Canadian Stocks That Soared in Q3 2025

“Risk on!” defined the third quarter across Canadian equity markets, as niche and smaller-capitalization stocks surged to the top of performance tables. In Q3, many mid- and large-cap momentum names produced eye-catching gains: of the top 10 performers in that group, eight more than doubled in value during the 90 days to September 30.

The standout performer was data-centre operator Bitfarms Ltd., which posted a remarkable 247.8% return over the quarter, followed by cannabis producer Curaleaf Holdings Inc. with a 233% gain and uranium miner Energy Fuels Inc. at 171.5%. These returns underline how thematic drivers and sector-specific catalysts can propel certain stocks far beyond broader-market moves.

The benchmark S&P/TSX Composite—Canada’s main stock index—rose 11.8% over the quarter, delivering a 12.5% total return when dividends are included. By comparison, the U.S. S&P 500 returned 7.8% (8.1% total return) in the same period, highlighting a particularly strong quarter for Canadian equity momentum relative to U.S. large caps.

Among the 296 Canadian stocks with market values of $2 billion or more, the quarter’s top performers clustered in sectors that reward risk-taking: technology, cannabis, uranium, fast fashion and gold. One notable story was Cresco Labs Inc., which began Q3 trading at penny-stock levels before climbing into the top 10 performers—an example of the dramatic moves smaller-cap businesses can undergo in short spans.

Several factors helped drive the outsized gains for the quarter. Bitfarms benefitted from higher bitcoin prices and growing demand for data-centre capacity tied to the artificial intelligence (AI) boom; the company reported year-over-year revenue growth of 87% in its second quarter. Curaleaf’s stock was buoyed in part by its inclusion in the S&P/TSX Composite in September, becoming the only cannabis producer on the index—a change that typically prompts index-tracking funds to buy shares. Curaleaf also saw increased investor interest after social media posts by U.S. President Donald Trump that were interpreted as supportive of broader cannabis legalization and expanded medical coverage.

Energy Fuels of Lakewood, Colorado, has ridden the wave of higher uranium prices and policy emphasis from the U.S. on strengthening domestic nuclear energy supply chains. The company’s exposure to rare earth elements—materials critical to many advanced technologies and currently dominated by other global suppliers—adds another potential growth angle that investors watched closely during the quarter.

Below are Canada’s top 10 mid- to large-cap momentum stocks for Q3 2025, ranked by percentage gain from the June 30 close to the September 30 close:

Investors should note that a hot three-month run is not a reliable guarantee of continued gains. Smaller or unprofitable companies in volatile sectors can reverse sharply, and momentum strategies carry higher short-term risk. Academic research and market practitioners often find momentum to be a persistent factor in returns, but the optimal holding period is debated—some traders aim to capture momentum over a few months, while longer-term investors may maintain positions for a year or more to realize gains.

Because of the risk of buying stocks after substantial rallies, many investors layer momentum strategies with other approaches—value, growth, or dividend-focused analysis—to reduce the chance of overpaying for a short-term leader. Combining momentum with fundamental checks, position sizing and risk controls can help manage downside while still participating in sectors that show strong investor interest.

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