2 Canadian Stocks Supercharged to Surge in 2026

Two Canadian stocks riding self-sustained momentum are likely to surge higher in 2026.

Key Points
  • MDA Space (TSX:MDA) and Stingray (TSX:RAY) are high‑momentum TSX picks that look poised to outperform in 2026, backed by recent strong share gains and durable growth catalysts.
  • MDA carries a $4.4B backlog and major space/satellite contracts (e.g., Globalstar, Canadarm programs) supporting sizable upside, while Stingray’s record FCF, the TuneIn deal and expanding in‑car ad partnerships (BYD, Mercedes, Nissan) fuel its breakout potential.
  • 5 stocks our experts like better than [MDA Space] >

Market analysts project measured, if not muted growth, for the S&P/TSX Composite this year, compared with blockbuster returns in 2025. Also, given the bearish conditions, a third consecutive year of double-digit growth is unlikely. However, two supercharged Canadian stocks could overcome the headwinds and surge throughout 2026.

MDA Space (TSX: MDA) has risen nearly 63% over the last three months, while the Stingray Group (TSX: RAY.A) advanced plus-28.3% in the same period. The former ranked 15th on the 2025 TSX30 List, while the latter is a potential breakout winner for 2026.

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High-growth areas

MDA Space earned its spot as one of the 30 top Canadian stocks in 2025 due to its plus-340% dividend-adjusted share price performance over a three-year period. At the current share price of $34.90, the three-year total return is an eye-popping plus-422.5%, a compound annual growth rate (CAGR) of 73.5%.

The $4.4 billion space technology company’s three business units are all in high-growth areas. Its Robotics & Space Operations is MDA’s legacy, notably Canadarm 3, NASA’s Gateway mission. Gateway will support human and robotics missions, and it will be the first space station to orbit the Moon.  

MDA’s Satellite Systems unit signed a $1.1 billion contract with Globalstar for the construction of a next-generation LEO (low earth orbit) constellation. The Canadian firm is the pioneer in Geointelligence. Governments and companies use the satellite data this unit provides to monitor activities on Earth from the sky, including defence operations.

The massive $4.4 billion backlog to start 2026 provides revenue visibility for years to come. MDA reported a net income of $84.5 million in the first three quarters of 2025, representing a 55.6% year-over-year increase. Management expects demand for space-based solutions to grow significantly in the coming years. MDA Space would be at the forefront of the fast-growing space economy.

The market analysts’ 12-month average price target is $47.06, a plus-34.8% upside potential.

Digital ad and music powerhouse

Stingray’s strong financial results and record free cash flow (FCF) in Q3 fiscal 2026 should heighten investors’ interest in the stock. For the three months ending December 31, 2025, adjusted net income and adjusted FCF rose 12.2% and 21.5% to $26.3 million and $34.8 million, respectively, versus Q3 fiscal 2026. For the first three quarters, net income climbed 25.1% year-over-year to $36 million.

The $1.1 billion company has become Canada’s media and technology powerhouse, with a global leadership position in digital advertising and connected-car technology. The acquisition of live audio streaming titan TuneIn in late 2025 is a game-changer. In addition to boosting digital audio presence, Stingray strengthened its advertising and monetization capabilities.

Stingray’s in-car entertainment strategy continues to gain ground, as evidenced by recent agreements with world-class automotive brands BYD, Mercedes, and Nissan. The company aims to cement its role as the essential partner for the connected car.

At $16.96 per share, the three-year gain is plus-225.8%, enough to land in the 28th spot on the 2025 TSX30 List. On February 10, 2026, Stingray announced that its stock would trade under a single ticker. If you’re investing today, look for RAY instead of the ticker symbol RAY.A.

Self-sustained momentum    

MDA Space and Stingray are riding self-sustained momentum amid an uncertain period. A $4.4 billion backlog and transformative strategic acquisitions, respectively, should deliver massive gains in 2026.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends MDA Space and Stingray Group. The Motley Fool has a disclosure policy.

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