Growth stocks can grow their revenue and earnings faster than the broader industry, potentially delivering superior long-term returns. Their strong growth prospects often command premium valuations, as investors are willing to pay more for companies with significant future potential. However, these stocks also tend to carry greater risk, as their evolving business models and high expectations can make them more volatile. As a result, they are generally better suited to investors with higher risk tolerance and long-term investment horizons.
Investing in growth stocks through a Tax-Free Savings Account (TFSA) can further enhance their wealth-building potential, as eligible investment gains and income can grow tax-free. Against this backdrop, here are three growth stocks that could be excellent choices for long-term investors.
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Celestica
Celestica (TSX: CLS), which provides data centre infrastructure and advanced technology solutions, is my first pick. The greater adoption of artificial intelligence (AI) by businesses, governments, and individuals is driving hyperscalers to expand their AI-ready data centre infrastructure. This trend presents significant long-term growth opportunities for Celestica, which continues to develop innovative solutions and expand its production capabilities to strengthen its market position.
Meanwhile, Celestica raised its 2026 guidance following its second-quarter results. The company now expects revenue and adjusted earnings per share (EPS) to grow by approximately 65% and 87%, respectively, year over year. Management also expects growth to accelerate further in 2027 amid improvements in demand visibility, highlighting the company’s strong growth trajectory and making Celestica an attractive addition to a long-term TFSA portfolio.
Dollarama
Another growth stock that could be an excellent addition to your TFSA is Dollarama (TSX: DOL), which operates 1,712 stores across Canada and 410 in Australia. Its efficient direct-sourcing model and well-established logistics network help keep costs low, enabling the company to offer a broad range of products at attractive price points. This value-focused model has also allowed Dollarama to deliver resilient same-store sales despite challenging macroeconomic conditions.
The discount retailer is also continuing to expand its store network and aims to increase its footprint to 2,200 stores in Canada and 700 in Australia by the end of fiscal 2034. Meanwhile, Dollarama holds a 60.1% stake in Dollarcity, which operates 652 stores across five Latin American countries and plans to expand to 1,100 locations by the end of fiscal 2031. With multiple avenues for growth and an option to increase its stake in Dollarcity to 70%, Dollarama has significant long-term growth potential. I expect its strong financial performance to support further stock price appreciation, making it an attractive TFSA holding for long-term investors.
Savaria
My final pick for your TFSA is Savaria (TSX: SIS), which provides accessibility and mobility solutions. Earlier this month, the company reported a solid second-quarter performance, with revenue rising 8.4%, driven by organic growth and contributions from recent acquisitions. Expanding gross margins and improving operating efficiency also helped adjusted EPS increase 20.7% to $0.35.
Meanwhile, Savaria strengthened its balance sheet by reducing net debt from $191.5 million to $172.8 million. Its net debt-to-adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio also improved from 1.03 at the beginning of the year to 0.87. Furthermore, with $333.4 million in available liquidity at the end of the quarter, the company has ample financial flexibility to support its growth initiatives.
Savaria also stands to benefit from the aging global population, which is expanding the company’s addressable market for accessibility and mobility solutions. Its diversified manufacturing footprint provides additional flexibility to navigate an evolving geopolitical environment. At the same time, continued product innovation and strategic acquisitions could help expand its market reach and strengthen its competitive position.
Looking ahead, management expects revenue to grow at a 12% CAGR (compound annual growth rate) and reach $1.6 billion by 2030, while maintaining an adjusted EBITDA margin above 20%. Savaria also returns capital to shareholders through monthly dividend payments, with a forward yield of 1.9%. Given its attractive long-term growth prospects, strengthening balance sheet, and shareholder-friendly capital allocation, Savaria is an excellent growth stock to consider right now.
