Canadian investors have access to many different Canadian stocks that have the potential to earn outsized returns. While earning a 900% return is not an easy thing to do, a basket of the right stocks could make this dream a reality. Of course, it takes a lot of patience and the right kind of stocks to make this happen.
Here are three Canadian stocks that could be great candidates in your quest for real, life-changing returns. Each of these stocks has a part to play in industries that are benefiting from strong secular trends.
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Ballard Power
While Ballard Power Systems Inc. (TSX: BLDP) offers investors a lot of potential for outsized returns, I understand that it does have a long and complicated past. The company has gone through many different iterations of what it is today, with different strategies and attempts to break through to the mass commercialization of its fuel cell engines.
Yet today, I remain optimistic that the company is on the cusp of achieving its goals. While it has not been easy, fuel cell-powered engines have made significant headway in heavy-duty vehicles such as buses, trains, and even ships.
In Ballard’s latest quarter, the overriding theme was that new headwinds and changing regulations have resulted in delayed adoption of its fuel cells. Not good – yet, this was the driving force in the company’s renewed focus on margins, cash flows, and efficiencies. And that is good. Revenue increased 11% in the quarter, with gross margins up 24 basis points. The company has no debt and $550 million of cash on its balance sheet. Finally, management has set a target to be cash flow positive by the end of 2027. The pipeline of orders for the second half of 2025 is strong in the material handling, rail, and bus segments.
Blackberry
The next Canadian stock I’d like to highlight for its potential for outsized returns is Blackberry Ltd. (TSX: BB). Similar to Ballard, Blackberry has a long history. Also similar to Ballard, I believe that Blackberry is on the cusp of finally reaching its goals.
Blackberry’s QNX is a leader in the connected car market, as well as in other industries such as medical technology. In the connected car market, Blackberry has a more than 90% market share of advanced vehicle software for cars. In its latest quarter, Blackberry’s revenue increased 3% to $129.6 million, and net income came in at $13.3 million. Also, adjusted earnings per share came (EPS) in at $0.04 versus $0.02 in the prior year and expectations that were calling for EPS of $0.01.
Within its QNX segment, Blackberry reported 15% growth in revenue, along with a 32% margin. As Blackberry has made good progress over the last year or so, its stock price has also been coming alive to some extent. In fact, Blackberry’s stock price has almost doubled in the last year. I think the upside potential remains significant.
Peyto Exploration
As a natural gas producer, Peyto Exploration and Development Corp. (TSX: PEY) stands to benefit immensely from what I think will be a very bullish natural gas pricing environment. You see, LNG Canada is ramping up, exporting an increasing amount to international markets. This increase in demand will very likely drive natural gas prices higher over the next year or so.
But that’s not the only thing that the natural gas market has going for it. Demand growth is also coming from the utility sector, as the electrification push is gaining steam. Peyto is uniquely positioned to benefit from rising natural gas prices, as its low-cost and long-life assets have good access to premium markets.
In its latest quarter, Peyto reported solid results that showed the strength of the business even at low natural gas prices. Cash flow from operations increased 22% to $191 million and EPS increased 65%. The upside that exists with rising natural gas prices is very significant, and this makes this Canadian stock one to bet on for outsized returns.
