The TSX Composite has had a powerful 2024, gaining 20% 12 months up to now and buying and selling comfortably above the psychologically essential 25,000 stage. Even with a slight pullback in December, buyers’ optimism stays excessive as declining rates of interest and easing inflation proceed to offer a supportive surroundings for equities.
A few of the 12 months’s top-performing TSX shares like Celestica (TSX:CLS), CES Power Options (TSX:CEU), and MDA Area (TSX:MDA) have led this surge, delivering outstanding returns of as much as 264% to buyers. However the important thing query now could be: may these top-performing shares of 2024 keep their momentum into 2025? On this article, we’ll revisit 2024’s high three TSX gainers and analyze their basic progress prospects, which ought to enable 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% to this point in 2024, Celestica is presently the best-performing TSX Composite part. This rally has taken CLS inventory value to $141.07 per share, extending its market cap to $16.4 billion.
The current bounce in Celestica’s share costs has been pushed by strong demand, significantly in its Connectivity & Cloud Options phase, which noticed a 42% YoY (year-over-year) income enhance 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 Road analysts’ expectations.
Wanting forward, Celestica’s steering for 2025 initiatives additional progress, 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 practically 175% 12 months up to now to presently 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.
During the last 12 months, CES Power’s whole 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 progress in its North American operations. In current quarters, the corporate has continued to learn from rising service depth and its superior chemical options, resulting in improved profitability.
With beneficial vitality sector developments and a shareholder-friendly strategy, together with dividends and buybacks, I wouldn’t be shocked if CES Power continues to construct on this momentum into 2025.
MDA Area inventory
One other high performer on the TSX this 12 months has been MDA Area, 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 continuing macroeconomic uncertainties, MDA’s stable monetary progress developments and concentrate on the fast-growing world area business have helped it outperform the broader market this 12 months. Wanting forward, MDA Area may proceed to take care of this sturdy momentum into 2025 and past.
With a document backlog of $4.6 billion on the finish of September 2024, the corporate has sturdy income visibility to help continued progress. Furthermore, its investments in superior manufacturing amenities and new applied sciences may assist it profit from rising world demand for satellite tv for pc programs and area robotics, which ought to drive its inventory greater.
