If you want two Canadian stocks that look ready to surge in 2026, I think First Quantum Minerals (TSX:FM) and Knight Therapeutics (TSX:GUD) should be part of your watchlist.
Both companies walked shareholders through strong full-year results at their recent annual meetings. Both are paying down debt, growing the core business, and lining up catalysts for the months ahead.
I have watched plenty of Canadian companies promise a turnaround and never deliver. These two are doing the opposite. I am bullish on each, and I will spend the rest of this piece backing up that call.
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Why copper makes First Quantum a top 2026 stock to watch
Copper is the metal that wires the modern world, including power grids, electric vehicles, data centres, and the broader shift toward electrification.
When that demand rises, low-cost copper miners tend to win. That is the long-term tailwind for this large-cap copper mining stock.
First Quantum is a Vancouver-based miner that met its 2025 copper production target of 396,000 tonnes, while gold and nickel both topped revised guidance.
The business generated US$2.1 billion in operating cash flow and US$1.7 billion in EBITDA (earnings before interest, tax, depreciation, and amortization) last year and cut its net debt by US$338 million.
The biggest win was the Kansanshi S3 expansion in Zambia. The project declared commercial production in December 2025.
By the first quarter of 2026, the S3 circuit was running 25% above its design capacity, which is rare, as most large mining projects struggle to even hit their design rate.
First Quantum signed a US$1 billion gold stream deal with Royal Gold and pushed its debt maturities out to 2029.
In Panama, the company won approval to process stockpiled ore at the idled Cobre Panama mine, which could reopen a major source of cash if a durable deal with the government holds.
The Canadian mining stock is projected to end 2028 with free cash flow of US$2.7 billion. If the TSX stock is priced at 15 times forward FCF, it could surge roughly 90% within the next 20 months.
The bull case for this TSX stock
Knight Therapeutics is a specialty pharmaceutical company focused on Canada and Latin America. Its model is simple to describe and hard to copy.
Knight licenses or buys drugs already approved in the U.S. or Europe, then handles approvals, pricing, and sales across its own markets. Knight operates a low-risk business model, making it a top buy in 2026.
In 2025, it reported record revenue of $452 million, record EBITDA of $73 million, and record operating cash flow of $69 million. It grew sales by 22% year over year, marking the 12th straight year of record revenue.
Knight closed two acquisitions, Paladin and Sumitomo, that added more than 45 products and over $80 million in annual sales.
Newly launched drugs are already taking off.
- XCOPRI, an epilepsy treatment, grew 182% in the second half of the year.
- ORGOVYX grew 117% after the acquisition, the company said.
Knight ended 2025 with $95 million in cash and marketable securities against just under $70 million of debt. For 2026, management guided to revenue of $490 million to $510 million, which would be yet another record.
Knight is the only scaled drug platform that spans both Canada and Latin America. Bay Street estimates revenue to surge to $600 million in 2030. Comparatively, free cash flow is projected to expand from $41.2 million in 2026 to $76.6 million in 2030.
The bottom line for Canadian investors
First Quantum offers leverage to a copper market that the world increasingly needs. Knight offers steady, repeatable growth from a proven playbook.
I rarely find two stocks with this mix of momentum, stronger balance sheets, and clear 2026 catalysts.
