Motley Fool founder David Gardner has often said, “Winners win.” If you want to keep winning with the best, here are two Canadian stocks that seem unstoppable today.
A Canadian retail stock is rising on strong momentum
Aritzia (TSX:ATZ) should be at the top of this list. This Canadian stock has truly defied expectations 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 was not a perfect walk up the mountain. This stock plummeted 30% in February last year, after President Trump imposed tariffs around the world. It then rose 178% through the end of the year.
The key was Aritzia’s strong growth in the US. New flagship locations and expansions in key regions have created a wave of seemingly insatiable demand. Today, sales in the US are greater than sales in Canada.
The exciting news is that it still has a long runway. The fashion retailer could double or even triple its number of stores in the United States. As the number of stores increases, online sales also increase.
This is before we even start talking about international expansion. That could result in a new substantial growth step. Unfortunately, this expected growth has also driven Aritzia’s stock valuation to new heights that were not surpassed until 2021.
It may be wise to wait for a relapse. However, if Aritzia continues to exceed expectations, there could still be more upside potential for this Canadian stock.
An unlikely stock with huge long-term returns
TerraVest Industries (TSX:TVK) didn’t quite have the year that Aritzia had. However, there is nothing wrong with a 48% gain for 2025 – and especially nothing wrong with a 937% profit the past five years!
Like Aritzia, TerraVest had a number of substantial withdrawals last year. Still, this Canadian stock surprised the market with better-than-expected fourth-quarter results. In December, TVK shares fell just below all-time highs.
TerraVest may not be as exciting as Aritzia. It operates a mix of manufacturing companies focusing on tanks and trailers, boilers and heaters, and energy services.
None of these companies on their own are that great. However, when consolidated and properly exploited, they have delivered very strong results. That’s a big reason why this stock has risen so much. TerraVest deploys capital intelligently, executes its operations with excellence, and achieves consistently high returns on invested capital.
Like Aritzia, TerraVest shares are no longer cheap like they were a few years ago. Many complain that the company trades much better than other leading manufacturers. That may be true. However, many of these companies do not have the ability to allocate capital to grow returns for years and perhaps even decades.
If you don’t mind today’s higher price, this Canadian stock could continue to reward patient shareholders. Of course, it is best to buy on dips. But even if you buy today and hold on to it for ten years, you’ll likely be very pleased with the end results.
#Invest #unstoppable #Canadian #stocks #years