In a well-diversified portfolio, experts usually recommend reserving some space for higher growth stocks in order to achieve greater diversification and total returns. In this article, I’ll discuss two high-growth potential Canadian picks that are already breaking out in 2026. And given their outlooks, there’s plenty of more upside to be had.
Of course, these higher return potential stocks also come with a higher risk profile. But even a small weighting in these stocks can uplift total returns significantly when the stocks break out. Let’s take a look at my Canadian picks.
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Ballard Power Systems
My first Canadian pick is a stock that I’ve been cautiously optimistic about for a few years now. The investment thesis is simple – Ballard Power Systems Inc. (TSX: BLDP) powers heavy duty transport vehicles with its high-performance fuel cells. These fuel cells provide clean power, deliver greater power, and have lower recharging requirements than batteries – and their costs are coming down quickly.
This has not gone unnoticed amongst bus and truck manufacturers, rail operators, and marine vessel builders seeking zero-emission power solutions. Year-to-date, this Canadian pick has rallied almost 120% as Ballard stock has seen increased demand and profitability metrics.
Revenue increased 26% in Ballard Power Systems stock’s latest quarter, to $19.4 million. This was driven by strong bus and rail markets. Also, gross margins increased 37 basis points to 14%, representing the third consecutive quarter of improvement. Finally, cash and earnings metrics also improved significantly.
Ballard Power Systems stock has also recently announced some major news, further confirming the progress that the company is making in its markets.
The first is an announcement confirming that Solaris Bus and Coach, a leading European bus manufacturer, has selected Ballard Power Systems as the fuel cell supplier for its next-generation hydrogen bus. The second announcement confirmed that Wrightbus, a leading UK-based bus manufacturer has selected Ballard’s fuel cells to power its third-generation double-decker bus.
Demand momentum, combined with Ballard Power System’s continued progress in improving efficiencies, has increased investor confidence. This is one of the Canadian picks to consider for strong long-term gains in 2026 and beyond.
Blackberry: Another Canadian pick with growing momentum
Another Canadian pick that’s seeing growing momentum is Blackberry Ltd. (TSX: BB). Year-to-date, Blackberry’s stock price has rallied almost 105% to $11.08. This has been driven by similar factors – strengthening demand and revenue, and increasing profitability.
In Blackberry stock’s latest quarter, total revenue increased 10% to $156 million. Blackberry’s QNX segment, which is its segment that provides embedded software that enables machine-to-machine connectivity, posted a 20% increase in revenue to $78.7 million. This was accompanied by strong royalty backlog, which hit $950 million, highlighting a multi-year revenue growth profile.
In addition to this strong quarter, Blackberry stock made some positive announcements subsequent to the quarter. These announcements highlight the growing acceptance of Blackberry and its place in both the embedded software industry, as well as the secure communications industry.
For example, just last week Blackberry stock announced that it achieved certification to handle the U.S. government’s most sensitive unclassified data. This is a positive testament to the quality of Blackberry’s secure communications solutions. As the need for security and mission-critical communications grow, Blackberry stock is well-positioned to benefit in 2026 and beyond.
The bottom line
The two Canadian picks discussed in this article, Ballard Power stock and Blackberry stock, are both recognized as leaders in their respective industries. They are both in new and emerging industries, with great potential but also risk. Recent announcements and results from both companies have served to lower their risk profiles and increase their potential returns profile.
Investors should therefore consider buying both stocks as part of their diversified portfolios to potentially boost their returns in 2026 and beyond.
