The S&P/TSX Composite Index is up 21.4% this year amid interest rate cuts, easing inflation, and optimism over Donald Trump’s victory. Meanwhile, the following three Canadian stocks have outperformed the index due to their impressive quarterly performances. Let’s assess their recent performances and growth prospects to determine buying opportunities.
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Celestica
Last month, Celestica (TSX: CLS) reported an impressive third-quarter performance, with its revenue growing by 22% to $2.50 billion. It exceeded the company’s revenue guidance of $2.325-$2.475 billion. Strong growth of 42% in its CCS (Connectivity & Cloud Solutions) segment more than offset a 5% decline in its Advanced Technology Solutions (ATS) segment to drive its sales. Amid increased demand for its storage businesses and HPS (Hardware Platform Solutions) networking switches, the revenue from the CCS segment witnessed substantial growth during the quarter.
Supported by its revenue growth, Celestica has posted an adjusted EPS (earnings per share) of $1.04, representing a 60% increase from the previous year’s quarter. Moreover, the demand for AI (artificial intelligence)-ready data centres is rising amid AI usage growth, thus expanding the addressable market for the company. Given its new launches, including switches and storage controllers, the company could benefit from this market expansion. So, I expect the uptrend in the company’s financials and stock price to continue.
Waste Connections
Waste Connections (TSX: WCN) is a solid waste management company operating in the secondary and exclusive markets of the United States and Canada. Last month, it posted an excellent third-quarter performance, with revenue growing by 13.3% to $2.34 billion. A 6.8% price increase, the contribution from the companies acquired over the previous four quarters, and solid waste volume growth boosted its sales. Also, its adjusted net income grew 15.5% to $350 million during the quarter.
Moreover, WCN continues to expand its footprint through organic growth and acquisitions. It is building renewable natural gas (RNG) and resource recovery facilities, with the management expecting 12 RNG facilities to become operational in 2026. The company is investing in robotics and optical sorters at recycling facilities that can lower human resources and improve operational efficiencies. Also, the company’s innovative approach to employee engagement and retention could support its growth in the coming quarters. Considering its growth prospects and healthy financials, I believe WCN will outperform over the next three years.
WELL Health Technologies
WELL Health Technologies (TSX: WELL) posted an excellent third-quarter performance earlier this month, with its revenue growing by 27% to $251.7 million. Strong organic growth of 23% boosted its sales, while acquisitions contributed 4%. The company witnessed solid double-digit growth across its three segments. It had 1.48 million patient visits and 2.24 million patient interactions, representing a 41% year-over-year growth in both segments. Supported by topline growth, its adjusted earnings before interest, tax, depreciation, and amortization grew by 16%.
Meanwhile, the growing adoption of virtual services, increased usage of software solutions in healthcare, and digitization of patient records have created a multi-year growth potential for WELL Health. The company continues to develop artificial intelligence-powered products that could improve patient outcomes. Its inorganic expansion looks solid, with 17 signed letters of intent and definitive agreements in the pipeline. Along with these growth prospects, the company’s cost-cutting initiatives could improve its profitability and cash flows. So, the company is confident of completing its future acquisitions through cash generated from its operations. Considering all these factors, I expect the uptrend in WELL Health’s stock price to continue.
