Growth companies typically grow their financials faster than the industry average, offering investors the potential for higher returns. Given this strong growth potential, investors are often willing to pay a premium for such stocks, which tends to push their valuations higher. However, alongside these elevated valuations, the evolving nature of their businesses can make them relatively riskier, making them better suited for investors with a higher risk tolerance.
Meanwhile, global equity markets have become increasingly volatile amid the ongoing geopolitical tensions involving the United States, Israel, and Iran. Given this uncertain outlook, I expect these two growth stocks to outperform over the next 12 months.
Source: Getty Images
Dollarama
Dollarama (TSX: DOL) is a leading discount retailer that operates 1,683 stores in Canada and 401 in Australia. Its superior direct-sourcing business model and efficient logistics network enable the company to offer a wide range of consumer products at attractive price points, allowing it to deliver healthy same-store sales even in a challenging macroeconomic environment. In addition, the company continues to expand its store network and expects to increase its Canadian store count to 2,200 by the end of 2034 and its Australian footprint to 700 locations.
Given its capital-efficient business model, rapid sales ramp-up, favourable average payback period, and relatively low capital requirements for maintaining its store network, these expansion initiatives could meaningfully support growth in both its top and bottom lines.
Additionally, Dollarama holds a 60.1% stake in Dollarcity, which operates 684 stores across five Latin American countries. Dollarcity is also expanding its footprint and expects to grow its store count to 1,050 by the end of fiscal 2031. Furthermore, Dollarama has the option to increase its ownership in Dollarcity to 70% by the end of next year. As a result, I expect Dollarcity’s contribution to Dollarama’s net income to increase in the coming quarters, thereby supporting Dollarama’s overall financial growth and stock performance.
Secure Waste Infrastructure
Another growth stock that I believe is well-positioned amid the current uncertain outlook is Secure Waste Infrastructure (TSX: SES), an integrated waste management and energy infrastructure company with operations primarily in Western Canada and North Dakota. Despite a challenging macroeconomic environment, softer commodity prices, and headwinds in metals recycling, the company delivered a solid fourth-quarter performance last month.
During the quarter, the company commissioned a water-disposal facility in the Montney region and reopened an industrial waste-processing facility in Alberta. Overall, it deployed $138 million in organic growth capital in 2025, significantly exceeding its planned $75 million, driven by stronger customer demand and expanded project scopes. Supported by these investments, its revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by 9.7% and 15.4%, respectively, in the fourth quarter.
Secure also maintains a healthy financial position, with $597 million in liquidity and a total debt-to-adjusted EBITDA ratio of 2.1. In addition, its contracted organic growth projects, improving performance in the metals recycling segment, and continued stability across its core waste management and energy infrastructure network could support financial growth in the coming quarters.
The company also pays a quarterly dividend of $0.10 per share, yielding 1.98% on a forward basis. Moreover, it trades at a reasonable valuation, with its next-12-month price-to-earnings and price-to-sales multiples at 18.7 and 2.8, respectively, making it an attractive buy for growth-oriented investors in this uncertain outlook.
