Finding stocks with strong long-term potential seems challenging as market volatility raises emotions and too much information (noise) clouds judgement. Canadian investors looking beyond the daily headlines and into the promising horizon of 2026 and beyond should focus on companies with durable competitive advantages and clear growth runways.
Two standout Canadian growth stocks that embody these attributes are MDA Space (TSX:MDA) and Descartes Systems Group (TSX:DSG). One represents a high-octane growth story in the space exploration and communications frontier, while the other offers steady, mission-critical software growth. Both TSX stocks look set to soar in 2026 and beyond. Here’s why they deserve a spot in a forward-looking portfolio.
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MDA Space stock’s down-to-Earth value
Down 47% from recent all-time highs, MDA Space is a contrarian bet that could pay very well as it recovers in 2026 and beyond. The satellite technology leader is a premier partner to the rapidly expanding global space industry, providing everything from satellite systems and robotics to geointelligence solutions.
While an abrupt contract cancellation following its customer EchoStar Corporation‘s sale of key licenses to Elon Musk’s SpaceX triggered a sell-off on MDA stock, the potential revenue loss didn’t make a dent on the space growth partner’s revenue and cash flow statements in 2025. Instead, the company reported strong 45% year-over-year growth in sales for the third quarter to $409.8 million.
MDA Space entered the fourth quarter with a commanding backlog of more than $4.4 billion, which may soon grow in 2026 following the government of Canada’s multi-billion military satellite communications deal with Telesat and MDA in December.
Despite MDA’s strong operational position, the stock has pulled back significantly from its highs. This disconnect between business performance presents a compelling contrarian investment case for investors with a multi-year (long-term) investment horizon.
The latest military communications deal may show in MDA’s backlog in early 2026, igniting new investor interest in the growth stock as it participates in a multi-decade expansion of the space economy, fueled by satellite constellations and global security needs. MDA’s beaten-down stock price reflects a forward price-earnings-to-growth ratio (PEG) of 0.6, implying shares are undervalued relative to the company’s earnings growth potential.
Descartes Systems Group stock: The steady growth engine for turbulent trade routes
Descartes Systems Group is mastering the complexities of global trade. As a leading provider of logistics and supply chain software, Descartes operates a vital Global Logistics Network that helps customers navigate tariffs, sanctions, and shipping volatility. It provides the indispensable software backbone that makes global commerce more efficient and predictable, even as trade winds cause tidal waves of uncertainty.
The company’s financials reflect the strength and consistency of its business model. Descartes has grown revenue at double-digit rates since 2022, and expanded its operating margins from 15% in 2019 to 28% during the past 12 months. Its balance sheet is ever strong, with no debt in its capital structure, and the software-as-a-service business generates strong free cash flow.
Descartes Systems stock is down about 25% year to date as revenue growth slowed from 15% levels to a forecast of 11% for 2026. Yet any surprises as the USMCA trade agreement comes up for review next year could increase demand and package usage for Descartes Systems’ offerings. The company is a serial acquirer, and new acquisitions could enhance growth in 2026 and beyond, while tighter security measures globally may increase shipping report volumes. Descartes charges per transaction, and revenue could grow.
The Canadian technology stock’s steady, predictable growth makes Descartes stock a classic “buy and hold” candidate for investors seeking resilient exposure to the foundational flows of global trade.
The Foolish bottom line
MDA Space and Descartes Systems Group stock represent two compelling, yet different, paths to potential growth. The stock market doesn’t always price in long-term value in the short term. For MDA, recent stock weakness contrasts with a booming business while Descartes Systems’s strong multi-period performance still leaves room to climb toward higher price targets as trade policies evolve as nationalistic and protective tendencies reshape trade routes during the Trump administration. If you are building a portfolio for 2026 and beyond, both MDA Space and Descartes Systems Group are TSX stocks that deserve a closer look today.
