The Canadian equity markets have become increasingly volatile in recent weeks, driven by ongoing tensions in the Middle East and a surge in oil and natural gas prices. Investors are concerned that persistently high energy prices could fuel inflation, potentially delaying or even halting central banks’ plans to cut interest rates. Reflecting this uncertainty, the S&P/TSX Composite Index has declined by more than 4% from its recent highs.
Despite this short-term turbulence, long-term investors should remain focused on fundamentals rather than market noise. Periods of volatility often create opportunities to accumulate high-quality growth stocks at more attractive valuations. These companies typically grow revenue and earnings faster than their peers, positioning them to deliver strong long-term returns.
However, this growth potential often comes at a premium, with elevated valuations and evolving business models introducing higher risk. As a result, such stocks are ideal for investors with greater risk-taking abilities and a longer investment horizon. With that in mind, here are two of my top growth stock picks in the current environment.
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Celestica
Celestica (TSX: CLS) provides critical infrastructure that enables hyperscalers to build data centres, while maintaining a strong presence across the aerospace and defence, industrial, healthcare technology, and capital equipment markets. Amid the rapid adoption of artificial intelligence (AI), hyperscalers are significantly ramping up investments in AI-ready data centres, creating a compelling long-term growth opportunity for Celestica.
To capitalize on this trend, the company is reinforcing its competitive position through innovation and capacity expansion. It is expanding its manufacturing footprint in the United States to meet rising demand for next-generation AI infrastructure. These initiatives, expected to be completed next year, should support the deployment of advanced data centre solutions that power future AI applications.
Celestica is also increasing its capital investment to align its manufacturing capabilities with growing demand. The company expects to invest approximately $1 billion over this year, representing about 6% of its projected revenue, to enhance its global footprint and strengthen its capabilities in high-reliability manufacturing, advanced design engineering, and end-to-end supply chain solutions. In addition, strategic partnerships with Google and AMD further bolster its long-term growth outlook.
Financially, management expects strong momentum, projecting revenue and adjusted earnings per share (EPS) growth of 37.2% and 44.6%, respectively, this year. Despite these solid fundamentals, the stock has declined around 20% amid recent market volatility. It currently trades at a reasonable next-12-month price-to-sales multiple of 1.9, making it an attractive opportunity for long-term growth investors.
5N Plus
Another compelling growth stock for long-term investors is 5N Plus (TSX: VNP), a producer of specialty semiconductors and performance materials used across renewable energy, security, space, pharmaceutical, medical imaging, and industrial applications.
The global shift toward clean energy, combined with the rapid expansion of space-based projects, satellite communications, and advanced security systems, is creating strong long-term tailwinds for the company. Rising demand across these high-growth sectors positions 5N Plus well for sustained expansion.
To capitalize on this momentum, the company is strengthening its production capabilities. It plans to increase solar cell production capacity by 25% at its AZUR SPACE Solar Power facility this year, supporting growing demand for high-efficiency solar solutions for space and terrestrial applications.
Additionally, the Montreal-based firm is enhancing its recycling and refining capabilities for germanium – a critical material used in solar cell supply chains and advanced optics – at its St. George, Utah facility. Backed by a US$18.1 million grant from the U.S. government, this initiative should improve supply security and expand margins over time.
Despite these solid growth prospects, the stock has declined by around 10% from its 52-week high amid broader market weakness. This pullback offers a potentially attractive entry point for long-term investors.
