Top Canadian Stocks to Buy for Growth in 2026

Discover why Exchange Income (TSX:EIF) stock is among the top growth stocks to buy in 2026 within the TSX, offering triple-digit returns and massive runways.

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Key Points
  • Exchange Income Corp (TSX:EIF) is a high-flying compounder. With a 102% total return over the past year and a PEG ratio of 1.0, this acquisition-led powerhouse is perfectly positioned to capture rising global defense spending.
  • Secure Waste Infrastructure (TSX:SES) stock an undervalued energy growth play Trading at a deep-value PEG of 0.7, this essential infrastructure leader offers resilient cash flows and 2026 earnings growth that the broader market is currently ignoring.

Canadian investors who get overly fixated on U.S. technology stocks as growth plays may easily miss the explosive top Canadian growth stocks to buy in 2026. Growth is happening at home too, and one of the TSX growth stocks I’ll talk about has already generated 101% in total returns during the past 12 months and remains unstoppable. The real wealth-compounding is happening in the Canadian mid-cap companies that are quietly dominating their respective niches.

If you’re looking to beat the TSX in 2026, it’s time to look past the veil of volatility-inducing tariff headlines and focus on businesses with accelerating earnings and massive runways for expansion.

Here are three top Canadian growth stocks that look like absolute steals right now.

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Exchange Income Corp: A top growth stock to buy for 2026

Exchange Income Corp (TSX: EIF) is a widely diversified industrial manufacturing stock that’s enriching its shareholders after sustaining double-digit revenue and earnings growth rates over the past five years. Often known as a monthly dividend stock for passive income purposes, Exchange Income is a sophisticated acquisitions-led growth stock to buy in 2026.

EIF specializes in buying profitable, niche aviation and manufacturing businesses that provide essential services. It owns businesses with massive competitive moats that consistently generate positive cash flow, replenishing the valuable cash resource management used to finance new acquisitions that sustain double-digit growth momentum.

The company has since announced a new acquisition this year. It acquired MnM Aircraft Component Holdings (MACH 2) this month.

Moreover, the company’s aerospace and aviation segment deals with defence contractors and government defence agencies. As Canada, Europe and the Middle-East increase their defence budgets, I speculate that Exchange Income may earn a good portion of the new security spend.

Despite its consistent double-digit revenue and earnings growth, EIF stock trades at a forward P/E of just 25 times. When you factor in its earnings growth trajectory, the stock carries a forward price-earnings-to-growth (PEG) ratio of roughly 1. The growth stock is still fairly valued despite a 94% rally during the past year. Its growing monthly dividends, which yield 2.8% today, lifted total returns for investors to 102% over the past 12 months.

Finding a proven growth compounder with a PEG ratio at or below 1 is rare. This is a rare opportunity to buy a dividend-paying business with an exciting investment returns profile.

An undervalued growth stock: Secure Waste Infrastructure

If you want to play the energy sector without the stomach-churning volatility of oil prices, Secure Waste Infrastructure (TSX: SES) stock is your best bet. Formerly known as Secure Energy Services stock, Secure Waste Infrastructure provides the critical waste management and environmental infrastructure that the energy industry requires. As environmental regulations tighten, the waste management company’s specialized facilities become more valuable. The company’s services should see growing recurring demand as Canadian energy companies grow production.

The company has spent the last year optimizing its massive asset base in the Montney region following a series of consolidations. The result is a resilient, high-margin infrastructure business that generates incredible amounts of cash flow from environmental waste management, energy infrastructure, and oilfield services. While the market treats it like a cyclical energy stock, its revenue has been far stickier than many investors seem to acknowledge.

U.S. steel tariffs in 2025 ate into cash flow, but the company has recalibrated its metals recycling segment to mitigate tariff-related disruptions. Management guides for significant operating earnings growth in 2026 and has just increased dividends by 5% in a show of confidence in the company’s cash flow and business outlook.

Up 12.6% so far this year, SES stock currently trades at a forward P/E of only 15.8 times. Its PEG ratio sits deep in undervalued territory at 0.7, suggesting the market is significantly underestimating the business’s future earnings growth potential.

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.

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