access to the 90% of plastic waste that mechanical and chemical recyclers currently ignore, representing an enormous untapped market from the 400 million tons of plastic produced globally each year.
Aduro is currently burning approximately $750,000 monthly with around $15 million in cash reserves. The company has already allocated $5 million toward long lead items for its next-generation equipment.
Management expects to commission a 10-kilogram-per-hour pilot plant by late 2025, with plans for a one-ton-per-hour demonstration unit by early 2027. It projects a return on investment between five and seven years, which would be exceptional in the chemical recycling sector.
Aduro has secured engagement with major players, including TotalEnergies, which progressed from technology evaluation to a full collaboration agreement.
While pre-revenue, Aduro is forecast to end 2029 with sales of $228.3 million. It is also expected to report an adjusted net income of $100 million in 2029, compared to a loss of $12 million this year. If the Canadian stock is priced at 15 times forward earnings, it should gain over 150% within the next four years.
Is this battery stock a good buy?
Valued at $330 million by market cap, Electrovaya (TSX:ELVA) is engaged in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications in North America. The TSX stock has tripled investor returns in the last 12 months and remains a top investment in November 2025.
Electrovaya delivered another strong quarter with revenue surging 67% year-over-year to US$17.1 million while posting its second consecutive quarterly profit of US$900,000.
The lithium-ion battery manufacturer achieved adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of nearly US$3 million, representing a healthy 17% margin, as demand accelerated across its core material handling business and emerging applications.
The company secured over US$21 million in new orders during the quarter, bringing total orders to US$65 million for the nine months ended June 30.
Management initiated a second shift at its Mississauga facility in June and began assembly operations at its Jamestown location in May to meet growing demand. These capacity additions position Electrovaya to scale production for both existing battery systems and new products targeting robotics, airport ground equipment, and defence applications.
Electrovaya is forecast to report free cash flow of US$76.6 million in fiscal 2029 (ending in September), compared to an outflow of US$4.8 million in fiscal 2025. If the TSX stock is priced at 15 times forward FCF, it should gain close to 400% within the next four years.
