There’s plenty of doom and gloom in the market right now, and I have to say, I’m not immune to the pessimism. However, I also like to ask what can go right in any scenario, and I do think a number of key tailwinds could lift specific stocks higher this year.
I think investors will need to be selective on this front. But there are certain names I think are poised for big upside, if certain factors align favourably.
Here are two growth stocks I think could have a nice rally in 2026 in such a scenario.
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Open Text
Open Text (TSX: OTEX) is a top Canadian software company that has seen some turbulence of late, to say the least.
This downdraft in the company’s share price follows larger moves across the software sector. To some degree, it makes sense, if we do see the levels of disruption many believe are possible with the rise of artificial intelligence.
That said, Open Text’s underlying fundamentals still tell a robust story. The company just crushed Q2 fiscal 2026 earnings, posting $1.13 of earnings per share versus analyst expectations of $1.01. That’s a solid beat, made even more impressive given it was driven by solid revenue of $1.3 billion, which also edged past forecasts. Analysts now project 2026 revenues to remain steady at $5.2 billion with EPS jumping 32% to $2.30. This is expected to be fueled by 18% cloud revenue growth in content management and robust 36.3% adjusted EBITDA margins.
The company’s strategic pivot via divestitures like eDOCS slashed debt, while also boosting flexibility for AI threat detection, cybersecurity expansions, and SaaS transitions. Those are key drivers as enterprise AI adoption surges into 2026.
Trading at a reasonable forward earnings multiple and providing plenty of capital return over time, Open Text is a top Canadian tech company I think investors may want to buy on this dip.
The Metals Company
Now, we come to my favourite small-cap pick of them all right now – The Metals Company (NASDAQ: TMC).
This Vancouver-based company boasts a lean pre-revenue structure primed for polymetallic nodule harvesting of nickel, cobalt, copper, and manganese. Importantly, these are critical battery metals exploding in demand, for which I expect to see very high demand for a long time. The rise of electrification and AI isn’t going away – if anything, those trends are accelerating.
Thus, this makes the company’s fundamental improvements even more impressive. Losses narrowed in recent quarters amid zero revenue, but fresh 2026 regulatory tailwinds abound. These include government backing and clarified international rules, de-risking commercialization timelines for offshore projects.
I think TMC’s fundamentals also highlight plenty of upside potential. Indeed, a $2.6 billion market cap reflects a speculative premium, yet with no debt overload. And ongoing equity raises should sustain the company’s ongoing R&D efforts heading into its commercialization period.
As EV and green tech tailwinds accelerate (think supply shortages), TMC’s nodule tech positions it as a low-cost disruptor, trading in a volatile fashion – but with 238% one-year gains signalling momentum before full-scale operations take hold.
