2 TSX Stocks That Could Grow Your Portfolio Over the Next Decade

Canadian investors looking to grow their portfolio should look to buy TSX stocks like ATS Automation Tooling Systems Inc. (TSX:ATA).

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published August 28, 2022 9:30 am EDT

This new decade has confronted Canadian investors with big challenges and even bigger opportunities. The March 2020 market pullback that emerged out of the beginning of the COVID-19 pandemic was a fantastic buy-the-dip moment. North American markets now sit in an uncertain period as the odds of a recession have increase for Canada and the United States.

Today, I want to look at two TSX stocks that could provide big growth for your portfolio over the next decade. Let’s dive in.

This TSX stock can soar with the automation trend

ATS Automation (TSX:ATA) is a Cambridge-based company that provides automation solutions to a global client base. Shares of this TSX stock have plunged 16% in 2022 as of early morning trading on August 22. That has pushed the stock into negative territory in the year-over-year period.

Investors should be eager to get in on this fast-growing space. Market researcher Fortune Business Insights released a report on the future of industrial automation earlier this year. It estimated that the global industrial automation market was valued at US$191 billion in 2021. Fortune Business Insights predicts that this market will rise to US$395 billion by 2029. That would represent a compound annual growth rate (CAGR) of 9.8% over the forecast period.

The company unveiled its first-quarter fiscal 2023 earnings on August 10. It delivered revenue growth of 19% to a record $610 million. ATS Automation was bolstered by its improved position in strategic markets as well as the impact of recent acquisitions. Meanwhile, the company posted adjusted earnings of $87.5 million, or $0.64 adjusted basic earnings per share — up 33% from the previous year. Moreover, its Order Backlog climbed 24% year over year to $1.55 billion.

Shares of this TSX stock currently possess a price-to-earnings (P/E) ratio of 29. That puts ATS Automation in favourable value territory compared to its industry peers. The company is on track for strong earnings growth going forward. This is a stock that is worth holding for the long term.

Here’s another TSX stock that will grow due to unstoppable trends

Jamieson Wellness (TSX: JWEL) is the second TSX stock I’d look to snatch up to provide long-term portfolio growth. This Toronto-based company develops, manufactures, distributes, markets, and sells natural health products in Canada and around the world. Shares of Jamieson have increased 5.1% in the year-to-date period. The stock is still up 6.4% year over year.

Grand View Research estimated that the global dietary supplements market was valued at US$151 billion in 2021. The market researcher projects that this market will deliver a CAGR of 8.9% from 2022 through to 2030. The COVID-19 pandemic increased health conscientiousness around the world, boosting interest in natural health products and supplements.

This TSX stock is trading in attractive value territory compared to its industry peers. It is on track to deliver strong revenue and earnings growth going forward. Jamieson even delivered strong growth in China in its most recent quarter, despite widespread lockdowns.