Investing in top Canadian growth stocks and holding them for the long term is a proven way to build wealth over time. A five-year investment horizon also gives you room to look beyond the market’s day-to-day ups and downs and helps capture the growth potential of strong businesses.
If you’re investing with the next five years in mind, it makes sense to look for stocks likely to benefit from long-term trends that could support their growth for years to come. It’s also worth watching fundamentally strong companies whose shares have recently fallen. A temporary pullback creates an opportunity to buy a solid business at a more reasonable price. Of course, diversification still matters. Spreading your money across sectors reduces risk.
Against this backdrop, here are two Canadian stocks to buy now and hold for the next five years.
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MDA Space
MDA Space (TSX: MDA) is a top Canadian growth stock I’d consider holding for the next five years. Shares of this space technology company have pulled back significantly from their 52-week high, giving investors a chance to gain exposure to the fast-growing global space industry.
Supporting my bullish outlook is MDA Space’s diversified revenue base. The company operates in satellite systems, robotics and space operations, and geointelligence, giving it exposure to several areas of the expanding space economy. Growing government spending on space and defence, along with rising demand for satellite connectivity and space-based data, provides additional tailwinds.
MDA Space also has a strong pipeline of future business. Its backlog was around $4 billion at the end of the second quarter. At the same time, its potential opportunity pipeline was about $40 billion. Repeat orders and larger contracts from existing customers could add further momentum.
MDA Space is also expanding through acquisitions. Its recent acquisition of CLS strengthens its Earth observation, satellite IoT, and geospatial capabilities. Meanwhile, the acquisition of Blue Canyon Technologies increases its presence in the U.S. defence market and adds a profitable operation.
While MDA Space stock may remain volatile in the near term, its backlog, diversified operations, and expansion strategy offer several potential drivers of long-term growth.
Celestica
Celestica (TSX: CLS) looks compelling at current levels. The stock has fallen more than 19% from its 52-week high, providing an attractive entry point for long-term investors. Celestica offers investors exposure to the growing demand for artificial intelligence (AI) infrastructure.
Much of Celestica’s growth is coming from its Connectivity & Cloud Solutions (CCS) business, which is benefiting from the rapid expansion of data centres and AI computing. In the second quarter, CCS revenue jumped 84% year over year and made up most of the company’s total revenue. Within the segment, communications revenue climbed 62%, supported by strong demand for 800G networking switches and continued adoption of 400G solutions. The enterprise business delivered even faster growth, with revenue rising 167%. This increase was driven largely by AI and machine-learning (ML) deployments for a major hyperscaler, along with a recovery in storage-related demand.
Looking ahead, the momentum will likely sustain. Communications growth should continue to be led by hyperscaler demand for 800G products, while Celestica is also beginning volume production for its 1.6-terabit programs. In the enterprise market, further expansion of hyperscaler AI and ML computing deployments, together with stronger storage demand, could provide additional growth.
Celestica’s Advanced Technology Solutions (ATS) segment also has room to expand, with demand for capital equipment remaining healthy and new programs moving toward production.
Overall, Celestica is a solid buy-and-hold stock for the next five years.
