2 Growth Stocks I Expect to Surge Well Into This Year and Beyond

These TSX stocks will likely deliver solid returns as they are benefiting from strong demand for their products, technology, and services.

Key Points
  • The Canadian stock market rose about 35% in the past year, and despite potential volatility from geopolitical and economic uncertainty, certain growth stocks could surge higher.
  • CES Energy stock could continue surging due to strong demand for its advanced chemical solutions and a capital-light business model.
  • Celestica is positioned for continued growth as global spending on AI data-centre infrastructure rises, with a recent share pullback potentially offering a long-term buying opportunity.

Over the past year, the Canadian equity market has delivered an impressive performance, climbing roughly 35% even as global trade tensions and economic uncertainty lingered in the background. However, the road ahead poses challenges. Rising geopolitical tensions and persistent macroeconomic uncertainty could keep the market volatile. Nonetheless, a few Canadian growth stocks will likely deliver significant returns, outperforming the broader markets by a wide margin.

Notably, these Canadian companies will likely deliver durable growth as they benefit from strong demand for their products, technology, and services, giving them a clear runway for expansion. At the same time, solid execution and a relatively supportive operating backdrop will strengthen their growth trajectories and support their stock price.

Against this background, here are two growth stocks I expect to surge into this year and beyond.

dividends grow over time

Source: Getty Images

Growth stock #1: CES Energy

CES Energy (TSX: CEU) is one of the top growth stocks I expect to surge higher this year and beyond. It provides specialized consumable chemical solutions that help oil and gas producers enhance production, improve operational efficiency, and protect critical upstream infrastructure.

While many companies in the oil and gas ecosystem rely heavily on large capital investments, CES Energy operates with a comparatively capital-light model, enabling it to generate strong, consistent free cash flow. That operational advantage, combined with rising demand for its specialized products, has led to an impressive rally in its stock.

CES Energy’s shares have surged more than 142% over the past year and roughly 514% over the last three years. Yet it still has room to run. Demand for CES’ products continues to rise as upstream operators increase service intensity and shift toward higher-value chemical solutions. At the same time, strategic acquisitions have broadened the company’s capabilities, strengthening financial performance and supporting growth.

Global geopolitical tensions, including the ongoing Russia–Ukraine War and rising frictions in the Middle East, could sustain higher oil and gas development across North America, potentially boosting demand for CES Energy’s chemical solutions.

Further, with substantial U.S. revenue and vertically integrated North American operations, the company is relatively insulated from tariff pressures, providing it with additional resilience.

In short, CES Energy stock is poised to surge higher in 2026 and sustain the momentum in the years ahead.

Growth stock #2: Celestica

Celestica (TSX: CLS) is another stock set to surge in 2026 and beyond. The company specializes in data-centre infrastructure and advanced technology solutions, areas experiencing rapid investment as hyperscale cloud providers expand their AI capabilities.

Over the past three years, Celestica’s shares have surged roughly 1,789%, driven largely by powerful AI-driven demand. However, the stock has further upside potential. Notably, hyperscalers are expected to increase spending on AI infrastructure in 2026 and beyond, creating a favourable environment for companies supplying the hardware and systems powering these data centres.

Notably, Celestica stock has recently pulled back, declining more than 17.5% so far this year. This dip presents an entry point for long-term investors. Celestica continues to benefit from strong demand for its customized hardware platforms and integrated systems.

Management expects business momentum to strengthen, with revenue growth accelerating in 2026. Looking further ahead, a robust pipeline of opportunities could sustain expansion into 2027. With AI infrastructure spending rising globally, Celestica appears well-positioned to deliver attractive returns in the years ahead.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Celestica and CES Energy Solutions. The Motley Fool has a disclosure policy.

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