The TSX Composite has had a formidable 2024, gaining 20% 12 months up to now and buying and selling comfortably above the psychologically vital 25,000 stage. Even with a slight pullback in December, traders’ optimism stays excessive as declining rates of interest and easing inflation proceed to offer a supportive setting for equities.
Among the 12 months’s top-performing TSX shares like Celestica (TSX:CLS), CES Power Options (TSX:CEU), and MDA House (TSX:MDA) have led this surge, delivering outstanding returns of as much as 264% to traders. However the important thing query now’s: may these top-performing shares of 2024 preserve their momentum into 2025? On this article, we’ll revisit 2024’s high three TSX gainers and analyze their basic development prospects, which ought to allow you to perceive whether or not they’re nonetheless worthy of a spot in your portfolio as we head into the brand new 12 months.
Celestica inventory: Up 264%
After skyrocketing by 264% up to now in 2024, Celestica is at the moment the best-performing TSX Composite element. This rally has taken CLS inventory worth to $141.07 per share, extending its market cap to $16.4 billion.
The latest soar in Celestica’s share costs has been pushed by strong demand, notably in its Connectivity & Cloud Options phase, which noticed a 42% YoY (year-over-year) income improve within the third quarter of 2024. Different optimistic elements like sturdy execution and operational enhancements additionally boosted its adjusted quarterly earnings up by 60% YoY to US$1.04 per share, which continued to surpass Avenue analysts’ expectations.
Trying forward, Celestica’s steerage for 2025 initiatives additional development, with its annual gross sales anticipated to hit US$10.4 billion and earnings climbing to US$4.42 per share. If the corporate maintains its sturdy execution and capitalizes on strong demand in high-growth sectors, CLS inventory has the potential to maintain its uptrend in 2025.
CES Power inventory
Equally, the shares of Calgary-headquartered chemical options firm CES Power have zoomed up by almost 175% 12 months up to now to at the moment commerce at $9.47 per share with a market cap of $2.1 billion. With this, CEU inventory has surged roughly 640% because the finish of 2020.
Over the past 12 months, CES Power’s complete income rose 5.9% YoY to $2.3 billion. Extra importantly, its adjusted earnings throughout the identical interval jumped by 48.2% to $0.83 per share due primarily to sturdy development in its North American operations. In latest quarters, the corporate has continued to learn from rising service depth and its superior chemical options, resulting in improved profitability.
With beneficial vitality sector traits and a shareholder-friendly method, together with dividends and buybacks, I wouldn’t be shocked if CES Power continues to construct on this momentum into 2025.
MDA House inventory
One other high performer on the TSX this 12 months has been MDA House, which has surged by 146% 12 months up to now, reaching $28.38 per share and taking its market cap to $3.4 billion.
Even with the continued macroeconomic uncertainties, MDA’s stable monetary development traits and give attention to the fast-growing world area business have helped it outperform the broader market this 12 months. Trying forward, MDA House may proceed to keep up this sturdy momentum into 2025 and past.
With a file backlog of $4.6 billion on the finish of September 2024, the corporate has sturdy income visibility to assist continued development. Furthermore, its investments in superior manufacturing services and new applied sciences may assist it profit from rising world demand for satellite tv for pc methods and area robotics, which ought to drive its inventory greater.
