These 2 Canadian Growth Stocks Are Worth a Good Look

Two Canadian stocks, both high-growth, high-return investments deserve serious consideration.

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Key Points

  • The TSX hit fresh records, closing above 30,000 for the first time on Sept. 30, 2025 and finishing at 30,471.68 on Oct. 3 after five straight all‑time highs, with analysts expecting more gains.
  • Momentum stocks 5N Plus (VNP) and MDA Space (MDA) are top picks—VNP is up ~138% YTD with strong H1 results and lower net debt, while MDA has nearly doubled in a year and sits on a US$4.6B backlog.
  • 5 stocks our experts like better than [5N Plus] >

The Toronto Stock Exchange closed above 30,000 for the first time on September 30, 2025. It ended at 30,471.68 points on October 3. This was the index’s fifth consecutive all-time high in as many days. Many market analysts expect Canada’s largest stock exchange to break more records.

If you’re entering the market this month, 5N Plus (TSX:VNP) and MDA Space (TSX:MDA) demand attention. This pair of Canadian growth stocks could potentially reward you with massive capital gains.

Strong momentum

The top-performing sector so far is the basic materials sector. It leads with a 79.2% positive return, although 5N Plus is especially strong, up 138.2% year-to-date. Over the last three years, VNP delivered 548% dividend-adjusted share price performance. As a result, it ranked 7th on the 2025 TSX30 List.

TSX30 is an annual flagship program that showcases Canadian stocks that have delivered exceptional performance. 5N Plus reported that its market capitalization increased by 553% during the same period. If you invest today, the share price is $17.58. 

The $1.5 billion company produces specialty semiconductors and high-purity performance materials for use in critical industries globally. 5N Plus is focused on and has deep expertise in Research and Development (R&D). It has R&D operations in Canada, Germany, and the United States.

5N Plus reported solid financial performance in the first half of 2025. In the six months ending June 30, 2025, net earnings reached US$24.8 million, a 240% jump from the same period in 2024. Revenue grew 32% year-over-year to US$184.2 million. Net debt declined 26% to US$74.3 million from December 31, 2024.

According to its President and CEO, Gervais Jacques, it was the company’s strongest first-half revenues in a decade. He added that 2025 could be a landmark year based on the record results and accelerating demand in strategic sectors in which it operates. Jacques anticipates heightened demand for Specialty Semiconductors in the terrestrial renewable energy and space solar power markets.

Expect 5N Plus to continue solidifying its leadership position in key end markets through year-end 2025, with the likelihood of extending into 2026.

Booming space industry

Increasing government funding and contracts are driving the space industry forward. Canada’s MDA Space – a pioneer in robotics, satellite systems, and geo-intelligence – is well-positioned to capitalize on strong customer demand and robust market activity. The global space economy is projected to grow to US$944 billion by 2033 from US$613 billion in 2024.

Like 5N Plus, the aerospace stock is a 2025 TSX30 winner (rank 15). At $35.34 per share, the trailing one-year price return and total return in three years are 99.7%-plus and 387.5%-plus, respectively. The $4.3 billion company develops advanced space technologies and has completed over 450 space missions, including several mission firsts.

In the first half of 2025, net income rose 142.3% year-over-year to $60.1 million. CEO Mike Greenley says the $4.6 billion backlog at the end of Q2 provides revenue visibility. He adds that converting pipeline opportunities into contracts is ongoing. The CEO assures investors that MDA Space is making good progress on its long-term strategy.

Know your exposure

Take your pick between 5N Plus and MDA Space. Whichever stock you choose, you gain exposure to high-growth industries.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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