Even with lingering macroeconomic and trade uncertainties, the broader backdrop for the Canadian equity market remains constructive. Interest rates have moved lower, while consumer spending has proven more resilient. Further, investment in artificial intelligence (AI) infrastructure and space technology, the steady advance of electrification, and rising global energy demand are creating durable growth tailwinds. Together, these dynamics suggest that several TSX stocks have room to move higher.
Against this background, here are two Canadian stocks operating in favourable industry conditions and with unique booster power to rocket higher in 2026.
Source: Getty Images
Top Canadian stock #1: 5N Plus
5N Plus (TSX: VNP) is one of the top Canadian stocks rocketing higher in 2026. The company, a leading producer of specialty semiconductors and performance materials, is benefiting from strong structural demand across multiple high-value end markets. So far this year, the stock is up roughly 57%, and over the past 12 months it has surged more than 267%. Despite this rally, the company’s operating momentum and a favourable industry backdrop suggest further upside for 5N Plus stock.
Demand for its specialty semiconductors remains robust, driven by ongoing investment in terrestrial renewable energy projects. Meanwhile, a strong pipeline in the space power sector and the ramp-up of solar cell production are expected to provide additional growth tailwinds. In addition, its global sourcing and manufacturing footprint augur well for growth.
Broader structural trends are also working in 5N Plus’s favour. Solar energy is expected to remain a critical component of the U.S. energy mix, and, as a key North American supplier to major U.S.-based customers, the company is well-positioned within the value chain. This is already evident in its expanded supply agreements. The accelerating adoption of AI further strengthens the outlook, as AI-driven data centres and computing infrastructure will require vast amounts of clean, reliable energy, indirectly boosting demand for 5N Plus’s materials and technologies.
Another important factor supporting the investment case is the ongoing shift in global supply chains. As a leading supplier of high-purity materials outside China, 5N Plus will benefit as customers increasingly prioritize secure, diversified sources.
Overall, 5N Plus’s focus on high-growth end markets such as renewable energy infrastructure, space and satellite technologies, and pharmaceuticals augur well for growth. Further, its expanding production capabilities suggest it could continue to deliver solid gains through 2026 and beyond.
Top Canadian stock #2: CES Energy
CES Energy (TSX: CEU) is another top Canadian stock poised to rocket higher in 2026. The company supplies advanced consumable chemical solutions that help oil and gas producers improve production and efficiency while safeguarding critical infrastructure throughout the entire production lifecycle.
The higher service intensity in upstream operations has driven increased demand for CES Energy’s products. Further, a shift toward higher-value chemical solutions has improved its overall product mix. Strategic acquisitions have also played a meaningful role, expanding its capabilities and strengthening its platform. These factors have translated into strong financial performance, with the stock up roughly 27% year-to-date and nearly 80% over the past 12 months.
Looking ahead, upstream activity remains supportive, and producers are increasingly relying on advanced chemical solutions to improve efficiency and reduce downtime.
Macroeconomic and political uncertainty remains a consideration, particularly with the recently imposed tariffs, which are creating near-term noise for the energy sector. However, CES Energy is relatively well insulated from these pressures. The majority of its revenue is generated in the U.S., and its vertically integrated operations on both sides of the border, along with a flexible supply chain, help mitigate cross-border and cost-related risks.
Adding to the investment appeal is CES Energy’s capital-light business model, which consistently generates healthy free cash flow. With U.S.-weighted revenue, integrated North American operations, and a resilient supply chain, the company is positioned to navigate market volatility while continuing to deliver solid returns.
