November 2024 was an exciting month for Canadian investors as the TSX Composite continued its upward momentum, rallying by 6.2% for the month and bringing its year-to-date gains to more than 22%. This surge provided opportunities to pick up some exceptional stocks with strong growth potential.
Amid this market rally, I zeroed in on three top Canadian stocks that align well with the Foolish Investing Philosophy and my long-term wealth-building strategy. These companies not only have strong fundamentals but are also leaders in their industries, which could help them sustain growth in the years to come. In this article, I’ll walk you through the three TSX stocks I added to my portfolio in November and why I’m confident they’ll help me build long-term wealth.
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Celestica stock
The first top stock I loaded up on last month was Celestica (TSX: CLS). After rallying by 26.3% in November alone, CLS stock currently trades at $120.37 per share with an impressive 208% year-to-date gain, extending its market cap to $13.9 billion.
Celestica mainly generates its revenue by offering end-to-end solutions, including design, supply chain management, and assembly of complex electronic products for a wide range of industries.
The ongoing strength in the company’s financials could be understood by the fact that its revenue has jumped by 17.5% YoY (year over year) over the last four quarters combined. Similarly, its adjusted earnings during the same period have climbed by over 60% YoY to $3.57 per share.
These latest strong results encouraged Celestica’s management to recently raise the full-year 2024 guidance and give a positive 2025 outlook. In addition, its continued investments in new technology brighten its long-term outlook.
Waste Connections stock
Waste Connections (TSX: WCN) is another rallying TSX stock I bought last month. After rallying by 35.5% year to date, the shares of this Woodbridge-based firm currently trades at $268.12 per share with a market cap of $69.4 billion.
Being a major player in the waste management industry, Waste Connections provides waste collection, recycling, and disposal services to residential, commercial, and industrial customers across North America.
Even as many growth companies have struggled due to a slowdown in economic growth over the last few years, Waste Connections continues to deliver strong financial performance. To give you a little idea about that, the company’s revenue rose by 10.7% YoY in the last 12 months, helping it post even stronger 19.4% growth in its adjusted earnings.
Moreover, its strong acquisition pipeline, sustainable margin expansion, and ongoing investments in resource recovery initiatives could help its growth in the long run.
OpenText stock
The third top TSX stock I added to my portfolio in November was OpenText (TSX: OTEX). Unlike Celestica and Waste Connections, shares of this Waterloo-based information management firm have dived by 24% so far in 2024 to currently trade at $40.51 per share with a market cap of $11.3 billion.
These declines in OTEX stock could be attributed to the recent weakness in its earnings growth trajectory due to the divestiture of its Application Modernization and Connectivity business, which affected its revenue in the latest quarter.
Nevertheless, OpenText’s long-term growth outlook might be largely unaffected by these short-term challenges, with its strong focus on innovation in areas like artificial intelligence and cloud-based solutions, making this top growth stock look undervalued to buy on the dip and hold for years to come.
