2 Monster Stocks to Hold for the Next 10 Years

Investors could see strong returns by holding these two monster stocks over the next decade.

| More on:
chart reflected in eyeglass lenses

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Canadian stock market has been on a roll in 2024, with the S&P/TSX Composite Index up 17.4% year to date, fueled by cooling inflation and lower borrowing costs. This renewed optimism has created exciting long-term opportunities across a range of sectors.

By focusing on businesses with strong fundamentals and growth-oriented strategies, Foolish investors could still build a portfolio that thrives over the next decade. In this article, I’ll highlight two monster TSX stocks that could deliver exceptional returns in the next 10 years.

CAE Stock

CAE (TSX:CAE) stock has outperformed the broader market so far in 2024, especially in recent months. Having risen by over 40% over the last three months, shares of this Saint Laurent-based simulation technologies company currently trade at $34.18 per share with a market cap of $10.9 billion.

Despite slowing global economic growth, CAE has maintained a positive revenue growth trajectory. In the second quarter (ended in September) of its fiscal year 2025, CAE posted a 4.4% YoY (year-over-year) increase in its total revenue to $1.14 billion, exceeding analysts’ expectations with the help of strong demand in its civil aviation and defence segments.

The civil aviation segment, which accounted for nearly 56% of its total revenue, saw a 12% YoY jump to $640.7 million due mainly to full-flight simulator sales and long-term training contracts with major aviation players. Similarly, its defence operations posted a 4% increase in revenue to $495.9 million, a record $2.3 billion in new contract awards during the quarter.

Notably, the company recently secured a transformative $1.7 billion award under Canada’s Future Aircrew Training Program, solidifying its position as a leader in defence training and simulation. In addition, CAE’s acquisition of a majority stake in SIMCOM Aviation Training for $230 million further expands its footprint in the business aviation training market, diversifying its recurring revenue streams further.

With a record $18 billion order backlog and ongoing innovation in training technologies, CAE seems well on track to benefit from long-term growth opportunities in both civil and defence markets, which should help its share prices keep soaring in the long run.

Created with Highcharts 11.4.3Cae + Air Canada PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Air Canada stock

After declining for four consecutive years, Air Canada (TSX:AC) witnessed a strong recovery in 2024. With 17.5% year-to-date gains, AC stock currently trades at $21.96 per share with a market cap of $7.7 billion.

In the third quarter of 2024, Air Canada reported solid financial results despite facing certain short-term headwinds. The Canadian flag carrier’s operating revenue in the latest quarter reached $6.1 billion, though this reflected a slight 4% YoY drop due to lower passenger revenues. However, the airline’s operational improvements and cost management stood out, with free cash flow increasing by $147 million to $282 million.

Despite the recent optimism and a notable financial recovery in the post-pandemic era, Air Canada stock is still down 55% from the pre-pandemic year 2019’s closing level of $48.51 per share, making it look undervalued. Besides its strategic focus on efficiency without compromising on growth, gradually strengthening global travel demand makes Air Canada an even more attractive stock to buy now and hold for the next decade.

Should you invest $1,000 in Healwell Ai right now?

Before you buy stock in Healwell Ai, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Healwell Ai wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jitendra Parashar has positions in Air Canada. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Stocks for Beginners

Canadian dollars in a magnifying glass
Stocks for Beginners

How I’d Invest $15,000 in Canadian Consumer Discretionary to Afford Life’s Luxuries

The best Canadian consumer discretionary stocks can provide growth and income for years. Here's a trio to look at closely…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

Here’s Exactly How $15,000 in a TFSA Could Grow Into $215,000

If you're looking to grow your $15,000 investment into $200,000, here's exactly how to get it done.

Read more »

A worker gives a business presentation.
Dividend Stocks

Navigating Economic Headwinds and Buying the Dip

If you're looking to get in on the markets, but fearful of the market dip, then here's how to navigate…

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

Is BCE Stock a Buy for its Dividend Yield?

BCE stock looks pretty appealing with a 12% dividend yield, but there's more to consider.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA: Invest $15,000 in This TSX Stock and Create $962.55 in Annual Passive Income

If there's one TSX stock to buy right now, it's this long-term hold that's been around for over 100 years!

Read more »

A airplane sits on a runway.
Stocks for Beginners

Where Will Air Canada Be in 6 Years?

Here’s why the next six years could turn out to be great for Air Canada as well as its investors.

Read more »

Asset Management
Stocks for Beginners

Where I’d Put $25,000 in Quality Canadian Stocks for Long-Term Holdings

Do you want some defensive long-term holdings to add to your portfolio? This trio offers years of growth and income…

Read more »

Stocks for Beginners

Dip Buyers Could Win Big: The Best Canadian Stocks to Buy Now

These two growth stocks have taken hits recently, but their fundamentals remain strong, and their growth prospects are intact.

Read more »