2 Stocks I’d Buy for a Year-End Breakout

These two top Canadian growth stocks are delivering strong business growth, making their stocks worth watching as 2026 enters its final stretch.

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Key Points
  • Shopify’s recent share-price weakness contrasts sharply with its 34% YoY revenue growth and improving free cash flow.
  • Celestica’s revenue surged 62% YoY in the latest quarter as strong customer demand continued to fuel growth.
  • Both companies have encouraging near-term outlooks that could support a potential year-end breakout.

As macroeconomic uncertainties, inflationary pressures, and geopolitical tensions dampen market sentiment in 2026, I wouldn’t blame investors for being more careful with Canadian growth stocks. But I also wouldn’t wait until every uncertainty disappears before buying them.

Keeping that in mind, two technology stocks look especially interesting to me right now, despite their stocks taking very different paths in recent months. Let me highlight these two TSX-listed tech stocks you can buy today for their potential to deliver a strong year-end breakout.

Runner on the start line

Source: Getty Images

Shopify stock

After spending much of 2026 under pressure, Shopify (TSX: SHOP) could be setting up for a stronger finish if its impressive revenue and cash flow momentum keep winning investors back. Shares of this Ottawa-based commerce platform giant currently trade close to $185 per share, giving it a market cap of $238 billion. Despite the broader market rally, its shares have slipped 16% so far in 2026, making it look even more attractive to buy on the dip.

In the June quarter, the company’s revenue surged 34% year-over-year (YoY) to US$3.6 billion, while its gross merchandise volume climbed 32% YoY to US$115.6 billion. Shopify’s merchant solutions revenue was even stronger, jumping 37% YoY to US$2.8 billion.

More importantly, Shopify is turning that growth into stronger profits and cash flow, as its operating income soared 68% YoY in the latest quarter.

I expect its financial growth to remain strong through year-end, with the company projecting a free cash flow margin in the high-teens to low-twenties range. Along with that, the tech giant continues to focus on artificial intelligence (AI) to expand what merchants can accomplish through its platform.

Despite its recent share-price weakness, Shopify clearly has several factors working in its favour. If the company maintains its strong operating momentum, SHOP stock could be an attractive buy ahead of a potential breakout into year-end.

Celestica stock

Unlike Shopify, Celestica (TSX: CLS) doesn’t need a comeback to break out. Its business is already firing on all cylinders, and rising forecasts could keep its stock moving strongly higher through year-end.

This Toronto-based firm mainly provides manufacturing, supply chain, and hardware platform solutions, with significant exposure to AI data centre infrastructure and cloud markets.

Following a 35% rally over the last year, Celestica stock now trades at $454.60 per share with a market cap of $57.2 billion.

In the second quarter, the tech manufacturer’s revenue soared 62% YoY, while adjusted earnings jumped about 83% to US$2.54 per share. The company attributed its better-than-expected results to stronger customer demand and solid operational execution.

The biggest boost came from Celestica’s connectivity and cloud solutions segment, where its revenue surged 84% YoY. Stronger-than-anticipated operating leverage also helped its adjusted earnings exceed the high end of management’s guidance.

Beyond 2026, Celestica expects its 2027 revenue growth rate to accelerate beyond the 65% growth anticipated this year, supported by strong customer demand and new program wins.

With demand visibility improving and earnings expectations moving higher, CLS looks well positioned heading into the final months of 2026. That great mix makes Celestica another attractive stock I’d buy for a potential year-end breakout.

Fool contributor Jitendra Parashar has positions in Celestica and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.

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