Buying a growth stock at an early phase often requires looking past near-term market noise and focusing on what truly matters. While share prices can swing for many reasons in the short term, strong execution, growing demand, and long visibility on future revenue tend to win in the end.
Right now, one Canadian aerospace company, MDA Space (TSX: MDA), looks really attractive to buy for all the right reasons while its stock trades well below recent highs. The company is deeply involved in satellites, space robotics, and Earth observation, areas seeing rising global investment. Moreover, its recent results show fast revenue growth and improving profitability, even as this growth stock remains under pressure. In this article, I’ll explain why MDA could be the smartest growth stock to buy with $1,000 right now.
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Why MDA could be a great growth stock to buy right now
If you don’t know it already, MDA Space operates in three core areas. Its satellite systems remain the largest contributor to its financials, while robotics and space operations, and geointelligence add diversification to its offerings. The company supports communication satellites, space exploration programs, and Earth observation missions for government and commercial customers.
MDA stock currently trades at $24.34 per share, giving it a market cap of about $3.1 billion. The company does not pay a dividend at the moment, as it continues to reinvest heavily to support long-term growth initiatives.
Despite its improving financials, this growth stock is trading nearly 50% below its 52-week high. Over a longer view, however, MDA shares are still up more than 300% over the last three years, showing how powerful its recent growth cycle has been.
What the recent numbers are telling investors
To understand why MDA stock looks attractive right now, let’s take a closer look at its latest financial growth trends. In the third quarter, MDA’s revenue surged by 45% YoY (year-over-year) to $409.8 million. This jump was mainly driven by higher activity in its satellite systems business, supported by programs like Telesat Lightspeed and Globalstar, along with its rising work in robotics and space operations. With this, the company registered a solid 49% YoY increase in its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) to $82.8 million as higher volumes helped offset program mix changes.
These factors drove MDA’s adjusted net profit up by 33% in the latest quarter to $46.1 million, reflecting improved operating performance even after factoring in acquisition-related costs. While the company’s operating cash flow declined compared with last year, it was mainly due to working capital swings and the SatixFy acquisition, rather than weakening demand.
Why long-term visibility sets it apart
Interestingly, MDA ended the latest quarter with a backlog of $4.4 billion, which gives clear visibility into its revenue for 2025 and beyond.
Moreover, its recent contract wins with the Canadian Space Agency and a strategic partnership involving the Department of National Defence clearly show long-term demand across civil and defence markets. At the same time, MDA continues to expand manufacturing capacity and invest in next-generation digital satellite technology to prepare well for the next phase of industry growth.
Overall, with a net debt-to-adjusted EBITDA ratio of just 0.3 times, MDA’s balance sheet remains healthy, giving it flexibility to keep investing without stretching its finances. These positive factors make it one of the smartest growth stocks to buy now and hold for the long term.
