Invest in These Unstoppable Canadian Stocks for the Next 5 Years
Alex Smith
1 week ago
With the TSX Index up 4% in 2026 and 29% in 2025, many Canadian stocks have been having an unstoppable run in the past few years. While many are likely overheated here, there are plenty of stocks that could still deliver unstoppable long-term returns. Here are three Canadian stocks that appear unstoppable for the five years ahead.
A long runway for this Canadian retail stock
Aritzia (TSX:ATZ) has been on a rampage ever since the pandemic. Its stock is up 73% over the past year and 326% in the past five years.
Now, that has not come without any volatility. Aritzia has had two plus-45% drawdowns and one 60% drawdown in the past five years. Yet, none of these setbacks have held the stock back over the longer term.
Aritzia just delivered a banner quarter. Revenues rose 43% to $1 billion. Net income soared 87.5% to $138.9 million. The company has opened 13 new boutiques in 2025 and vastly expanded its exposure in the U.S. American sales now eclipse its Canadian sales.
Management believes it could more than double its current U.S. store count, so that should continue to be a growth driver. That is even before it contemplates international expansion for the future. With $620 million of spare cash on the balance sheet, it certainly has the fire power to keep pushing its growth strategy.
The biggest limitation for Aritzia is that its valuation today has risen considerably. It is trading with a forward price-to-earnings (P/E) ratio of 32, whereas its five year-average price-to-earnings (P/E) ratio sits at 27. You may have to wait for the stock to pullback. However, if it does, it is probably a good time to add the stock.
A soaring Canadian small-cap stock
Firan Technologies (TSX:FTG) only has a market cap of $380 million. However, this Canadian stock has been on a roll over the past several years. Its stock is up 105% in the past year and 561% over the past five years.
There still could be more ahead for this company. Firan provides circuit boards, cockpit components, and aftermarket parts to the aerospace industry. Commercial airlines are desperate for new, efficient airplanes. It has created a massive backlog for new planes.
That along with rising defence aircraft demand has been supporting solid growth for Firan in the past few years. Self-help initiatives like smart acquisitions and production efficiencies have expanded its market and customer exposure.
With strong performance, its stock valuation has risen considerably. Yet, this Canadian stock still trades at a discount to other peers, so there could still be upside ahead.
A diversified business with income and growth
Exchange Income Corp. (TSX:EIF) has delivered a major break out year in 2025. Its stock is up 77.5% in the past year and 155% in the past five years.
Exchange is a leading provider of air services to Canadaâs northern regions. The recent Canadian North acquisition further solidifies that position. Rising concerns about arctic sovereignty and arctic resources could lead to more development in the region. Long-term that bodes favourably for Exchangeâs businesses.
Exchange is projecting mid-teens growth in 2026. It could do even better if it earns some major defence contracts in the year. While you wait, Exchange stock earns a 2.9% dividend yield. It has a history of growing its dividend quite regularly, so you get to see your income compound as well.
The post Invest in These Unstoppable Canadian Stocks for the Next 5 Years appeared first on The Motley Fool Canada.
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More reading
- If I Could Only Buy 3 Stocks in 2026, Iâd Pick These
- The Absolute Best Canadian Stocks to Buy and Hold Forever in a TFSA
- 1 Canadian Stock Ready to Rise in 2026
- The Perfect TFSA Stocks for Generous Monthly Payouts
- These Canadian Stocks Have Serious Growth Potential in 2026
Fool contributor Robin Brown has positions in Aritzia and Firan Technology. The Motley Fool has positions in and recommends Aritzia and Firan Technology Group. The Motley Fool has a disclosure policy.
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