Investing in high-quality growth stocks can help you generate above-average returns over time. Therefore, adding stocks with strong fundamentals and high growth potential could be a smart strategy to diversify your portfolio and enhance the overall returns.

One of the most appealing aspects of investing in growth stocks is that you don't need to make a large financial commitment to get started. In fact, with an investment as modest as $500, investors can tap into some of the top growth stocks in Canada.

Against this background, here are four Canadian stocks with strong growth prospects to buy and hold.

Growth stock #1

Celestica (TSX:CLS) is a top Canadian growth stock with promising potential. The company is strategically positioned to benefit from the surge in artificial intelligence (AI) investments, mainly through its focus on hardware platform solutions for AI/ML systems.

As demand for customizable AI silicon grows, Celestica's advanced networking switches, servers, and storage solutions are set to thrive, especially with rising data centre investments.

Beyond AI, the recovery in the Advanced Technology Solutions sector, including aerospace, defence, and industrial markets, will likely accelerate its growth and diversify its revenue streams. Celestica is optimistic about growth in its Industrial and Smart Energy segments in 2025, fueled by increased demand. Overall, with strong prospects across multiple industries, Celestica is poised for sustained growth.

Growth stock #2

Investors seeking high-quality growth stocks could also consider Aritzia (TSX:ATZ) for its ability to consistently deliver sales and earnings growth at a double-digit rate and generate higher returns over time. Shares of this clothing retailer have risen over 92% this year. The momentum is poised to sustain and on the back of stellar growth in its financials.

Notably, Aritzia's top line has grown at a compound annual growth rate (CAGR) of 19% since fiscal 2016. At the same time, its bottom line increased at a CAGR of 13%. The company will likely continue to deliver stellar financials, thanks to its exclusive mix of fashion brands, wide product offerings, and improvement in the supply chain.

Moreover, the company is expanding its store presence in prime retail spaces across Canada and the U.S., which will likely boost revenues, increase brand awareness, grow its customer base, and generate steady growth. Aritzia is also enhancing its omnichannel capabilities, improving operational efficiency, and reducing warehousing costs, which will likely boost its profitability and support its share price.

Growth stock #3

goeasy (TSX:GSY) is an ultimate growth stock to buy and hold. The financial services company is consistently growing its revenue and earnings at a double-digit rate. Thanks to its stellar financials, goeasy stock has gained substantially in value over the years and outperformed the Canadian benchmark index by a wide margin.

Further, it has enhanced its shareholders' value by increasing dividends for 10 consecutive years and has delivered a higher return on equity (ROE).

The subprime lender will benefit from high-quality loan originations and solid credit performance, which will drive its top and bottom lines at a solid double-digit rate. Further, goeasy's focus on credit adjustments, an improved product mix, and efficiency savings will enhance its margins and profitability. Thanks to its solid financials, goeasy will likely hike its future dividends, while its stock could deliver above-average returns. Moreover, the stock offers significant value near the current price levels and is trading cheap on valuation.

Growth stock #4

Hammond Power Solutions (TSX:HPS.A) is another compelling growth stock to buy now. This manufacturer of dry-type transformers and power-quality products is witnessing significant demand, led by advancements in AI and vehicle electrification.

The company's exposure to high-growth end markets such as data centers, electric vehicle (EV) charging, and renewable energy, as well as its established presence in industries like utilities, oil and gas, and mining, provide stability.

Hammond's focus on innovation, product expansion, and strategic acquisitions positions it for sustained growth. Further, with improved efficiency and a favourable product mix boosting profitability, Hammond Power is well-placed to enhance shareholder value and sustain its rally.