Canadian stocks recently touched their highest level in history as growing optimism about upcoming interest rate cuts and a better-than-feared economic environment continues to boost TSX investors’ sentiments. When the stock market is at record highs, everyone wishes they had invested in some of the top-performing stocks in the past decade. However, it’s never too late to start investing in growth stocks that have the potential to generate stellar returns in the long term.
In this article, I’ll highlight two such growth stocks on the Toronto Stock Exchange that you can buy today and hold for 10 years or more to expect some eye-popping returns on your investments.
Celestica stock
Celestica (TSX:CLS) is the first TSX growth stock you may want to add to your portfolio today. After rallying by 314% in the last year, CLS stock now trades at $60.14 per share with a market cap of $7.1 billion. But it still has a lot of room for further gains based on its long-term growth outlook.
This Toronto-headquartered company focuses on providing manufacturing services for electronic products, including designing, developing, and assembling components and systems for various industries. Two of the main factors that make Celestica’s business model so reliable are its expertise in complex electronics manufacturing and its diverse customer base across different sectors, which helps ease risks of demand uncertainties in any single industry.
Even as the ongoing macroeconomic challenges have affected businesses across the globe, Celestica’s financials continue to maintain positive momentum. In the last 12 months, the company’s total revenue has gone up 10.8% YoY (year over year) to US$8.3 billion as the demand from a number of its big customers remained solid. As a result, Celestica registered a solid 41.7% YoY jump in its adjusted earnings during the same four quarters to US$2.82 per share.
As it remains focused on strong execution and strategic priorities amid strengthening demand, I expect Celestica’s shares to continue soaring over the long term.
Evertz Technologies stock
Evertz Technologies (TSX:ET) could be another really attractive TSX growth stock to consider right now. It’s a Burlington-based tech company that primarily focuses on developing video and audio infrastructure solutions for broadcasters. ET stock currently has a market cap of $1.1 billion as its stock trades at $13.90 per share after surging by 19.2% in the last year.
In the last four quarters combined, Evertz’s total revenue went up by 17.9% YoY to $520.8 million, which led to a 14.8% increase in its adjusted earnings to $0.97 per share. In the quarter ended in January 2024, the company registered a remarkable 38% YoY surge in its international market sales. Similarly, its quarterly sales in the United States and Canada also grew positively by 13% from a year ago. This geographic diversity underscores Evertz’s strong market presence and its ability to capitalize on global opportunities.
Evertz’s significant backlog of purchase orders, which stands at over $292 million, along with $40 million in shipments during February 2024, points to a strong sales pipeline and the potential for consistent revenue streams. Moreover, its strategic focus on high bandwidth, low latency IP network environments, and cloud-based solutions brighten the company’s long-term growth outlook, making this TSX growth stock a compelling buy for long-term investors.
