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.

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.

The post 2 Stocks I’d Buy for a Year-End Breakout appeared first on The Motley Fool Canada.

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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.

If you’re looking for an incredible growth stock in the Canadian stock market, you may want to look beyond the usual software, banking, and energy stocks.

I’d look up – quite literally. If I had to choose an under-the-radar Canadian growth stock that could be much bigger 10 years from now, MDA Space (TSX: MDA) would be high on my list. This company is quietly building a Canadian technology business around space tech that is becoming increasingly important to governments and commercial customers across the globe. Still, its stock has fallen significantly from its 52-week high. That volatility gives long-term investors a much more interesting price to buy it.

In this article, I’ll explain why MDA could be the hidden gem of the decade and why its recent pullback makes it look undervalued.

MDA Space stock

In short, this Toronto-based space technology firm operates across three main areas, including satellite systems, robotics and space operations, and geointelligence. Its tech solutions support communications satellites, Earth observation, space exploration, and other critical space infrastructure.

At the time of writing, MDA stock traded at $40.84 per share with a market cap of $6.6 billion. Its shares are down roughly 28% over the last three months and remain nearly 40% below their 52-week high.

That steep decline in recent quarters looks much less concerning when viewed over a longer time frame, as MDA stock is still up about 271% in three years. Even after that long-term run, the company’s latest results suggest its growth story is far from over.

Growth remains strong

One of the key factors that make MDA stock look like the hidden gem of the decade is the strength of its underlying business growth as it continues to show solid business momentum.

In the second quarter, the Canadian space technology firm’s revenue climbed nearly 34% year-over-year (YoY) to $499 million. Higher work volumes across all three business areas backed that growth.

Its satellite systems revenue jumped nearly 45% YoY in the latest quarter, mainly because of higher work volumes on the Telesat Lightspeed program. At the same time, MDA’s robotics and space operations segment revenue also rose about 13% to nearly $100 million as work on Canadarm3 increased. Similarly, its geointelligence revenue advanced nearly 20% from a year ago, helped by higher volumes from new programs.

With this, the company’s adjusted net profit improved nearly 13% YoY to $51.8 million in the latest quarter. Adding to the optimism, MDA finished the quarter with a net cash position of $152.8 million and total liquidity of $1.1 billion.

Why this long-term growth opportunity looks attractive

Meanwhile, MDA is continuing to build the foundation for long-term growth. The company ended the June quarter with a solid $4 billion backlog as new bookings exceeded the revenue converted from backlog.

Another positive is MDA’s expanding satellite manufacturing capacity. Its new high-volume facility in Montreal is now operating. In August, the first eight Globalstar replenishment satellites developed, integrated, and tested by MDA were successfully launched. The remaining nine satellites were in the final stages of integration.

Moreover, MDA is preparing its MDA CHORUS Earth observation constellation for a planned late-2026 launch, with commercial operations expected to begin in early 2027. This system is designed to serve government and commercial customers with advanced radar imaging capabilities.

Foolish takeaway

Clearly, MDA Space already has strong revenue growth, a multibillion-dollar backlog, new production capacity, and several long-term growth initiatives underway. Its fundamental strengths could help it keep converting backlog into revenue while expanding its satellite, defence, robotics, and Earth observation businesses. That’s why I look at it as an amazing long-term growth opportunity hiding behind a significant share-price pullback.

The post This Canadian Stock Could Be the Hidden Gem of the Decade appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in MDA Space. The Motley Fool recommends MDA Space. The Motley Fool has a disclosure policy.

For years, the Canadian defence industry was a quiet corner of the stock market. But with global geopolitical tensions escalating and Ottawa under mounting pressure to meet NATO’s defence spending threshold, Canada’s Department of National Defence is ramping up capital allocations. Huge multi-year commitments to Arctic sovereignty, maritime security, and NORAD modernization are opening up a generational growth runway for well-positioned Canadian defence stocks.

However, defence stock investors face a fresh challenge in 2026: trade wars.

With rising trade protectionism and shifting political dynamics across the border, Canadian defence companies heavily dependent on exporting finished goods into U.S. prime contractor supply chains could face margin compression or trade headwinds.

The most promising investment returns for long-term investors could lie in Canadian defence stocks that combine strong exposure to expanding global defence budgets with direct trade insulation – whether through locked-in Canadian government contracts, direct European NATO exposure, or smart “in-country” U.S. manufacturing footprints.

Here are three top Canadian defence stocks that fit this stock selection criteria today.

Buy the dip on Kraken Robotics stock

Canadian investors looking for hyper-growth in high-tech defence, subsea domain awareness is one of the most critical frontiers – and Kraken Robotics (TSXV: PNG) is a global market leader with a growing addressable market.

Kraken specializes in synthetic aperture sonar (SAS), subsea robotics, and acoustic batteries used for mine countermeasures, anti-submarine warfare, and critical seabed infrastructure protection. As underwater pipelines, cables, and maritime borders face increased security threats, navies worldwide are scrambling to upgrade their subsea surveillance capabilities.

Why should you buy Kraken Robotics stock now? Kraken stock gives Canadian investors pure-play exposure to subsea NATO modernization without high reliance on cross-border U.S. trade channels. The defence stock’s revenue base is well-diversified outside the U.S. Revenue from across North America comprised 35.8% of total sales during the first half of 2026.

Kraken Robotics’s recently closed acquisition of the Covelya Group may add growth momentum. Sales may double over the next 12 months, and the business may break into sustainable profitability and grow operating cash flow in 2027.

Following a drop during the dilutive acquisition of Covelya, Kraken Robotics stock trades at a forward P/E of 31. A forward price-earnings-to-growth (PEG) ratio of 0.4 implies the Canadian defence stock could be underpriced given its earnings growth potential.

MDA Space

Canadian sovereign defence treats space as a national security frontier today. MDA Space (TSX: MDA) is Canada’s premier space technology contractor behind the RADARSAT Constellation Mission, which provides 24/7 surveillance of Canada’s vast Arctic landmass, maritime approaches, and northern borders. The space exploration and defence stock remains a critical contractor as Canada prioritizes Arctic sovereignty and NORAD modernization in 2026.

Why buy MDA stock right now? MDA Space offers investors revenue and earnings stability through sovereign government backlogs, and tight commercial orders, making it a low-risk, anchor holding for a Canadian defence stock portfolio.

Revenue increased by 34% year-over-year during the second quarter. Looking forward, annual sales may surge by 50% over the next year, while earnings may rebound strongly to exceed a recent three-year growth rate above 22.5%.

Meanwhile, a forward P/E of 21 and a PEG ratio of 0.8 appear to imply MDA stock could be undervalued given its earning potential as its order backlog gains growth momentum in 2026.

MDA Space stock generated 67.8% of its revenue from Canada and 26.3% of sales were from U.S. customers during the first half of 2026. European revenue is growing.

Firan Technology Group

Canadian investors seeking a strong compounder with a shrewd hedge against U.S. trade barriers should find Firan Technology Group (TSX: FTG) a hidden gem in the Canadian aerospace and defence sector.

FTG manufactures high-reliability printed circuit boards (PCBs), illuminated cockpit panels, and electronic assemblies for military aircraft, helicopters, and defence platforms globally.

What makes FTG uniquely positioned in a protectionist trade environment is its manufacturing strategy. Rather than shipping everything across the border, FTG operates specialized manufacturing plants in the United States and in Canada. This allows FTG to fulfill U.S. defence contracts “In-America for America” and bypass cross-border tariffs, while using its Canadian operations to serve domestic and international defence programs.

Most noteworthy, FTG stock employs an accretive acquisitions-led growth strategy. It has a stellar track record of acquiring smaller aerospace electronics manufacturers at attractive valuations and integrating them to boost its earnings per share, while maintaining a strong balance sheet.

Up 73% year-to-date, FTG stock could be a profitable momentum trade at a forward P/E of 22.

The post 3 Top Canadian Defence Stocks to Buy Right Now appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Firan Technology Group and Kraken Robotics. The Motley Fool recommends MDA Space. The Motley Fool has a disclosure policy.