These 2 TSX Stocks Are Set to Soar in 2025 and Beyond

These two top TSX stocks from the tech sector have the high potential to deliver strong returns in the coming years.

| More on:
stocks climbing green bull market

Source: Getty Images

The TSX Composite has risen over 17% so far in 2024 as investors expect a gradually improving economic environment to boost corporate earnings in the coming years. This is one of the key reasons why most high-growth stocks have seen a spectacular rally. As we look ahead to 2025, certain businesses on the TSX could take this strong momentum even further, backed mainly by strong fundamentals, innovative business models, and exposure to fast-growing markets.

In this article, I’ll spotlight two top TSX stocks from the tech sector that could continue to soar in 2025 and beyond, making them attractive buys right now.

Celestica stock

After registering a 154% jump in 2023, the rally in Celestica (TSX:CLS) stock gained further steam in 2024 as it currently trades with 253% year-to-date gains. With this, CLS stock is now trading at $136.94 per share with a market cap of $15.9 billion. And I expect the ongoing strength in its financials amid strong demand for its services to keep driving the stock higher in 2025 and beyond.

In the trailing 12 months, Celestica’s total revenue rose 17.5% YoY (year over year) to US$9.2 billion due mainly to strong demand in its Connectivity & Cloud Solutions (CCS) segment, which surged by 42% in the third quarter alone. This growth reflects the company’s ability to tap into the rapidly expanding cloud computing and AI (artificial intelligence) markets, driven by its innovative solutions and robust customer relationships. More importantly, Celestica’s adjusted earnings in the last four quarters combined have jumped by over 60% YoY to US$3.57 per share, beating Street analysts’ expectations by a big margin.

This strong financial performance encouraged Celestica’s management to raise its full-year 2024 outlook, signalling continued confidence in its growth trajectory. The company now expects revenue to reach US$9.6 billion, up from its earlier projection of US$9.45 billion. In addition to these positive factors, Celestica’s continued focus on strategic partnerships and expansion into high-growth industries make it an excellent long-term buy, in my opinion.

Descartes Systems stock

Currently trading with a strong 49% year-to-date gain, while Descartes Systems (TSX:DSG) hasn’t experienced the same level of explosive growth as Celestica of late, it has quietly built a reputation as a consistent performer in the TSX tech sector. With the current market price of $164.50 per share, DSG stock has a market cap of $14 billion.

If you don’t know it already, this Waterloo-based company mainly focuses on logistics and supply chain management solutions, providing software and services that help businesses streamline operations and improve efficiency.

Despite recent macroeconomic risks, Descartes continues to impress investors with its strong and steady financial growth trends. In the latest quarter ended in October 2024, the company reported a 17% YoY increase in revenue to US$168.8 million, driven mainly by its services segment. Also, its adjusted quarterly earnings climbed by 35.5% from a year ago to US$0.42 per share.

With recent acquisitions, including MyCarrierPortal and Sellercloud, Descartes is expanding its portfolio to address evolving logistics and e-commerce challenges, which could help it sustain strong growth trends in the years to come.

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 Celestica. The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy.

More on Tech Stocks

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

How to Invest in Canadian AI Stocks for Long-Term Gains

AI stocks don't have to be scary, risky, or any of that. In fact, these stocks are proving to be…

Read more »

doctor uses telehealth
Tech Stocks

3 Tech Stocks to Buy Hand Over Fist in December

Given their growth prospects and improving profitability, these three tech stocks offer excellent buying opportunities.

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Dividend Stocks

2 Magnificent TSX Dividend Stocks Down 33% to Buy and Hold Forever

If you're looking for dividend stocks offering more potential in the very near future, these two are ones I'd pick…

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

Where Will Shopify Be in 1 Year?

Discover Shopify's potential trajectory in the coming year, from its AI innovations and enterprise expansion to international growth. Learn how…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

Is SHOP Stock a Buy Now?

Shopify (TSX:SHOP) stock soared 49% in 2024, but its record-breaking holiday sales and surging profits suggest this e-commerce giant's growth…

Read more »

Rocket lift off through the clouds
Tech Stocks

Prediction: 3 Reasons This Canadian Space Tech Stock Will Soar in 2025

Currently trading with a solid 146% year-to-date gain in 2024, MDA stock could deliver even better returns in 2025.

Read more »

how to save money
Tech Stocks

Promising Canadian Penny Stocks for the New Year

Here's why investing in these two profitable Canadian penny stocks may allow you to derive outsized gains in 2025.

Read more »

data analyze research
Tech Stocks

Is Lightspeed Stock a Buy Now?

Lightspeed stock has recently seen some positive momentum. Now what?

Read more »