2 Canadian Growth Stocks That Could Make a Big Move in the Next Year

By Adam Othman at The Motley Fool Canada

Stock markets worldwide have become increasingly volatile in 2026. Barely four months into it, this year has seen plenty of instability, especially since the US and Israel started a war with Iran, and it responded by closing off the Strait of Hormuz.

The ongoing tensions in the Middle East are driving up crude oil and natural gas prices. Investors are worried that higher energy prices will fuel further inflation. These developments have yet to impact the Bank of Canada’s (BoC) interest rate cuts so far. However, central banks might consider delaying or halting plans to cut interest rates.

The performance of the S&P/TSX Composite Index is reflecting this uncertainty. As of this writing, the benchmark index for the Canadian stock market is down by around 4% from its all-time high. Despite the short-term panic, investors with a long investment horizon have opportunities to make the most of this market environment.

Periods of market volatility often create opportunities to invest in high-quality growth stocks at heavily discounted share prices. While high-growth also implies a greater degree of risk, the right bets on growth stocks can be highly profitable for investors.

High-growth-focused investments are better for investors with higher risk tolerances and well-balanced portfolios needing a growth injection. If you are one such investor, here are two picks you can consider for your self-directed investment portfolio.

Celestica

Celestica Inc. (TSX:CLS) is a $46.8 billion market-cap tech stock, with an underlying business that is increasingly critical today. The growing demand for Artificial Intelligence (AI) integration in everyday tech is increasing the need for data centre infrastructure. Celestica is one of the companies providing that capability to hyperscalers requiring significant infrastructure.

The need for AI-ready data centres and a few companies with the ability to fulfill demand means Celestica has a compelling growth runway for years to come. The company is increasing capital expenditure to meet the growing demand, and it expects a solid return on its investments in this space. While the global economic environment will likely lead to more short-term volatility, the long-term prospects look solid. It can be an excellent investment to consider.

5N Plus

5N Plus Inc. (TSX:VNP) is another TSX tech stock that warrants attention from growth-focused investors with a long investment horizon. The $2.8 billion market-cap company is a leading producer of specialty semiconductors and performance materials that are used across several industries, from the renewable energy to space to medical imaging, security, and more.

A growing shift to cleaner energy and an accelerated expansion of space-related projects mean companies like 5N Plus have strong tailwinds that can fill its sails for years to come. The company has solid long-term growth prospects. Despite the strong demand, the stock trades at a 10.8% discount from its 52-week high. It might be a good investment to capture potentially outsized gains once the dust settles.

Foolish takeaway

Before you invest, it’s important to remember that higher growth potential often comes with a higher degree of capital risk. If you are still new to investing in the stock market, I would advise building up a well-balanced portfolio with a greater focus on blue-chip stocks to kick things off. Once you have a sizeable portfolio that can offset losses from high-risk investments, it might be safer to make the riskier bets.

The post 2 Canadian Growth Stocks That Could Make a Big Move in the Next Year appeared first on The Motley Fool Canada.

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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.

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