Growth stocks are companies capable of growing their revenues and earnings faster than their industry peers, offering the potential for outsized returns. This strong growth outlook often leads investors to assign premium valuations to such stocks. However, as many of these businesses are still evolving, they can also carry higher levels of risk. With this in mind, let’s explore three Canadian growth stocks that could deliver superior returns in the years ahead.
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Lightspeed Commerce
Lightspeed Commerce (TSX:LSPD), a global provider of point-of-sale (POS) systems and payments platforms serving businesses in more than 100 countries, appears to be an attractive buying opportunity amid improving financial performance, solid growth prospects, and a discounted valuation. In its recently reported second quarter of fiscal 2026, the company delivered strong results, with revenue and adjusted earnings per share rising by 15% and 23%, respectively. Lightspeed also generated $18 million in adjusted free cash flow and ended the quarter with $462.5 million in cash and cash equivalents, providing sufficient financial flexibility to support its growth initiatives.
Looking ahead, the increasing adoption of omnichannel selling represents a significant long-term growth opportunity for Lightspeed. The company continues to enhance its platform by launching innovative products, including AI-powered tools that address its customers’ evolving needs. Supported by these growth drivers, management expects gross profit and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at annualized rates of 15–18% and 35%, respectively, through 2028.
Despite these improving fundamentals, Lightspeed’s stock remains under pressure and is still trading nearly 90% below its all-time high. The shares currently trade at attractive next-12-month (NTM) price-to-sales and price-to-earnings multiples of 1.2 and 19.1, respectively. Considering its strengthening financial performance, long-term growth opportunities, and compelling valuation, I remain bullish on Lightspeed’s prospects.
Savaria
Another growth stock I am bullish on is Savaria (TSX:SIS). The accessibility solutions provider has made a strong start to the year, with its share price up 10.6% year to date. The company’s long-term growth outlook remains attractive, supported by the powerful demographic tailwind of an aging population. With geographically diversified manufacturing facilities and a well-established dealer network, Savaria is well-positioned to capitalize on this favourable trend. In addition, the company continues to focus on launching innovative products to strengthen its competitive position and drive future growth.
Operationally, the completion of its Savaria One initiative last year has delivered meaningful efficiency gains through optimized factory layouts, streamlined inventory management, and consolidated procurement across its operations. As a result, Savaria’s adjusted EBITDA margin has surpassed its targeted 20% level. The company is also optimizing its supply chain and North American manufacturing footprint to ensure reliable service and maintain competitiveness amid ongoing geopolitical uncertainties.
Beyond its growth initiatives, Savaria pays a monthly dividend of $0.0467 per share, yielding 2.22% on a forward basis. Coupled with reasonable valuation metrics—NTM price-to-sales and price-to-earnings multiples of 1.9 and 18.8, respectively—Savaria appears to offer an attractive combination of growth, income, and value at current levels.
goeasy
goeasy (TSX:GSY) is another growth stock that has come under pressure recently, trading more than 40% below its 52-week high. Weaker-than-expected third-quarter earnings, coupled with a short-seller report from Jehoshaphat Research, have weighed on investor sentiment and driven the stock lower.
That said, the broader macroeconomic backdrop appears increasingly supportive. Since June 2024, the Bank of Canada has cut its benchmark interest rate nine times, bringing it down to 2.25%. Lower interest rates typically stimulate economic activity and increase demand for credit, which could benefit goeasy’s consumer lending business. With an expanded product portfolio and a growing network of distribution channels, the company is well-positioned to capture this potential demand. In addition, management is implementing next-generation credit models, tighter underwriting standards, and more disciplined collection practices—initiatives that should help reduce delinquencies and improve overall profitability over time.
Looking ahead, goeasy’s management expects its loan portfolio to grow to between $7.35 billion and $7.75 billion by 2027. The midpoint of the guidance represents a 38.8% increase from third-quarter levels. Amid these expansions, its revenue could grow at an annualized rate of 11.3% through 2027, while operating margins could improve to approximately 43%.
Combined with these growth prospects, goeasy’s attractive dividend yield of 4.5% and its compelling NTM price-to-earnings multiple of 6.7 make the stock an appealing buy.
