Stocks can help create significant wealth over time. Notably, several TSX stocks have appreciated multiple times, generating stellar returns over the past decade. So, if you are planning to invest for tomorrow, here are three fundamentally strong stocks that can build lasting wealth in the long run.
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Celestica stock
Celestica (TSX:CLS) is a top TSX stock for building lasting wealth. It is well-positioned to capitalize on higher spending on artificial intelligence (AI) infrastructure. The electronic manufacturing, hardware platform, and supply chain solutions provider is benefitting from large-scale investments in data centre infrastructure from its hyperscale customers. This includes solid demand for its hardware platform solutions (HPS) offerings.
Thanks to this stellar demand, Celestica stock has appreciated about 995% in five years. Moreover, the stock has significant upside potential, given the accelerated spending on AI infrastructure.
Celestica’s financials are poised for further improvement. In its Communications end market, rising demand for HPS networking switches is expected to drive revenue growth. Meanwhile, its Enterprise business will likely see a boost from stronger demand in the storage sector, reflecting the broader trend toward data-intensive AI applications.
The company’s ability to leverage higher sales, improve production efficiencies, and optimize its product mix will likely enhance its margins. These factors are expected to support its bottom line, providing a solid foundation for future share price appreciation.
Shopify stock
Shares of omnichannel commerce platform provider Shopify (TSX:SHOP) are a must-have in your long-term portfolio. Shopify is well-positioned to thrive as businesses increasingly adopt multi-channel selling models. This shift is expected to boost Shopify’s financial performance and its share price.
Shopify has been consistently growing its gross merchandise volume (GMV) and revenue at an impressive rate. A key driver of this growth is the rise in its merchant base and higher adoption of Shopify Payments, particularly among its high-value Shopify Plus members.
Further, Shopify’s strategic initiatives, including improved go-to-market strategies and continuous product innovation, have enabled it to tap into multiple growth areas. These include business-to-business (B2B) commerce, offline sales, and international markets. Each of these segments is expanding Shopify’s overall addressable market.
Shopify’s ability to innovate is a significant competitive advantage. By introducing new products and enhancing its platform, it continues to attract more merchants, driving up GMV and payment volume. Additionally, Shopify’s focus on operational efficiency and its asset-light business model are key to its long-term sustainability. The company is also leveraging artificial intelligence to boost productivity, helping to optimize costs and improve earnings.
Hammond Power Solutions stock
Long-term investors could consider investing in Hammond Power Solutions (TSX:HPS.A). The company makes dry-type transformers and power quality products, which are key to supporting electrification in various industries. This puts Hammond in a strong position to benefit from steady demand in traditional sectors like utilities and infrastructure while also tapping into fast-growing markets such as data centres, electric vehicle (EV) charging, and renewable energy.
Hammond has been posting solid sales and earnings, with a healthy backlog that should support future revenue growth. The company’s strategic acquisitions have expanded its product lineup and customer base, opening doors to more opportunities in custom power solutions. As demand for large transformers rises and project inquiries grow, Hammond is increasing its production capacity to stay ahead.
Its focus on innovation, market expansion, growing production capacity, and exposure to emerging industries such as AI, EVs, and renewable energy make it a compelling long-term pick.
