Growth stocks have the potential to grow faster than industry averages, which can translate into superior long-term returns. These companies typically reinvest a significant portion of their earnings to fund expansion and innovation initiatives. However, due to the evolving nature of their businesses and their heightened sensitivity to market volatility, growth stocks are often considered high-risk investments.
Against this backdrop, let’s examine two growth stocks that have the potential to deliver superior returns over the next three years.
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5N Plus
5N Plus (TSX:VNP) develops, manufactures, and markets specialty semiconductors and performance materials used in critical applications across several high-growth industries. Supported by solid financial performance, strong growth prospects, and the rapidly expanding global semiconductor market, the company has delivered impressive returns since the beginning of 2025. After posting a robust 140% gain last year, the stock is up a further 36% year to date.
Last week, 5N Plus secured a US$18.1 million grant from the U.S. government to expand and enhance its capabilities to recycle and refine germanium from industrial residues and mining by-products. This initiative could strengthen optics and solar germanium crystal supply chains in the United States while positioning the company to meet rising demand for germanium-based technological applications. In addition, the company plans to increase its solar cell production capacity by 25% this year by expanding the manufacturing capabilities of its subsidiary, AZUR SPACE Solar Power GmbH.
Looking ahead, the growing adoption of artificial intelligence (AI) and the increasing use of connected devices create significant long-term growth opportunities for 5N Plus. Its expanded sourcing network and well-established manufacturing platform provide a competitive edge, enabling the company to capitalize on favorable secular trends.
Following strong buying interest in recent months, VNP’s valuation has risen, with its next-12-month price-to-sales and price-to-earnings multiples at 3.7 and 29.1, respectively. While the valuation appears elevated, the company’s superior growth outlook supports these levels, making the stock an attractive buy for growth-oriented investors.
Celestica
Another growth stock I am bullish on is Celestica (TSX:CLS), a leading provider of electronics manufacturing services. Last week, the company delivered a strong fourth-quarter performance, surpassing its revenue and adjusted earnings-per-share (EPS) guidance. Quarterly revenue climbed 44% year over year to $3.65 billion, well above management’s guidance range of $3.325–$3.575 billion. This outperformance was driven primarily by robust demand in its Hardware Platform Solutions business, where revenue surged 72%, lifting the Connectivity & Cloud Solutions (CCS) segment’s revenue to $2.86 billion, up 64% year over year. Meanwhile, revenue from the Advanced Technology Solutions (ATS) segment declined modestly by 1% to $0.80 billion, partially offsetting the gains.
Alongside strong top-line growth, the expansion of Celestica’s adjusted operating margin—from 6.8% to 7.7%—significantly boosted profitability. As a result, adjusted EPS jumped 70% year over year to $1.89. Management also noted that demand for AI-related data-centre technologies continues to strengthen. To support customers’ long-term AI infrastructure investments, the company plans to invest $1 billion in capital expenditures this year, funded organically through operating cash flows. Reflecting this favourable demand environment and ongoing expansion, management raised its 2026 guidance, with revenue now expected to grow 37.2% year over year and adjusted EPS projected to increase by 44.6%.
Despite solid quarterly results and an upgraded outlook, Celestica’s shares have declined by more than 18% since the earnings release. The selloff appears to reflect investor concerns over rising capital expenditures and uncertainty around near-term returns from AI investments. However, following this pullback, the stock’s valuation has become more attractive, with next-12-month price-to-sales and price-to-earnings multiples of 1.9 and 31.3, respectively. Considering its strong execution, improving margins, and long-term AI-driven growth opportunities, I believe Celestica represents an excellent buying opportunity at current levels, despite near-term volatility.
