2 Canadian Stocks That Look Ready to Break Out This Year

These two Canadian stocks have already surged, but their strong fundamentals suggest they may still be getting started.

Key Points
  • Aritzia (TSX:ATZ) continues benefiting from strong U.S. expansion, digital growth, and rising customer demand.
  • BlackBerry (TSX:BB) is seeing improving financial performance as demand for cybersecurity and QNX software rises.
  • Both Canadian stocks have already posted massive gains, but could still have solid upside ahead.

It’s easy to assume a stock has already peaked after a massive rally. But sometimes the biggest winners continue climbing because the business itself keeps improving faster than investors expected.

Right now, two top Canadian stocks are showing signs that their growth stories may still be unfolding. One company continues to attract shoppers through strong brand momentum and rapid U.S. expansion, while the other is benefiting from rising demand for security software and automotive technology. Both businesses have already delivered huge gains over the last year, yet their improving fundamentals suggest there could still be more room to run. Let me explain why these TSX-listed growth stocks may continue standing out for the rest of the year and beyond.

stock chart

Source: Getty Images

Aritzia stock

Consumer spending has remained uneven in recent years due to the uncertain macroeconomic environment, but some retailers continue to find ways to attract shoppers and strengthen their brands. Aritzia (TSX: ATZ) has been one of the clearest examples of that trend.

This Canadian fashion retailer operates a growing portfolio of premium apparel brands, including Babaton, Wilfred, and TNA. Aritzia stock currently hovers around $150 per share, giving the company a market cap of roughly $17.5 billion. Over the last year alone, the stock has surged an incredible 120%.

This strong share price performance has been supported by Aritzia’s exceptional financial growth trend. In the fourth quarter of its fiscal year 2026 (ended in February), the company’s net revenue jumped 33% year-over-year (YoY) to a record $1.2 billion. Its comparable sales for the quarter climbed 28% YoY as strong customer demand and successful marketing efforts continued driving traffic to its stores.

The company’s U.S. expansion remains a major growth driver. Interestingly, Aritzia delivered 38% YoY revenue growth in the United States in the latest quarter while its home market revenue rose 24%. That momentum highlights the growing popularity of its Everyday Luxury brand positioning across North America.

Digital growth has also played an important role in the company’s success. Aritzia’s digital revenue surged by 29.2% YoY in the latest quarter to $488.3 million, accounting for more than 41% of total revenue.

Perhaps most importantly, Aritzia has already achieved its fiscal 2027 revenue target a year ahead of schedule. Now, the firm plans to unveil a new long-term strategic plan later this year, which could provide investors with another reason to stay optimistic about the company’s future growth potential.

BlackBerry stock

Another Canadian stock showing strong breakout potential is BlackBerry (TSX: BB), a tech company that has transformed itself into a software and cybersecurity business focused on enterprise solutions, embedded systems, and mission-critical communications.

After skyrocketing by more than 140% over the last three months alone, BlackBerry stock now trades at $11.65 per share with a market cap of about $6.8 billion.

Its recent financial performance suggests the rally is not simply driven by market excitement. In its fiscal year 2026 (ended in February), BlackBerry returned to overall top-line growth while reporting 10% YoY revenue growth in its latest quarter.

The company’s QNX segment has been a major driver. In the February quarter, its QNX revenue climbed 20% YoY to a record US$78.7 million, while its royalty backlog expanded to US$950 million. Growing demand for software-defined vehicles and embedded systems continues supporting that business.

BlackBerry’s Secure Communications division also returned to revenue growth as demand for digital sovereignty and cybersecurity solutions accelerated. Rising global defence spending has further strengthened that trend.

Financially, BlackBerry reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) growth of 71% YoY as improved margins and cost efficiencies helped expand profitability.

With growing exposure to cybersecurity, connected vehicles, and critical communications infrastructure, BlackBerry appears well-positioned to benefit from several long-term technology trends. Combined with improving financials, this Canadian stock could continue attracting investor attention.

Fool contributor Jitendra Parashar has positions in Aritzia and BlackBerry. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy.

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