Growth stocks have the potential to grow faster than the broader industry, often translating into outsized long-term returns. Given this higher growth potential, investors are typically willing to pay a premium for these companies, which can drive up their valuations. However, because their business models are often evolving, and their share prices can be highly sensitive to market sentiment and economic conditions, growth stocks tend to be more volatile. As a result, they are generally better suited for investors with a higher risk tolerance.
With that in mind, let’s explore two growth stocks that could deliver superior returns in the years ahead.
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Shopify
Shopify (TSX: SHOP), a leading provider of internet infrastructure for commerce, is my first growth pick. The company recently delivered strong fourth-quarter results, with gross merchandise value (GMV) rising 31.1% year over year to $123.8 billion—marking its first quarter to surpass the $100 billion milestone. Revenue and operating income increased 30.6% and 35.7%, respectively. Supported by disciplined headcount management, Shopify expanded its operating margin by 70 basis points to 17.2%. The company also generated $715 million in free cash flow, up 17% year over year, although its free cash flow margin declined 220 basis points to 19.5%.
Looking ahead, the continued adoption of omnichannel commerce remains a powerful long-term tailwind. Shopify is investing in innovative, integrated solutions—including AI-powered tools—while expanding its payments platform into new markets and growing its presence across both direct-to-consumer (D2C) and business-to-business (B2B) segments. These initiatives could further strengthen its competitive positioning and support sustained growth.
For the first quarter of 2026, management has guided for revenue growth in the low 30% range and gross profit growth in the high 20% range. Free cash flow margins are expected to land in the low- to mid-teens, slightly below the prior-year quarter. Despite its strong fundamentals and growth outlook, Shopify trades more than 31% below its 52-week high, which may present an attractive entry opportunity for investors with higher risk tolerance.
5N Plus
Another growth stock that could deliver a strong performance in 2026 is 5N Plus (TSX: VNP), which has already generated an impressive 65% year-to-date return. Investor optimism has been fueled by the semiconductor industry’s expansion amid the AI boom, rising demand in terrestrial renewable energy and space-based solar power markets, and the company’s strategic growth initiatives.
Last month, 5N Plus secured a US$18.1 million grant from the U.S. government to expand and enhance its germanium recycling and refining capabilities at its St. George, Utah, facility. Over the next 48 months, the funding will support efforts to recover germanium from industrial residues and mining by-products, strengthen supply chains for optics and solar germanium crystals, and address growing demand for germanium-based technological applications in the United States.
In addition, the company recently announced plans to increase solar cell production capacity at AZUR SPACE Solar Power GmbH by 25% this year. Amid accelerating AI adoption and rising global connectivity needs, customers are actively securing high-quality components for future satellite programs and space missions, further expanding 5N Plus’s addressable market.
Following its recent rally, the stock’s valuation has risen, with the next-12-month price-to-sales and price-to-earnings multiples of 4.4 and 34.1, respectively. While these levels appear elevated, the company’s robust growth outlook and solid fundamentals could support continued momentum over the longer term.
