Most Canadian growth stocks have had an impressive run over the last six months. While 2024 started on shaky ground, with macroeconomic uncertainties and high interest rates weighing on the market, the landscape shifted when central banks in Canada and the U.S. began slashing interest rates. This recent policy shift gave much-needed relief for growth investors, sending many high-potential stocks soaring.
As we move into 2025, long-term investors may want to consider adding quality growth stocks with strong fundamentals and the potential for significant returns to their watch lists. In this article, we’ll highlight two Canadian growth stocks that stand out for their potential to thrive in 2025 and beyond, making them must-watch stock picks for Foolish investors.
Source: Getty Images
Aritzia stock
After rallying by 96% in 2024, Aritzia (TSX:ATZ) stock currently trades at $53.95 per share with a market cap of $6.1 billion. This recent rally in the Vancouver-based company’s share prices could mainly be attributed to its improving long-term growth fundamentals and expanding presence in the U.S. market, which is helping it post solid financial growth.
Now, let me give you a quick idea about the ongoing strength in its financials. In the first half (ended in August 2024) of its fiscal year 2025, Aritzia’s total revenue jumped by 11.8% YoY (year over year) to $1.1 billion. More importantly, the apparel designer and retailer’s adjusted earnings during the same period soared by 231% YoY to $0.43 per share.
The strong momentum behind Aritzia’s improving financial performance highlights its growth strategy and ability to adapt to changing market conditions. In the most recent quarter alone, its revenue surged by 15.3% YoY to $615.7 million with the help of a remarkable 24% increase in its U.S. market sales. In addition to its real estate expansion strategy, the increasing popularity of the company’s e-commerce platform has played an important role in driving this U.S. segment growth.
Moreover, Aritzia’s ambitious plans, including the launch of an enhanced website and new boutique openings, brighten its long-term growth outlook further, making its stock an attractive buy in 2025.
BlackBerry stock
Another top Canadian growth stock that has been in the spotlight of late is BlackBerry (TSX:BB). Notably, BB stock popped by over 23% in a single day on December 20 as its far better-than-expected quarterly financial results boosted investors’ confidence. As a result, it now trades at $5.27 per share with a market cap of $3.1 billion.
In the November 2024 quarter, BlackBerry reported impressive financial growth for its third fiscal quarter, making it a top stock pick for growth-focused investors in 2025. During the quarter, BlackBerry delivered $162 million in sales, exceeding prior guidance for both its cybersecurity and IoT (Internet of Things) segments. Notably, its IoT sales rose 13% sequentially in the latest quarter, with an 85% gross margin, clearly reflecting the growing demand for its QNX technology.
Meanwhile, BlackBerry’s cybersecurity segment saw revenue increase by 7% sequentially, driven by improved recurring revenue metrics and the recent sale of its Cylance unit to the American cybersecurity firm Arctic Wolf Networks. With positive free cash flow ahead of schedule, BlackBerry seems well-positioned for continued growth in 2025, making it a stock worth monitoring.
