Not each nice inventory appears to be like like a winner instantly. Among the greatest long-term performers spend time constructing sturdy fundamentals and momentum quietly earlier than taking off — and recognizing these early indicators may repay nicely in the long run.
Two Canadian shares that might be approaching that section are Aritzia (TSX:ATZ) and Excessive Liner Meals (TSX:HLF). Each corporations are displaying indicators of progress in several methods, making them value contemplating for 2026 and past.
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Aritzia inventory
Aritzia is a Vancouver-based trend retailer identified for its “On a regular basis Luxurious” attire and equipment. After rallying by 224% within the final yr, ATZ inventory presently trades at round $124 per share with a market cap of $14.5 billion.
Regardless of the current ups and downs in U.S.-Canada commerce relations, the corporate’s current monetary efficiency has been very sturdy. Within the third quarter of its fiscal 2026 (ended November 2025), Aritzia’s internet income reached a file US$1 billion, up round 43% YoY (yr over yr). This development was helped by a 34.3% improve in its comparable gross sales, reflecting sturdy demand throughout each on-line and bodily shops.
Aritzia’s digital enterprise has been a key driver as its e-commerce income jumped 58.2% YoY within the newest quarter to US$383 million, accounting for 36.8% of its complete income. On the similar time, the corporate’s gross revenue additionally jumped by practically 44% YoY to US$478.9 million, with margins enhancing barely to 46%.
The Canadian trend retailer plans to broaden its retail footprint with 12 new boutiques in america and two in Canada throughout fiscal 2026. These enlargement plans, coupled with the sturdy demand for its merchandise in its dwelling market in addition to america, may assist ATZ inventory proceed hovering.
Excessive Liner Meals inventory
Excessive Liner Meals, a high North American processor and marketer of frozen seafood merchandise, is one other Canadian inventory wherein I anticipate to see a breakout within the close to time period. HLF inventory presently trades at $14.35 per share with a market cap of $405.9 million. Over the past 12 months, it has declined by about 16%, which can current a possible turnaround alternative for long-term traders.
The corporate generates income by a variety of branded and private-label seafood merchandise bought throughout retail and foodservice channels in Canada and the U.S. market. Regardless of going through value pressures from tariffs, uncooked supplies, and promotions, Excessive Liner Meals posted a 15% improve in gross sales within the fourth quarter of 2025 to US$270.2 million. This development was backed by a 1.5% improve in quantity and a beneficial product combine. Nevertheless, gross revenue slipped barely to US$49.7 million attributable to margin strain.
To handle these challenges, the corporate is now specializing in innovation and effectivity. It not too long ago launched its Sea Delicacies Skillet Meals line, designed for fast, handy meals at dwelling. It has additionally carried out organizational adjustments, together with a workforce discount of about 9%, to enhance value management. These steps are anticipated to assist a return to YoY adjusted EBITDA development in fiscal 2026, which ought to assist its share worth recuperate sharply in 2026 and past.
Silly takeaway
Aritzia and Excessive Liner Meals are at totally different phases, however each present potential for additional development. Aritzia is already delivering sturdy momentum by digital enlargement and retailer development, whereas Excessive Liner Meals is working by a transition that might considerably enhance its profitability over time.
For traders prepared to take a long-term view, these Canadian shares might be value watching carefully as potential breakout candidates in 2026.
