The S&P/TSX Composite Index is roaring to new all-time highs in 2024, and with interest rates falling, investors’ focus is shifting to stocks that can provide consistent growth over the long term. If you’re someone who follows the Foolish Investing Philosophy of buying and holding stocks, now could be the perfect time to invest in such growth stocks that could provide solid returns in the next 20 years. With the right picks, you could set yourself up for impressive long-term gains without having to constantly monitor the market.
In this article, I’ll introduce you to two rallying TSX stocks that have the potential to remain among the top performers in Canada over the next two decades.
Aritzia stock
After rallying by 124% in the last year, Aritzia (TSX:ATZ) is continuing to outperform the broader market by a wide margin in 2024. This Vancouver-headquartered apparel designer and retailer currently has a market cap of $5.5 billion as its stock trades at $48.99 per share.
The recent rally in Aritzia stock could mainly be attributed to its strong financial performance and strategic expansion into the U.S. market. In the first quarter (ended in May 2024) of its fiscal year 2025, the company’s total revenue rose 7.8% YoY (year over year) to $498.6 million. What’s even more impressive is its 13% YoY sales growth in the United States, which now makes up more than half of the company’s total revenue. This growth is driven by Aritzia’s real estate expansion strategy, which involves opening new boutiques and repositioning existing ones in high-traffic areas across major U.S. cities.
In recent quarters, Aritzia has also been optimizing its inventory and focusing on offering customer-favourite styles, which helped it achieve positive comparable sales growth in all regions and channels last quarter. With plans to continue expanding its footprint and further improve its e-commerce operations, the Canadian fashion retailer’s growth story is far from over.
Despite facing some margin pressures in its fiscal year 2024 due partly to inflationary pressures, Aritzia’s financial results continue to show it can navigate a difficult retail environment while maintaining profitability. That’s why, for long-term investors, Aritzia stock may offer a healthy mix of solid financials, brand strength, and growth potential.
Celestica stock
Celestica (TSX:CLS) stock could be another top Canadian growth stock you can consider buying now and holding for the next 20 years. After ending 2023 with solid 154.3% gains, CLS stock has already risen 78% so far in 2024. With this, it currently trades at $69.09 per share with a market cap of $8.1 billion.
This Toronto-based firm mainly specializes in electronics manufacturing services and supply chain solutions, with a focus on high-growth industries such as cloud computing, health technology, and aerospace. Celestica’s ability to adapt to changing market trends and maintain long-term partnerships with major global companies could be the primary reason for its impressive stock performance in recent years.
Moreover, favourable demand trends in sectors like cloud computing and aerospace, combined with Celestica’s focus on delivering strong operational performance, make it an amazing growth stock to buy now and hold for decades.
