Don't Miss AI's Third Wave
If you want to make a fortune by investing in stocks, you may want to focus on a long-term investing approach. While short-term economic uncertainties, trade tensions, and inflation risks continue to shake headlines, smart investors know that the real gains come from patience and picking quality companies early. That’s why, if I had $5,000 to invest right now, I’d skip the noise and go all-in on one exceptional growth stock.
In this article, I’ll reveal what I believe is the smartest TSX growth stock to buy right now and why it may be a standout performer for patient Canadian investors.
The smartest growth stock to buy right now
And the stock I’m talking about here, the one I’d put my $5,000 into without hesitation right now, is Aritzia (TSX:ATZ). Over the last year, ATZ stock has risen 36% to currently trade at $51.76 per share with a market cap of $6 billion.
A big part of what’s fueling Aritzia’s recent momentum is the strength of its U.S. operations. In the third quarter (ended November 2024) of its fiscal year 2025, the company’s revenue from the United States surged nearly 24% YoY (year over year) and accounted for over half of its total sales. That’s impressive for a homegrown Canadian brand.
The main reason behind this growth was a combination of opening eye-catching flagship boutiques in top locations, along with its focus on stronger digital engagement. Its e-commerce segment jumped 14% YoY last quarter due mainly to Aritzia’s smart digital marketing efforts that are driving more traffic and conversions.
On top of that, the Canadian apparel company isn’t just relying on one-time trends but building momentum across all channels. Even in Canada, where consumer spending has been under pressure lately, Aritzia’s boutiques are still delivering positive comparable sales growth. The company’s brand strength is resonating deeply with its core customers, especially in the U.S. market.
Solid financials and long-term growth prospects
What makes Aritzia even more appealing is how it’s backing this top-line growth with meaningful profitability improvements. The company’s adjusted net profit in the third quarter rose 57.5% YoY to $83 million, while its net profit margin expanded to 11.4% from 8.1% a year ago. For the quarter, Aritzia’s e-commerce segment made up around 33.2% of total revenue as its online sales grew 14% YoY to $242.1 million.
Even after higher capital investments, its strong financial growth helped the company post a free cash flow of $104 million in the third quarter.
Moreover, Aritzia is focusing on boosting initial margins, lowering markdowns, and trimming warehousing costs, all while investing in areas that could drive its future growth, like technology and store experiences. In addition to expanding its distribution network, the company is also continuing to open new boutiques and actively reposition others in the U.S. market.
Given its strong fundamental outlook, rising U.S. brand awareness, and consistent execution across both physical and digital channels, Aritzia stands out as a top Canadian stock to buy now and hold for decades.
