3 Canadian Growth Stocks That Could Lead the Next Bull Market

It can be hard to know where to look during a bull market. This is when practically everything is doing well, which really means nothing is. Any stock that’s high flying might just as well turn around and drop once a bull market is over. And that’s why investors need to be careful.

Today, we’re going to look at growth stocks that should not only shine in a bull market, but far beyond. So let’s get right into three to watch on the TSX today.

CAE

CAE (TSX:CAE) is a Montreal-based aviation and defence technology company. It builds flight simulators and provides pilot training, aviation training services, and defence simulation solutions. CAE stock looks timely as global aviation still needs more pilots, airlines continue investing in training capacity, and defence spending remains a long-term tailwind.

CAE stock’s fiscal 2026 fourth-quarter results come out after market close on May 21, 2026. However, in Q3 fiscal 2026, CAE stock reported revenue of $1.3 billion, up 2.3% year over year. Net income came in at $108.9 million, though that was down 35% from the year before because margins narrowed.

Now it doesn’t look cheap, trading at 30 times earnings at writing, but growth stocks rarely look cheap before the market warms up. If airline training demand and defence orders remain strong, CAE stock could grow earnings into that valuation. So be sure to add this to your bull market watchlist.

WSP

WSP Global (TSX:WSP) is one of Canada’s best growth-compounding stories. The Montreal-based engineering and professional services firm works on transportation, buildings, water, environment, power, energy, and infrastructure projects around the world. Governments and companies hire WSP to design, manage, and advise on the hard stuff. This includes a recent US$3.3 billion all-cash deal to acquire TRC Companies, a U.S. power, energy, utility, and environmental consulting firm.

The latest earnings showed why investors still watch WSP closely. In Q1 2026, WSP reported strong profitability and a record backlog of $19.7 billion as of March 27, 2026. That backlog rose 18% over 12 months and represented about 11.5 months of revenue. The company also reaffirmed its 2026 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) outlook after the strong quarter.

Yet again, it’s not exactly cheap, though more reasonable than CAE stock. At writing, it trades at 26 times earnings, with a small 0.77% dividend yield. If WSP keeps converting backlog into earnings, that performance can make it look down-right valuable.

DOO

Finally, BRP (TSX:DOO) is the more cyclical growth pick. The Quebec-based company makes power sports products under brands such as Ski-Doo, Sea-Doo, Can-Am, Lynx, and Rotax. And in short, consumer discretionary names can rebound hard when confidence improves. Over the last year, BRP worked through dealer inventory pressure, weaker seasonal demand, and promotional activity, but its latest results showed a stronger finish.

In Q4 fiscal 2026, BRP revenue rose 16% year over year to $2.5 billion. Normalized EBITDA jumped 47.3% to $363.8 million, while normalized diluted earnings per share (EPS) rose to $2.21, up $1.16 from the year before. For fiscal 2026, revenue rose 6.8% to $8.4 billion, normalized EBITDA increased 4.3% to $1.1 billion, and net income surged 426.9% to $340.4 million.

Even better? BRP also guided fiscal 2027 revenue of roughly $8.9 billion to $9.15 billion, with normalized EPS of $5.50 to $6.50. All while trading at 16.5 times earnings, 0.68 times sales, and offering a 1.1% dividend yield. So while there is cyclical risk, BRP is also one stock that could move quickly.

Bottom line

CAE, WSP, and BRP offer three different ways to play the next bull market. Certainly, all three can stumble if economic growth cools again. But each has real revenue, a recognizable catalyst, and enough upside potential to deserve a spot on a growth investor’s 2026 watch list.

The post 3 Canadian Growth Stocks That Could Lead the Next Bull Market appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends BRP and WSP Global. The Motley Fool has a disclosure policy.