Not every great stock looks like a winner right away. Some of the biggest long-term performers spend time building strong fundamentals and momentum quietly before taking off — and spotting those early signs could pay off well in the long term.
Two Canadian stocks that could be approaching that phase are Aritzia (TSX:ATZ) and High Liner Foods (TSX:HLF). Both companies are showing signs of progress in different ways, making them worth considering for 2026 and beyond.
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Aritzia stock
Aritzia is a Vancouver-based fashion retailer known for its “Everyday Luxury” apparel and accessories. After rallying by 224% in the last year, ATZ stock currently trades at around $124 per share with a market cap of $14.5 billion.
Despite the recent ups and downs in U.S.-Canada trade relations, the company’s recent financial performance has been very strong. In the third quarter of its fiscal 2026 (ended November 2025), Aritzia’s net revenue reached a record US$1 billion, up around 43% YoY (year over year). This growth was helped by a 34.3% increase in its comparable sales, reflecting strong demand across both online and physical stores.
Aritzia’s digital business has been a key driver as its e-commerce revenue jumped 58.2% YoY in the latest quarter to US$383 million, accounting for 36.8% of its total revenue. At the same time, the company’s gross profit also jumped by nearly 44% YoY to US$478.9 million, with margins improving slightly to 46%.
The Canadian fashion retailer plans to expand its retail footprint with 12 new boutiques in the United States and two in Canada during fiscal 2026. These expansion plans, coupled with the strong demand for its products in its home market as well as the United States, could help ATZ stock continue soaring.
High Liner Foods stock
High Liner Foods, a top North American processor and marketer of frozen seafood products, is another Canadian stock in which I expect to see a breakout in the near term. HLF stock currently trades at $14.35 per share with a market cap of $405.9 million. Over the last 12 months, it has declined by about 16%, which may present a potential turnaround opportunity for long-term investors.
The company generates revenue through a range of branded and private-label seafood products sold across retail and foodservice channels in Canada and the U.S. market. Despite facing cost pressures from tariffs, raw materials, and promotions, High Liner Foods posted a 15% increase in sales in the fourth quarter of 2025 to US$270.2 million. This growth was backed by a 1.5% increase in volume and a favourable product mix. However, gross profit slipped slightly to US$49.7 million due to margin pressure.
To address these challenges, the company is now focusing on innovation and efficiency. It recently launched its Sea Cuisine Skillet Meals line, designed for quick, convenient meals at home. It has also implemented organizational changes, including a workforce reduction of about 9%, to improve cost control. These steps are expected to support a return to YoY adjusted EBITDA growth in fiscal 2026, which should help its share price recover sharply in 2026 and beyond.
Foolish takeaway
Aritzia and High Liner Foods are at different stages, but both show potential for further growth. Aritzia is already delivering strong momentum through digital expansion and store growth, while High Liner Foods is working through a transition that could significantly improve its profitability over time.
For investors willing to take a long-term view, these Canadian stocks could be worth watching closely as potential breakout candidates in 2026.
