Growth stocks are companies that can grow their revenues and earnings at a higher rate than the industry average by reinvesting profits to fund expansion initiatives. They typically operate in innovative sectors such as technology or healthcare, prioritizing market share growth over near-term profitability. While their solid growth potential can translate into outsized long-term returns, these stocks are often more sensitive to market volatility.
Against this backdrop, let’s take a closer look at three Canadian growth stocks that have the potential to deliver fivefold returns over the next five years.
Celestica
Celestica (TSX:CLS) operates in several high-growth markets providing critical data centre infrastructure solutions. Supported by strong financial performance and an expanding addressable market, the company has delivered exceptional shareholder returns of 2,630% over the past three years, including gains of more than 212% this year alone.
As enterprises across industries and geographies rapidly integrate AI (artificial intelligence) into their operations, demand for computing power has surged. At the same time, hyperscalers are aggressively investing in AI-ready data centers, driving robust demand for Celestica’s products and services. To capitalize on this momentum, the company is prioritizing innovation and developing new offerings to strengthen its market position and accelerate financial growth. In addition, rising global defence spending amid ongoing geopolitical tensions could further support revenue growth in its Advanced Technology Solutions (ATS) segment.
Reflecting these multiple growth drivers, Celestica’s management expects revenue and adjusted EPS to grow by 26.4% and 52% in 2025, followed by further increases of 31.1% and 39% in 2026, respectively. Despite its strong performance, the stock continues to trade at a reasonable valuation, with a next-12-months price-to-sales multiple of 2.3, making it an attractive opportunity at current levels.
5G Plus
5N Plus (TSX:VNP) develops and manufactures specialty semiconductors and performance materials used in critical applications across several high-growth industries. Backed by strong operational execution, the company has delivered impressive shareholder returns of more than 687% over the past five years.
In its most recently reported third-quarter results, 5N Plus posted robust growth, with revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rising by 33.1% and 86.5%, respectively. This performance was driven by strong demand in the terrestrial renewable energy and space solar power markets within its specialty semiconductors segment, as well as improved pricing for bismuth-based products in its performance materials segment.
Looking ahead, as customers increasingly seek advanced materials from reliable, high-quality suppliers, management expects demand to remain strong across renewable energy and space solar applications. Supported by its global sourcing network and well-established manufacturing capabilities, 5N Plus enjoys a competitive edge over many of its peers. Given these favourable industry tailwinds and the company’s proven execution, I expect its financial performance to continue strengthening, which could translate into further upside for the stock.
Lightspeed Commerce
Another TSX-listed stock with the potential to deliver multi-fold returns over the next five years is Lightspeed Commerce (TSX:LSPD), which provides omnichannel commerce and payments solutions to merchants in more than 100 countries. After navigating a challenging period over the past couple of years, the company delivered a strong second-quarter performance last month, with revenue and adjusted earnings per share (EPS) increasing by 15.1% and 23.1%, respectively. Adjusted EBITDA surged 52.1% to $21.3 million, while free cash flow reached $18 million. Lightspeed also ended the quarter with a solid liquidity position, holding $462.5 million in cash and cash equivalents, providing ample flexibility to support its growth initiatives.
Looking ahead, Lightspeed continues to roll out innovative products and AI-powered tools, deepen the adoption of its payments solutions, and expand its geographic footprint, all of which position the company for sustained growth. In parallel, ongoing cost-optimization efforts – including the use of AI to streamline support and service operations – should further enhance efficiency and profitability. Despite these improving fundamentals, the stock trades at attractive valuation levels, with next-12-month price-to-sales and price-to-earnings multiples of 1.3 and 20.3, respectively. Considering these factors, I remain bullish on Lightspeed’s long-term growth prospects.
