2 TSX Canadian Stocks Set to Dominate the Global Market

Two Canadian stocks continue to beat the market and are well-positioned to dominate the global market.

| More on:
Maxar Technologies

Image source: Getty Images

The TSX has been highly volatile for most of 2023 due to several events and factors. Geopolitical risks, fluctuating oil prices, runaway inflation, and rapidly rising interest rates negatively impacted stocks. The index only had five winning months at the close of November.

However, two Canadian stocks have outclassed the broader market this year. MDA Ltd. (TSX:MDA) and Telesat Corporation (TSX:TSAT) have limitless growth potential and are well-positioned to dominate the global market.

Space economy

MDA operates in the exciting and expanding global space industry. The $1.4 billion company provides advanced technology and services to nearly all sectors in the space economy, including emerging space companies. Its team has world-class engineering capabilities and space mission expertise and manages a portfolio of next-generation space technologies.

According to management, MDA is ideal for investors looking to participate in a high-growth technology investment. The company focuses on technological innovation in a hyper-connected world. It hopes to lead the space industry into the future.

MDA’s primary objectives are to concentrate on its growth strategy and grow the business book. In the first nine months of 2023, consolidated revenues (Geo-intelligence, Robotics & Space Operations, and Satellite Systems) increased 32.4% to $602.6 million from a year ago. Net income jumped 101.7% year over year to $35.3 million.

The $3.1 billion backlog as of September 30, 2023, represents an 84.5% increase from the same period in 2022. Its CEO, Mike Greenley, said new order bookings include a $2.1 billion Telesat Lightspeed Low Earth Orbit (LEO) constellation award. As the prime satellite contractor, MDA will design, manufacture, assemble and test 198 satellites.

MDA’s acquisition of SatixFy Communications’ digital payload division indicates the continuing investment in digital satellite technology and the pursuit of market opportunities. Greenley adds that the development of MDA’s next-gen Earth observation constellation is ongoing. The company targets a launch window of Q4 2025 and has chosen SpaceX as its launch partner.

At $11.55 per share, MDA investors are up 80.5% year to date. Market analysts forecast a return potential between 24.5% and 55% in 12 months.

Advanced satellites

Telesat is a global satellite operator, and MDA is the builder of its advanced satellites. The $747.3 million company serves or addresses the needs of enterprises and government users. It also provides technical consultation and support services to satellite operators and other industry stakeholders.

Like MDA, Telesat thrives notwithstanding the economic uncertainties. In the nine months (three quarters) that ended September 30, 2023, revenue dropped 2.6% year over year to $538.3 million. However, net income reached $545.3 million compared to the $172.4 million net loss a year ago.

Telesat’s President and CEO, Dan Goldberg, said the Lightspeed LEO program is fully funded and, together with the MDA team, is moving forward. Goldberg firmly believes Telesat Lightspeed will revolutionize broadband connectivity for enterprise and government users. Moreover, he expects the program to deliver growth and value-creation opportunities for Telesat and its stakeholders.

If you invest today, TSAT trades at $14.34 per share (+50.8% year to date).

Very bright future

Market experts often say a stock’s past performance does not guarantee future results. You wouldn’t invested in MDA or Telesat three years ago because of underperformance. However, with a bright future, the share prices could soar to the moon.

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.

More on Tech Stocks

data analytics, chart and graph icons with female hands typing on laptop in background
Tech Stocks

Topicus Stock Jumps 16% on Killer Full-Year Earnings

Topicus (TSXV:TOI) reported strong earnings after revenues surged higher, and with a volatile market this is exactly what you want…

Read more »

Coworkers standing near a wall
Tech Stocks

3 Tech Stock Earnings Drops That the Market Got Wrong

These three tech stocks saw their shares drop after earnings, but investors need to think less macro and more micro…

Read more »

Woman has an idea
Tech Stocks

Is Nvidia Stock Headed for the Most Valuable Company on Earth?

Nvidia (TSX:NVDA) stock has surged to become the third most-valued company in the United States. So, is the top spot…

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

This Sector is the New Oil, and I’m Buying 1 Stock in Bulk

Oil is out, and semiconductor stocks are in. And when it comes to this sector, there is one Canadian stock…

Read more »

Dots over the earth connecting the world
Dividend Stocks

This is the 8th Wonder of the World, According to Albert Einstein: Utilizing it Correctly Can Help Make Saving for Retirement an Absolute Breeze

Those who understand compound interest know its power. It can convert $30,000 into $6,000 in annual retirement income.

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Tech Stocks

2 Soaring Stocks I’d Buy Now With No Hesitation

Are you looking for stocks to buy today? Don’t hesitate with these two soaring stocks!

Read more »

investment research
Tech Stocks

3.24 Billion Reasons to Ignore “The Magnificent 7”

The "Magnificent 7" has performed admirably over the last year, but as these tech stocks provided shaky results lately, there's…

Read more »

Happy Retirement” on a road
Tech Stocks

Want $1 Million in Retirement? Invest $10,000 in These 3 Stocks and Wait a Decade

Are you hoping to generate $1 million in retirement? Invest in these three stocks and wait a decade!

Read more »