Growth stocks typically grow their revenues and earnings faster than the industry average, enabling them to deliver superior returns. Given this higher return potential, investors are often willing to pay a premium, thereby driving up valuations. However, due to their relatively expensive valuations and the evolving nature of their businesses, these companies tend to carry higher risk. As a result, growth stocks are better suited for investors with a higher risk appetite who can hold them in anticipation of outsized returns.
Meanwhile, Canadian equity markets staged a strong rebound last week, with the S&P/TSX Composite Index rising 1.7%. A recovery in metal prices and the unemployment rate hitting a 16-month low in January appear to have boosted investor sentiment, pushing equities higher. Against this backdrop, let’s look at two top growth stocks that have the potential to deliver superior returns this year.
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Celestica
Celestica (TSX:CLS) is one of the top growth stocks I remain bullish on, supported by its strong fourth-quarter performance and improving long-term growth outlook. In the recently reported quarter, the company’s revenue surged 44% year over year to $3.7 billion, comfortably exceeding management’s guidance range of $3.325–$3.575 billion. Robust demand for its Hardware Platform Solutions drove the Connectivity & Cloud Solutions (CCS) segment’s revenue up 64% to $2.9 billion. Meanwhile, the revenue from the Advanced Technology Solutions (ATS) segment declined marginally by 1% to $0.80 billion, offsetting some of the growth.
In addition to solid topline growth, margin expansion further boosted profitability. Celestica’s operating margin improved from 6.8% to 7.7%, while adjusted earnings per share (EPS) jumped 70.3% year over year to $1.89, surpassing management’s guidance of $1.65–$1.81. Encouraged by this strong execution and sustained demand momentum, management raised its 2026 revenue guidance from $16 billion to $17 billion and lifted its adjusted EPS outlook from $8.20 to $8.75.
Looking ahead, the shift from artificial intelligence (AI) pilot projects to full-scale deployment across core business operations is accelerating demand for advanced computing infrastructure. Hyperscalers have announced aggressive capital investments to expand data centre capacity, a trend that should meaningfully benefit Celestica’s products and services. Combined with its focus on developing innovative, higher-value solutions, the company appears well-positioned to capture this growth.
Despite these positives, Celestica’s stock is still trading at more than an 18% discount to its 52-week high, making it an attractive buying opportunity for growth-oriented investors.
5N Plus
Another growth stock I expect to outperform this year is 5N Plus (TSX:VNP), a producer of specialty semiconductors and performance materials that serve several high-growth end markets, including semiconductors and solar energy. The AI boom is accelerating semiconductor industry growth, unlocking attractive long-term opportunities for the company.
Adding to its growth prospects, 5N Plus recently secured a US$18.1 million grant from the U.S. government to scale its germanium recycling and refining capabilities using industrial residues and mining by-products. This funding could strengthen optics and solar germanium crystal supply chains in the United States, while enhancing the company’s ability to meet rising demand for germanium-based applications across advanced technologies.
Furthermore, 5N Plus plans to enhance the manufacturing capabilities of its subsidiary, AZUR SPACE Solar Power GmbH, which could increase solar cell production capacity by approximately 25% this year. Combined with its global sourcing network and well-established manufacturing footprint, these initiatives provide the company with a meaningful competitive advantage over its peers.
Considering these growth drivers and strategic investments, I believe 5N Plus is well-positioned to deliver solid returns and represents an attractive buying opportunity at current levels.
