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.
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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.
