2 Stocks I’d Buy for a Year-End Breakout

These two stocks are strong candidates for a year-end breakout following their strong quarterly results.

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Key Points

  • The S&P/TSX topped 30,000 and Aritzia (TSX:ATZ) and BlackBerry (TSX:BB) are flagged as likely year‑end breakout candidates after recent strong quarterly results.
  • Aritzia shows outsized retail momentum (Q2 revenue +32%, net income +263%, guiding ~21–22% FY revenue growth), while BlackBerry posted a profit turnaround (Q2 net income US$13.3M vs. a loss a year ago) supporting further upside.
  • 5 stocks our experts like better than [Aritzia] >

The S&P/TSX Composite Index breached the 30,000-point milestone at the end of September 2025, setting the stage for an even higher record close to start the fourth quarter. Market analysts believe the positive trend and bull run will continue.

For individual stocks, Aritzia (TSX:ATZ) and BlackBerry (TSX:BB) are prime candidates for a year-end breakout. Both companies recently reported strong quarterly results that could trigger a price surge.

A growth story

Aritzia is gaining attention for its impressive growth in the clothing retail industry. The $9.5 billion fashion retailer, fresh off a quarter of strong earnings, has established a solid footing in Canada and the U.S., particularly with upscale customers.  

In Q2 fiscal 2026 (three months ending August 31, 2025), net revenue and net income rose 32% and 263% year-over-year to $812 million and $66.3 million, respectively. As of this writing, ATZ trades at $91.42 per share, marking a nearly 15% jump since the earnings release on October 9. The retail stock is up 71% year-to-date.

Jennifer Wong, CEO of Aritzia, said, “Our performance was fueled by robust demand for our high-quality, beautiful products, including an outstanding response to our Fall launch, as well as our strong inventory position, strategic marketing investments and new boutique openings.”

Ms. Wong notes the exceptional strength in the US, including e-commerce. “The momentum in our business, our proven operating model, and our healthy balance sheet give us confidence in our path forward as we capitalize on our vast opportunity for growth in the United States and beyond,” she added.

Aritzia expects contributions from its retail expansion or new boutiques and boutique repositions in Canada and the US in fiscal 2026. For the full fiscal year, the company projects net revenue growth of approximately 21% to 22% or between $3.3 billion and $3.35 billion compared to fiscal 2025.

Earnings surprise

Investors need more convincing to take a position in BlackBerry. However, now might be the best time to load up, given the latest earnings results. The $3.7 billion company, formerly a smartphone maker, provides intelligent software and services to governments and enterprises.  

The tech stock is up 17.6% year-to-date and has significantly outperformed the TSX in the last 12 months (+80.9% versus +23%). If you invest today, the share price is $6.42. The uptick suggests positive investor sentiment driven by improving business fundamentals and strong growth prospects across multiple businesses.

In the three months ending August 31, 2025, revenue increased 2.7% to US$129.6 million compared to Q2 fiscal 2025. Net income reached US$13.3 million, compared to a US$19.7 million net loss a year ago. According to John J. Giamatteo, CEO of BlackBerry, the revenue growth and expanded gross margins during the quarter ensured strong profitability. It was also a “Rule of 40” quarter for the QNX division.

Besides QNX, formerly the Internet-of-Things, BlackBerry’s two other divisions are Secure Communications and Licensing. For the full fiscal year, the revenue guidance is between US$519 million and US$541 million.

Buy signals

Aritzia and BlackBerry are on investors’ radars following their respective quarterly results. However, the retail stock has a clearer, immediate path to a breakout as the holiday season draws near. BlackBerry could rise too, because of its visible long-term potential.

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

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