Why Bay Street Is Buzzing About These 2 Stocks

Two TSX stocks with market-beating returns in 2023 are widely talked about in Bay Street.

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Market volatility could heighten further in November because of a potential recession. However, the buzz in Bay Street centres on Canadian stocks that continue to defy the massive headwinds in 2023. Celestica (TSX:CLS) and MDA (TSX:MDA), undoubtedly, are the shining stars on the TSX today.

The tech stock is up 119.27% year to date, while the aerospace & defence stock boasts a market-beating return of 84.22%. Growth investors can include the stocks on their buy lists this month.

A strong finish in 2023 and a great year ahead

Celestica provides high-reliability design, manufacturing, and supply chain solutions that guide customers at every stage of product development. The stock became a more compelling choice following the latest earnings release. In the third quarter (Q3) of 2023, revenue increased 6% to $2.04 billion versus Q3 2022, while net earnings jumped 75.5% year over year to $80.2 billion.

“Our solid Q3 2023 results and year-to-date performance have positioned us to exceed our previously issued 2023 annual financial outlook,” said Rob Mionis, president and chief executive officer (CEO) of Celestica. He added, “We are confident in our long-term strategy and our ability to deliver strong and consistent financial results.”

Other financial highlights include year-over-year increases in adjusted free cash flow (+360.8% to $34.1 million) and cash provided by operations (+18.8% to $88.4 million). For the full-year 2023, the $3.99 billion growth-oriented company expects adjusted free cash flow from $125 million to $150 million.  

Celestica derives revenue from two operating segments. The Advanced Technology Solutions (ATS) caters to the ATS end market, comprising businesses in the Aerospace and Defense (A&D), Industrial, Health Tech and Capital Equipment sectors.

Mionis said the industrial business in the ATS segment continued to experience very strong growth in 2023 due to new “green” programs, and the momentum should extend into 2024.

The Connectivity & Cloud Solutions (CCS) segment serves clients in the Communications and Enterprise (servers and storage) end markets. According to Mionis, this segment benefits from an improved business mix owing to the strength of the hyperscaler portfolio.

Mionis sees a strong finish to 2023 and another great year in 2024. The tech stock trades at $33.46 per share and has gained more than 330% in three years.

Space technology developer

MDA is hugging the headlines lately in the ever-expanding global space industry. The $1.4 billion Brampton-based company provides geo-intelligence, robotics and space operations, and satellite systems. Surprisingly, the business thrives amid a challenging environment.

In the first half of 2023, revenue rose 34.2% year over year to $397.9 million, while net income reached $26 million compared to the $400,000 net loss in the same period in 2022. Its CEO, Mike Greenley, said MDA is well positioned to capitalize on strong customer demand and robust market activity.

MDA’s CHORUS is the next-generation satellite constellation for Earth observation. The company will launch this group of artificial satellites in Q4 2025. SpaceX of Elon Musk was selected as the launch service provider. Consider investing now while the share price is only $11.79.


Celestica and MDA are making waves and performing well in their respective sectors. Whether you choose the innovative supply chain solutions provider or the space technology developer, you have a potential multi-bagger.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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