Growth stocks have the potential to expand their financials at a pace well above the industry average, enabling them to deliver superior returns over time. Given their higher return potential, investors are often willing to pay a premium for these stocks, which drives their valuations higher. However, due to the evolving nature of their business models and their relatively high valuations, these companies may carry a higher risk. Therefore, investors with a greater risk tolerance and a longer investment horizon may consider adding growth stocks to their portfolios to capture stronger long-term returns.
Against this backdrop, here are my two top picks that currently present attractive buying opportunities.
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Dollarama
Dollarama (TSX:DOL) is a discount retailer operating 1,683 stores in Canada and 401 in Australia. The company has adopted an efficient direct-sourcing model that eliminates intermediary costs while strengthening its bargaining power with suppliers. Combined with its streamlined logistics network, this model helps keep operating expenses low, enabling the retailer to offer a wide range of day-to-day products at attractive price points. Supported by this compelling value proposition, the company continues to generate healthy same-store sales growth regardless of the broader macroeconomic environment.
Moreover, the Montreal-based retailer continues to expand its footprint and expects to grow its store network to 2,200 locations in Canada and 700 in Australia by the end of fiscal 2034. Given its capital-efficient, growth-oriented business model, quick sales ramp-up, and relatively low capital requirements for store maintenance, these expansions could meaningfully boost both revenue and earnings.
Additionally, Dollarama holds a 60.1% stake in Dollarcity, which operates 684 stores across five Latin American countries. Dollarcity is also expanding rapidly and plans to grow its store network to 1,050 locations by the end of fiscal 2031. Dollarama also holds an option to increase its ownership stake to 70% by the end of next year. These growth initiatives could significantly strengthen Dollarama’s financial performance in the coming years, supporting further stock price appreciation.
Secure Waste Infrastructure
Secure Waste Infrastructure (TSX:SES) is an integrated waste management and energy infrastructure company operating primarily in Western Canada and North Dakota. Its waste management segment focuses on collecting, processing, recovering, recycling, and disposing of waste streams generated by energy and industrial clients. Meanwhile, its energy infrastructure segment is involved in the optimization, storage, and transportation of crude oil to end markets.
Last month, Secure reported strong fourth-quarter results, with revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increasing by 9.7% and 15.4%, respectively. The acquisition of a metals recycling business in Edmonton, Alberta, last year, the addition of a new water and waste processing facility, higher pricing across key service lines, and ongoing cost optimization initiatives across its network have all supported its financial growth.
Supported by strong cash flows, the company has returned $1.35 billion to shareholders over the past three years, including $1.05 billion through share repurchases and $307 million in dividends. Its balance sheet also remains solid, with a total debt-to-adjusted EBITDA ratio of 2.1.
Meanwhile, the company continues to expand its asset base. One fully contracted water-disposal facility in the Montney region began operations in the fourth quarter, and another is expected to enter service this quarter. In addition, the company plans to reopen its industrial waste processing facility in Alberta in the second quarter of this year. Alongside these initiatives, Secure expects to invest about $85 million in sustainable capital this year to expand its landfill capacity.
Amid these growth initiatives, the company expects its 2026 adjusted EBITDA to range between $520 million and $550 million, with the midpoint representing an increase of about 6.8% from the previous year. Given its solid growth outlook, I believe Secure’s financial performance will continue to rise, supporting further gains in its stock price.
Investors’ takeaway
Amid ongoing geopolitical tensions, global equity markets have become increasingly volatile. In this environment, these two defensive stocks with strong growth potential could be among the smartest buys right now.
