Two notable Canadian growth stocks that embody these characteristics are: MDA space (TSX:MDA) and Descartes Systems Group (TSX:DSG). One represents a high-octane growth story in space exploration and communications, while the other offers steady, mission-critical software growth. It looks like both TSX stocks will rise in 2026 and beyond. This is why they deserve a place in a forward-looking portfolio.
The down-to-earth value of MDA Space shares
MDA Space is down 47% from recent all-time highs and is a contrarian bet that could pay off very well if it recovers in 2026 and beyond. The satellite technology leader is a premier partner to the rapidly expanding global space industry, delivering everything from satellite systems and robotics to geo-intelligence solutions.
While an abrupt contract termination followed after his customer EchoStar Corporation‘s sale of key licenses to Elon Musk’s SpaceX triggered a sell-off in MDA shares, the potential revenue loss didn’t dent the spaceflight partner’s 2025 revenue and cash flow statements. Instead, the company reported strong 45% year-over-year revenue growth for the third quarter to $409.8 million.
MDA Space entered the fourth quarter with an impressive backlog of more than $4.4 billion, which could grow rapidly in 2026 due to the Canadian government’s multi-billion dollar military satellite communications deal with Telesatellite and MDA in December.
Despite MDA’s strong operating position, the stock has retreated significantly from its highs. This discrepancy between company performance represents a compelling contrarian investment argument for investors with a multi-year (long-term) investment horizon.
The latest military communications deal could be visible in MDA’s backlog in early 2026, sparking new investor interest in the growth stock as it joins a decades-long expansion of the space economy fueled by satellite constellations and global security needs. MDA’s beaten-down share price reflects a forward price-to-earnings-growth ratio (PIN) of 0.6, implying that the stock is undervalued relative to the company’s earnings growth potential.
Descartes Systems Group Stock: The Steady Growth Engine for Turbulent Trade Routes
Descartes Systems Group masters the complexity of global trade. As a leading provider of logistics and supply chain software, Descartes operates a vital global logistics network that helps customers navigate tariffs, sanctions and shipping volatility. It provides the vital software backbone that makes global trade more efficient and predictable, even as trade winds create tidal waves of uncertainty.
The company’s financials reflect the strength and consistency of its business model. Descartes has delivered double-digit revenue growth since 2022 and expanded its operating margins from 15% in 2019 to 28% in the past twelve months. The balance sheet is consistently strong, with no debt in the capital structure, and the software-as-a-service business generates strong free cash flow.
Shares of Descartes Systems are down about 25% year to date as revenue growth slowed from a 15% level to a forecast of 11% for 2026. Still, any surprises when the USMCA trade deal comes up for review next year could increase demand and package usage for Descartes Systems’ offering. The company is a serial buyer and new acquisitions could boost growth in 2026 and beyond, while tighter safety measures globally could boost shipping report volumes. Descartes charges per transaction, and sales could grow.
The Canadian tech stock’s steady, predictable growth makes Descartes stock a classic buy and hold candidate for investors looking for resilient exposure to the fundamental flows of global trade.
The silly bottom line
Shares of MDA Space and Descartes Systems Group represent two attractive, yet different, paths to potential growth. The stock market doesn’t always price in short-term value. For MDA, recent stock weakness contrasts with a booming business, while Descartes Systems’ strong multi-period performance still leaves room to climb to higher price targets as trade policy evolves as nationalistic and protective tendencies reshape trade routes during the Trump administration. If you’re building a portfolio for 2026 and beyond, both MDA Space and Descartes Systems Group TSX stocks are worth a closer look today.
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