Investing in the stock market has never been easy, but recent months have seen it become increasingly challenging. Investing in growth stocks can be quite risky in a volatile market, but the TSX has seen several growth stocks generate impressive returns this year. Canadians with a low tolerance for risk might want to steer clear of growth stocks. For those with faith that this year’s rally might not be over yet, there are stocks trading on the TSX that might be worth investing in right now.
Despite the ongoing uncertainty, there are companies with strong growth prospects, more market opportunities, and the kind of durable demand that indicate the ability to deliver outsized returns. Today, I will discuss two Canadian stocks that exhibit the ability to skyrocket in the next 12 months.
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Celestica
Celestica Inc. (TSX:CLS) is a $64.8 billion market-cap tech stock, operating in the supply chain industry. It provides supply chain solutions to manufacturers and service providers worldwide. More recently, it has also entered the Artificial Intelligence (AI) space, with data centre solutions needed to meet the rising demand for AI.
AI-related spending by hyperscalers has been a key growth driver for the business, and it will continue to be through 2026 and beyond. The company expects its revenue to increase by over $6.5 billion this year and grow further in the next. Even if share prices might seem high right now, its growth prospects support this stock’s rally this year.
As of this writing, Celestica stock trades for $563.61 per share. Up by almost 230% from its 52-week low, Celestica stock might have far more upside in store for its investors.
Aritzia
Aritzia Inc. (TSX:ATZ) seems like an unlikely stock to discuss when talking about growth stocks, given the number of AI stocks in the market. However, it warrants a better look from growth-focused investors. The $19.9 billion market-cap company engages in designing apparel and accessories that it sells through various exclusive fashion brands under its belt.
The consumer discretionary space might not seem like a market set for growth amid the economic uncertainty these days, but Aritzia has shown an ability to do well regardless. The traffic across its physical and digital stores remains high, and it has a steady flow of new products in its lineup. As Aritzia continues expanding its footprint and deepening customer relationships, it looks well-positioned to provide growth for years to come.
As of this writing, ATZ stock trades for $173.20 per share. At current levels, it is up by 165.6%, and it does not look like it will slow down any time soon.
Foolish takeaway
While near-term challenges may persist, Celestica’s exposure to high-growth markets well-positions it to deliver substantial growth in the next few years. Aritzia might not be in a high-growth industry considering broader market trends, but it has displayed an ability to perform well under pressure. With several growth drivers in place, it can be a good investment to consider.
