Despite several economic uncertainties in the last few years, the Canadian stock market has been on an upward trajectory, recently posting a fresh all-time high. This uptrend showcases the underlying strong fundamentals and resilience of the Canadian economy, offering attractive growth opportunities for investors. These are some of the key reasons why long-term investors are always on the lookout for stocks with solid growth potential that could deliver some eye-popping returns over time or even make millionaires out of ordinary investors.
In this article, I'll highlight two such TSX stocks that have the potential to witness strong gains in the years to come, making them really attractive to buy right now.
Aritzia stock
Aritzia (TSX:ATZ) is the first stock that I would like to highlight for its potential to outperform the TSX Composite benchmark by a wide margin over the coming years. This Vancouver-headquartered fashion designer and retailer has impressive fundamentals that could help it post strong financial growth, underpinned by its trendy product offerings and strong brand loyalty. ATZ stock currently has a market cap of $5 billion as it trades at $44.68 per share with around 63% year-to-date gains.
In the first quarter of its fiscal year 2025 (ended in May), Aritzia's sales surged by 7.8% YoY (year over year) to $498.6 million with the help of strong performance in the U.S. market and new boutique openings. Interestingly, it was the third consecutive quarter when its sales growth rate witnessed YoY improvements. In addition, improved operational efficiency and margins more than doubled the company's adjusted quarterly earnings from a year ago to $0.22 per share, beating Street analysts' expectations of $0.16 per share.
It is important to note that Aritzia has been expanding its presence not only across Canada but also into the U.S. market, where it has seen considerable success in the post-pandemic era. Besides its U.S. market expansion plans and the ongoing digital initiatives, I expect Aritzia's focus on inventory optimization to improve profitability further in the coming years, which should help its share prices continue rallying.
Constellation Software stock
Constellation Software (TSX:CSU) could be another excellent growth stock to buy in Canada right now. This Toronto-headquartered tech firm primarily focuses on providing software and services to private and public sector organizations globally, with the United States, the United Kingdom, and Canada being some of its biggest geographical markets. After rallying by nearly 29% so far in 2024, CSU stock currently trades at $4,225.25 per share with a market cap of $89.5 billion.
Notably, this high-growth tech stock has delivered an outstanding 1,466% positive return in the last 10 years. Strong demand for Constellation's tech solutions and its strong financial growth trends could be two main reasons for this share price appreciation. To give you a rough idea about that, its annual earnings jumped by 125.4% in the five years between 2018 and 2023.
In the first half of 2024, the company's adjusted earnings rose by nearly 11% YoY to US$33.56 per share. As it remains focused on making new quality acquisitions to accelerate financial growth, CSU stock could continue soaring in the long run, which could even help investors become millionaires if they remain invested for the long term.