TSX on the Rise: 2 Momentum Stocks to Buy Immediately

With Canadian equity markets trending higher, I expect the positive momentum in these two stocks to persist, potentially delivering stronger returns in the coming quarters.

Key Points
  • Momentum Stocks: 5N Plus and Savaria are well-positioned for continued growth, building on strong year-to-date performances and favorable industry trends.
  • Growth Drivers and Market Positioning: 5N Plus benefits from the semiconductor industry's AI boom and expanded germanium capabilities, while Savaria leverages product innovation and strategic acquisitions in the growing accessibility market, making them attractive buys for extending their rallies.

After experiencing a sell-off at the end of last month, the S&P/TSX Composite Index has rebounded sharply this month, climbing 4.2% as of February 11. A recovery in precious metal prices, along with renewed interest in technology stocks, appears to have lifted Canadian equities in recent days. With investor sentiment improving, let’s examine two momentum stocks that could extend their rallies in the coming quarters and potentially deliver strong returns.

stocks climbing green bull market

Source: Getty Images

5N Plus

5N Plus (TSX: VNP) manufactures and markets specialty semiconductors and performance materials used in critical applications across several high-growth industries. After delivering an impressive 140% return last year, the stock has maintained its strong momentum, gaining 56.6% year to date. In addition to the broader semiconductor industry’s expansion – driven by the growing adoption of artificial intelligence (AI) – the company’s solid quarterly performance has supported its recent share price strength.

Last month, VNP also received a US$18.1 million grant from the U.S. government to enhance its germanium recycling and refining capabilities at its St. George, Utah, facility. The funding could strengthen the company’s ability to recover germanium from industrial residues and mining by-products over the next four years. Combined with its existing sourcing capabilities, these enhancements should help meet rising U.S. demand for germanium-based technologies.

Furthermore, 5N Plus announced that its subsidiary, AZUR SPACE Solar Power GmbH, plans to expand solar cell production capacity by 25% this year. Supported by growing demand in both terrestrial renewable energy and space-based solar power markets, as well as favourable pricing for bismuth-based products, these initiatives should further bolster the company’s growth trajectory in the coming quarters. Given its solid fundamentals and strong growth outlook, 5N Plus appears well-positioned to extend its rally, making it an attractive buy right now.

Savaria

Another growth stock that has attracted solid investor interest this year is Savaria (TSX: SIS), a manufacturer and distributor of accessibility solutions for residential and commercial markets. Supported by its global manufacturing footprint, extensive dealer network, and direct sales offices, Savaria is well-positioned to market and deliver its products worldwide. The stock has also outperformed the broader market in 2026, generating a 10.8% year-to-date return.

With aging populations and rising demand for in-home accessibility solutions, the need for the company’s products and services continues to grow. To capitalize on this favourable trend, Savaria is investing in product innovation and pursuing strategic acquisitions to expand its capabilities and geographic reach. Most recently, the company acquired Baxter Residential Elevators, a home elevator and lift dealer and installer operating in North Texas. Baxter generated approximately $5.5 million in revenue last year, and with Texas ranking among the fastest-growing U.S. states, the acquisition strengthens Savaria’s presence in an attractive, high-growth market.

In addition, the completion of its “Savaria One” initiative at the end of last year has enhanced operational efficiency, helping lift adjusted EBITDA margins above 20%. The company is also optimizing its supply chain and North American manufacturing footprint to ensure reliable service and maintain competitiveness amid ongoing geopolitical and macroeconomic uncertainties.

Given its growth initiatives and improving operating efficiency, Savaria appears well-positioned to sustain its financial momentum, which should support further share price appreciation. The company also pays a monthly payout, currently yielding 2.2%, and trades at a reasonable forward 12-month price-to-earnings multiple of 18.7 – making it an attractive investment at current levels.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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