2 Canadian Growth Stocks Set to Skyrocket in the Next 12 Months

These Canadian growth stocks are backed by fundamentally strong businesses and are witnessing solid demand.

Key Points
  • Top Canadian growth stocks have the potential to deliver higher-than-average returns and help create significant wealth in the long run.
  • Cameco and MDA Space are top Canadian growth stocks likely to continue benefiting from solid industry tailwinds.
  • Both these stocks have gained significantly in value so far this year, and the momentum is likely to sustain over the next 12 months.

Investors seeking higher-than-average returns could consider growth stocks. These companies have the potential to scale quickly, increasing revenue and earnings well above their industry averages. When that momentum is sustained, it can translate into meaningful capital appreciation for shareholders.

With that backdrop, here are two Canadian stocks poised to skyrocket over the next 12 months. These growth stocks are backed by fundamentally strong businesses and are seeing solid demand, positioning them well to outperform the broader equity market by a wide margin.

3 colorful arrows racing straight up on a black background.

Source: Getty Images

Canadian growth stock #1: Cameco

Cameco (TSX: CCO) is a top Canadian growth stock poised to skyrocket over the next 12 months. Its shares have climbed about 32% year to date and have significant upside potential. The leading uranium producer is benefitting from a structural shift toward cleaner, more reliable baseload power. Rising global electricity demand, driven by decarbonization policies and the expansion of AI data centres, provides a solid base for long-term growth.

Cameco’s portfolio includes some of the highest-grade, lowest-cost uranium reserves globally, providing a durable cost advantage and resilience across commodity cycles. Its investments in Westinghouse Electric and Global Laser Enrichment extend its reach across the nuclear fuel value chain, strengthening its competitive moat.

Management’s disciplined production strategy and emphasis on long-term contracts enhance earnings visibility while preserving upside. By selectively securing new agreements and maintaining meaningful uncommitted volumes, Cameco retains the flexibility to capitalize on stronger uranium pricing as demand accelerates.

With favourable industry tailwinds, its large scale, and strategic positioning across the nuclear fuel cycle, Cameco appears well placed to outperform the broader equity market.

Canadian growth stock #2: MDA Space

Investors looking for top Canadian growth stocks poised to skyrocket over the next 12 months could consider MDA Space (TSX: MDA). As momentum builds across the global space economy, the company appears well-positioned to capitalize on rising demand, potentially driving both financial performance and shareholder returns over the next year.

The space technology company provides satellite systems, advanced space robotics, and geointelligence solutions that enable space-based communications, Earth observation, and complex space missions.

The company’s stock has already shown renewed strength, rising about 49% year to date, reflecting structural tailwinds supporting the sector. The global space economy continues to expand rapidly, driven by increased satellite deployments, defence modernization initiatives, and rising demand for Earth observation data. Both public and private sector players are accelerating investment in these areas, supporting MDA’s growth.

As a leading provider across multiple high-value segments of the space value chain, the company has diversified revenue streams and deep technical expertise. Its strong order backlog provides revenue visibility, while a solid balance sheet offers financial flexibility to pursue additional growth opportunities.

Overall, MDA Space is a compelling growth stock poised to benefit from rising demand and solid execution.

The bottom line

Cameco and MDA Space will continue to benefit from solid industry tailwinds, which will support their financials and drive share price higher over the next 12 months.

Cameco is set to gain from strong demand for nuclear energy, supply discipline, long-term contracting, and vertical integration across the fuel cycle. Meanwhile, MDA Space is capitalizing on sustained investment in satellite infrastructure, defence, and Earth observation, supported by a robust backlog and strong competitive positioning.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Cameco and MDA Space. The Motley Fool has a disclosure policy.

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