Top Canadian Growth Stocks to Invest In

Growth stocks are companies that expand their revenue and earnings at a significantly faster rate than the average firm in their industry. Because they possess high potential for long-term upward trajectory, they can become a source of immense wealth—especially for investors who secure shares before a company truly hits its stride.

As we move into 2026, the Canadian growth landscape has entered a sophisticated new phase. While the broader S&P/TSX Composite Index delivered an impressive 21.7% total return in 2024, the growth-heavy information technology sector outperformed significantly, with some segments seeing gains of over 30%. Despite a more volatile 2025 marked by trade uncertainty and shifting interest rates, the “innovation economy” in Canada remains resilient. Emerging trends in artificial intelligence (AI) integration, clean technology, and industrial automation are creating a new generation of growth leaders that go far beyond the traditional tech sector.

Of course, the perennial challenge remains: which growth stocks are truly worthy long-term investments, and which are likely to fizzle out as market hype cools? In a 2026 market that favors capital efficiency over “growth at any cost,” separating the duds from the dynamite companies requires a closer look at sustainable business models and proven scalability. Let’s break down the essential characteristics of Canadian growth stocks and identify the most promising names for your portfolio today.

What Are Growth Stocks? 

Growth stocks are companies that are growing their revenues and earnings faster than most companies in their immediate industry or market sector. These companies typically gain immense momentum because they have an innovative idea, product, or service that no other business offers. 

In order to accelerate their expansion, growth stocks will often sacrifice profitability to grow as quickly as possible. That means they’ll reinvest profits in the business, rather than paying out dividends.

They’ll also have higher prices relative to the company’s earnings (or a high P/E ratio), which doesn’t typically scare investors, because they’re expecting higher earnings over the long run, regardless of what the company earns today. They may look expensive now, but 3, 5, even 10 years from now, today’s prices will look unbelievably low.

Volatility of Growth Stocks

Investing in growth stocks can feel exciting, often exhilarating, especially since most growth stock prices can be extremely volatile. When the company does better than expected, prices soar; when they disappoint, stock prices drop hard.

Likewise, during a bear market, growth stocks tend to take the hardest hit, as investors become increasingly uncertain about the company’s future. In contrast, growth stocks can soar during bull markets, when consumers have more disposable income and investors are willing to take risks.  

How Are Growth Stocks and Value Stocks Different? 

Value Stocks: The Bargain Hunters’ Choice

In a nutshell, value stocks are companies that are trading below the price most analysts believe the underlying company is worth. Essentially, they’re undervalued.

Many value stocks are battle-tested companies with long histories of performance. Whether due to a general market downturn or a temporary lack of investor excitement, these shares have fallen even though the business remains financially solid. They are effectively unadvertised bargains: you buy at a low price in the hope that the market will eventually recognize the company’s true value, rewarding you with a price rebound.

One of the biggest perks of value stocks is their consistent dividends. Because these are usually mature companies that aren’t aggressively expanding, they have excess cash to return to shareholders. For value investors, these dividends act as a “safety net,” providing a steady stream of passive income even if the stock price takes time to recover.

Growth Stocks: The Innovation Bet

In contrast, growth stocks are typically newer or rapidly expanding companies with immense upward potential. Unlike value stocks, many growth names trade far above their current earnings. This is because investors aren’t paying for what the company is doing today; they are betting on what the company will become tomorrow.

Investors are willing to pay a premium for these stocks because they expect the company to achieve its promise and disrupt its industry, leading to much larger valuations in the future.

Growth companies rarely pay dividends. Instead, they reinvest 100% of their profits back into the business to fund research, new technology, or market expansion. When you buy a growth stock, you are trading immediate cash flow (dividends) for the possibility of massive capital gains down the road.

Risk vs. Reward

Growth stocks are inherently riskier than value stocks. It is notoriously difficult to predict which “next big thing” will actually explode in value and which will falter. In a 2026 market where capital efficiency is highly prized, growth stocks can see rapid price drops if they fail to meet high expectations. Value stocks, meanwhile, tend to be more stable, though they carry the risk of being “value traps”—stocks that stay cheap because their industry is slowly declining.

What are some of the best Canadian growth stocks? 

You don’t need to look far to find exciting growth opportunities on the Canadian stock market. To give you an idea of what you should look for, here are six growth stocks you can find trading on the Toronto Stock Exchange.

Constellation Software

Constellation Software (TSX:CSU) is a premier Canadian technology conglomerate that excels in acquiring and managing vertical market software businesses. Following a landmark 2024 where revenues hit $10.07 billion (up 20%), the company has maintained its aggressive momentum into late 2025. For the first nine months of 2025, revenue grew another 15% to $8.45 billion, supported by a robust acquisition engine that deployed hundreds of millions in capital across niche software markets.

Strategically, 2025 marked a pivotal leadership transition as founder Mark Leonard stepped back for health reasons, appointing long-time COO Mark Miller as the new President and a member of the Board. This move ensures continuity for Constellation’s decentralized model, where independent operating groups like Volaris and Topicus continue to hunt for acquisitions globally.

Waste Connections

Waste Connections (TSX:WCN) is a premier North American waste management firm providing essential non-hazardous waste collection, transfer, and disposal services across the U.S. and Canada. The company completed a landmark year in 2024, deploying approximately $2.2 billion for 24 acquisitions (including a significant E&P waste platform in Western Canada) which added roughly $750 million in annualized revenue. While total 2024 revenue rose 11.2% to $8.92 billion, net income saw a temporary 19% decline to $618 million due to one-time impairments and the strategic early closure of specific landfill facilities.

As of late 2025, Waste Connections has successfully rebounded, with performance trending at the high end of its guidance. For the first nine months of 2025, revenue surged to $7.1 billion, fueled by strong core pricing and over $300 million in new year-to-date acquisitions. This performance drove a significant recovery in profitability, with net income rising to $818 million for the same period. Looking toward 2026, Waste Connections is positioned to surpass the $10 billion revenue milestone, supported by a growing portfolio of Renewable Natural Gas (RNG) projects that are beginning to contribute to its bottom line.

goeasy

goeasy (TSX:GSY) is a leading Canadian alternative financial services company that provides non-prime leasing and lending through its three core brands: easyfinancial, easyhome, and LendCare. By offering personal loans, lease-to-own financing for household goods, and point-of-sale financing for sectors like automotive and healthcare, goeasy serves over 1.6 million Canadians who are often underserved by traditional banks.

Following a record-breaking 2024 where revenue surged 22% to $1.52 billion, the company has continued its expansion into 2025. As of the third quarter of 2025, goeasy reported record quarterly revenue of $440 million, with its total gross consumer loan portfolio growing 24% year-over-year to reach $5.44 billion.

Despite a more challenging macroeconomic environment in 2025, goeasy remains highly profitable and committed to shareholder returns, marking 2025 as its 21st consecutive year of paying dividends and its 11th consecutive year of dividend increases. Its dividend yield currently sits at 4.6%.

Looking toward 2026 and 2027, the company is on track to meet its long-term targets of scaling its loan portfolio to between $7.35 billion and $7.75 billion, supported by a total funding capacity that has now expanded to approximately $2.3 billion.

Shopify

Shopify (TSX:SHOP) is the global leader in e-commerce infrastructure, providing businesses of all sizes with the tools to build, manage, and scale online and physical stores. By integrating payments, shipping, and fulfillment into a single “intelligent commerce” system, Shopify has moved beyond being just a toolkit to becoming the operating system for modern retail.

After a stellar 2024 that saw annual revenue climb 26% to $8.88 billion and gross merchandise volume (GMV) hit $292.3 billion, the company accelerated its pace in 2025. By the third quarter of 2025, Shopify reported a massive 32% year-over-year revenue surge to $2.84 billion, driven by the rapid adoption of its “Shop Pay” checkout and a growing roster of enterprise-level brands like Estée Lauder.

Entering 2026, Shopify is prioritizing operational efficiency alongside its hyper-growth. The company has now achieved nine consecutive quarters of double-digit free cash flow margins, reaching an 18% margin as of late 2025. This financial discipline is being paired with aggressive innovation in artificial intelligence (AI) through tools like “Sidekick,” which helps merchants automate back-office tasks and personalize customer experiences.

WELL Health

WELL Health (TSX:WELL) is Canada’s largest owner and operator of outpatient medical clinics and a leading provider of digital healthcare solutions across North America. The company has successfully pioneered an integrated care model that combines physical clinics with a massive telehealth and software-as-a-service (SaaS) ecosystem.

After reporting record 2024 revenues of $919.7 million, WELL shattered its own growth targets in 2025. By the third quarter of 2025, the company achieved its first-ever $1 billion revenue run-rate within a nine-month period, driven by a 56% year-over-year revenue surge to $364.6 million in Q3 alone.

The defining trend for WELL in 2026 is its transition from “growth at any cost” to significant profitability. In late 2025, the company reported a staggering 296% increase in Adjusted EBITDA, reaching $59.9 million for the quarter. Strategically, WELL is now leaning heavily into artificial intelligence, utilizing its 69% stake in HEALWELL AI to deploy clinical decision-support tools across its network of over 4,500 providers.

WELL is now preparing for a major 2026 milestone: the planned IPO of its SaaS subsidiary, WELLSTAR, which recently secured $62 million in private financing at a premium valuation. With a massive M&A pipeline and a goal to satisfy over 270,000 new yearly patient visits by early 2026, WELL remains the dominant “pure-play” growth stock in Canadian healthcare.

How to Choose Growth Stocks in Canada

Growth stocks aren’t always easy to spot. Sometimes they’re growing quietly behind the scenes, just one innovation away from taking off. Other times they’ve gained a large following, but they’re so new, it’s hard to determine if they have potential.

While it might be difficult to pick the next Shopify or Amazon, here’s a few things to look for. 

1. Pay attention to cultural trends

Growth stock companies often ride the waves of societal changes and megatrends. For instance, Amazon and Shopify wouldn’t have developed without a growing desire for better e-commerce experiences. And Netflix wouldn’t have gone anywhere if people hadn’t been frustrated with high cable prices and Blockbuster’s late fees. 

Some common trends you might want to look out for:

• Digital payments
• Green technology and renewable energy
• Cloud payments
• Cryptocurrency acceptance
• Streaming entertainment
• Remote work

If a new product or service has changed the way you traditionally do something—buying groceries, banking, or even communicating with colleagues in a work-from-home situation—the company behind them is worth looking into. 

2. Identify companies with strong competitive advantages

Companies that grow fast have products or services which few businesses can match. Some competitive advantages to look for:

• Network effects: The network effect happens when the value of a product or service improves as more and more people use it. Think of Slack. If two people in a company of 1,000 use Slack, its value diminishes. But if 898 people are using it, you better believe the remaining 102 won’t be far behind.

• High switching costs: Switching costs are what consumers pay—in dollars, time, and effort—to switch from one supplier to another. Take Shopify, for instance. Once a business starts using Shopify for its online operations, it becomes a major hassle to switch to one of Shopify’s competitors.

• Low-cost producers: Low-cost producers take items that consumers are unlikely to cut out—like bread or toothpaste—and produce them at a lower cost than similar companies. They might have a better way of making an item, or produce the item at such a large scale, they can afford to sell them at lower prices. Walmart and Aldi are good examples of low-cost producers.

3. Look for niche markets

The best growth stock companies emerge in uncharted markets where they have ample room to grow. Over time, these companies dominate their niche, until they merge into the broader market. 

If you notice a company that sells one product or service so well that they have a loyal ad growing customer base, take notice—you may have found your growth stock company. 

Should You Invest in Growth Stocks? 

Growth stocks are ideal for investors who have a long-term horizon and can stomach the volatility of these companies. Many growth stocks won’t hit their stride for 5, 10, or even 15 years or more.

If you’re okay waiting for a growth stock company to reach its full potential, and if you’re comfortable with growth stocks being sensitive to price swings, then growth stock investing might be right for you. 

On the other hand, if you’re near retirement, or you’re saving for a short-term goal, it’s probably not wise to buy shares in growth stocks. Though the returns can be immense, so can the losses. You might want to invest in something safer, such as blue chips, or companies with more stability.

For investors who don’t feel confident picking winners from emerging industries, you can always buy shares of growth-focused ETFs. One share of an exchange-traded fund will spread your money across numerous growth stock companies, which could help you balance the losses of one company with the gains of another.

Some common growth-focused ETFs in Canada include:

• BMO S&P/TSX Capped Composite Index ETF (TSX:ZCN)
• Vanguard Growth ETF Portfolio (TSX:VGRO)
• TD Global Technology Leaders Index ETF (TSX:TEC)