The Toronto Stock Exchange’s year-to-date gain is above 14% following three rate cuts this year, and it’s up 9.72% in the last three months. On September 10, 2024, Canada’s primary stock market released the sixth annual TSX30 List, recognizing and ranking the top 30 performing growth stocks.
Constituents of energy, industrial, and mining sectors dominate this year’s edition. The returns based on dividend-adjusted share price performance over three years range from 134% (30th place) to 928% (first). Given the outsized gains, the stocks made some investors rich.
If you’re looking for stocks to make you rich in 2024 and beyond, consider Celestica (TSX: CLS) and Secure Energy Services (TSX: SES). Both are TSX30 winners, but the share prices are relatively cheaper than top-ranked Hammond Power Solutions. Besides the strong momentum, the growth runways are long.
AI king
Celestica is Canada’s artificial intelligence (AI) king and counterpart of NVIDIA in the United States. The tech stock trades at $68.41 per share, up 76.27% year to date. The trailing one-year return is 125.18%, while the overall return in three years is 471.51%.
The $8.11 billion tech company benefits from the AI tailwinds. Celestica is a leader in high-reliability design, manufacturing and supply chain solutions. It operates in North America, Europe, and Asia and helps clients solve and overcome complex technology challenges.
Let us zero in on the latest quarterly results. In the second quarter (Q2) of 2024 (three months ending June 30, 2024), revenue and net earnings jumped 428% and 125.85% year over year to US$2.4 billion and US$99.6 million. Only two strong segments, Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS), contribute to revenues.
Global supply chain constraints adversely impacted Celestica’s financial and operational performance, although the business has improved tremendously as the constraints have been minimal in recent quarters. Still, management is worried they might resurface in the future.
Meanwhile, Celestica plans to continue investing in areas necessary to support its long-term objectives and create shareholder value. On a year-to-date basis (first two quarters in 2024), net earnings climbed 151% year over year to US$201.3 million. The ATS and CCS posted revenue growths of 33% and 67%, respectively, in the same period.
Robust industry fundamentals
Secure Energy Services placed ninth on the TSX30 List, with +216% performance in three years. At $12.62 per share, current investors enjoy a 36.16%. You can earn more besides the price appreciation because the industrial stock pays a 3.17% dividend. Market analysts recommend a buy and “strong buy” ratings.
The $3 billion company operates in the waste management industry. Secure has waste management facilities and industrial landfills. It also provides customer-driven solutions such as energy, transportation, and drilling and engages in heavy equipment contracting.
In the first half of 2024, revenue and net income climbed 46.4% and 410% year over year to $5.4 billion and $454 million, respectively. Also, in Q2 2024, discretionary free cash flow increased 26% to $53 million versus Q2 2023. Its president and chief executive officer, Allen Gransch, cited the robust industry fundamentals for the impressive financial results.
Momentum stocks
Celestica and Secure Energy Services are money-makers. Both are momentum stocks that will deliver far superior returns not only in 2024 but in the years ahead.
