The Canadian stock market is on a strong run in 2024. As better-than-expected economic growth, declining interest rates, and easing inflation have boosted investors’ confidence, the TSX Composite Index has risen 19.5% year to date.
And if you’re kicking yourself for not getting in earlier, you’re not alone. But here’s the thing: It’s not too late. A strong market doesn’t mean all the growth has been squeezed out. Even as many top-performing stocks are currently trading close to their all-time highs, their strong fundamentals and improving growth prospects suggest there is still room for further gains.
In this article, I’ll highlight two of the best TSX growth stocks you can consider adding to your portfolio today to benefit from the ongoing strong market momentum.
Bird Construction stock
Bird Construction (TSX:BDT) is the first growth stock you may want to consider on the TSX today. It currently has a market cap of $1.6 billion as its stock trades at $29.31 per share after more than doubling in value so far this year.
If you don’t know it already, this Etobicoke-based construction firm specializes in commercial, institutional, industrial, and infrastructure projects. Bird Construction generates revenue by managing large-scale construction contracts, including design-build projects, general contracting, and project management services across various sectors.
The recent surge in BDT stock could be mainly attributed to its solid financial growth trends. Even as macroeconomic uncertainties have affected the financials of many businesses, Bird Construction’s total revenue saw over 22% YoY (year-over-year) increase over the last 12 months to $3.3 billion with the help of strong organic and acquisition-driven growth. More importantly, its adjusted earnings during these four quarters combined jumped by 44.3% YoY to $1.76 per share due mainly to its improved operational efficiency and a stronger focus on higher-margin projects.
Besides its ability to expand both its revenue base and profitability despite challenging market conditions, Bird’s increasing focus on strategic markets, including nuclear, infrastructure, and energy, brightens its long-term growth outlook, which could help its share price continue soaring.
MDA stock
While Bird Construction’s strong performance makes it an attractive stock to buy, there’s another TSX growth stock that’s reaching for the stars — quite literally. Let’s shift our focus to the exciting realm of space technology, where MDA Space (TSX:MDA) has been making its mark. It currently has a market cap of $3.2 billion as its stock trades at $26.54 per share with outstanding year-to-date gains of 131%. This Toronto-based space technology firm focuses on providing satellite systems, geospatial data, and advanced robotics solutions.
In the third quarter this year, MDA registered a solid 38% YoY rise in its revenue to $282.4 million with the help of higher work volumes across major business segments. Similarly, its adjusted quarterly earnings more than doubled from a year ago to $0.24 per share, crushing Street analysts’ expectations of $0.15 per share.
With robust revenue visibility for 2025 and beyond due to its impressive $4.6 billion project backlog, MDA Space seems well-positioned for long-term growth, which should keep the rally in this TSX growth stock going.
