Invest in These Unstoppable Canadian Stocks for the Next 5 Years
Alex Smith
1 month ago
2025 was a great year for many Canadian stocks, but it was a freight train for a few in particular. If you donât mind a pricey valuation, these stocks could keep on chugging for several years.
The Motley Fool founder, David Gardner, has often iterated, âWinners win.â If you want to keep winning with the best, here are two Canadian stocks that seem unstoppable today.
A Canadian retail stock soaring from strong momentum
Aritzia (TSX:ATZ) has to be at the top of this list. This Canadian stock has really defied the odds and delivered exceptional returns for long-term investors. It is up 103% in the past year, and 364% in the past five years.
However, it hasnât been a perfect hike up the mountain. This stock plummeted 30% in February last year after President Trump rolled out tariffs across the globe. It subsequently rose 178% to the end of the year.
The key has been Aritziaâs strong growth in the U.S. New flagship locations and expansions in key geographies have created a surge of seemingly insatiable demand. Today, its U.S. sales are now larger than its Canadian sales.
The exciting news is that it still has a long runway. The fashion retailer could still double or even triple its store count across the States. As its store count rises so too will its online sales.
This is even before we start talking about international expansion. That could provide another substantial leg of growth. Unfortunately, this anticipated growth has also driven Aritzia’s stock valuation to new elevations only surpassed in 2021.
One may be wise to wait for a pullback. However, if Aritzia continues to outperform expectations, there could still be more upside for this Canadian stock ahead.
An unlikely stock with huge long-term returns
TerraVest Industries (TSX:TVK) didnât quite have the year that Aritzia had. However, there is nothing wrong with a 48% gain for 2025 â and especially nothing wrong with a 937% gain over the past five years!
Like Aritzia, TerraVest had several substantial drawdowns last year. Yet, this Canadian stock surprised the market with better-than-expected fourth-quarter results. In December, TVK stock popped back just short of all-time highs.
TerraVest is perhaps not quite as exciting as Aritzia. It operates a mix of manufacturing businesses focused on tanks and trailers, boilers and heaters, and energy services.
None of these businesses on their own is that great. However, when consolidated and operated well, they have been delivering very strong results. That is a core reason why this stock is up so much. TerraVest intelligently deploys capital, operates its businesses with excellence, and earns consistently high returns on invested capital.
Like Aritzia, TerraVestâs stock is no longer cheap like it was a couple of years ago. Many complain that it trades far above other blue-chip manufacturing peers. That may be true. However, many of these donât have the capital allocation prowess to compound returns for years and maybe even decades ahead.
If you donât mind the steeper price today, this Canadian stock could continue to reward patient shareholders. Of course, it is best to buy on dips. However, even if you bought today and then held for a decade, you are likely to be very pleased with the end results.
The post Invest in These Unstoppable Canadian Stocks for the Next 5 Years appeared first on The Motley Fool Canada.
Should you invest $1,000 in TerraVest Industries right now?
Before you buy stock in TerraVest Industries, consider this:
The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 5 best stocks for investors to buy now⦠and TerraVest Industries wasnât one of them. The 5 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the âeBay of Latin Americaâ at the time of our recommendation, youâd have $20,568.17!*
Now, it’s worth noting Stock Advisor Canada’s total average return is 99%* – a market-crushing outperformance compared to 77%* for the S&P/TSX Composite Index. Don’t miss out on our top 5 list, available when you join Stock Advisor Canada.
See the 5 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }* Returns as of January 5th, 2026
More reading
- You Don’t Need a Ton of Money to Grow a Successful TFSA: Here Are 3 Ways to Get Started
- How to Turn the 2026 TFSA Contribution Into $70,000 (or More)
- Top Canadian Stocks to Buy With $5,000 in 2026
- If I Could Only Buy 3 Stocks in the Last Month of 2025, Iâd Pick These
- 2 Magnificent Canadian Stocks Ready to Surge Into 2026
Fool contributor Robin Brown has positions in Aritzia and TerraVest Industries. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends TerraVest Industries. The Motley Fool has a disclosure policy.
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