Buying and holding a few top TSX stocks with high growth potential can significantly enhance your portfolio’s return in 2025. These fundamentally strong stocks will likely deliver above-average growth and outperform the benchmark index by a substantial margin. Against this backdrop, here are my top three TSX stocks to buy for 2025.
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TSX stock #1
Aritzia (TSX: ATZ) is one of the top TSX stocks to buy now. Shares of this clothing retailer have risen over 94% in 2024. This upward trend will likely be sustained in 2025, driven by its ability to rapidly grow its revenue and earnings. Notably, Aritzia’s net revenue has grown at a compound annual growth rate (CAGR) of 19% over the past eight years. At the same time, its adjusted net income increased at a CAGR of 13%.
The company’s top line will likely benefit from its focus on new boutique openings, growing customer base, increasing brand awareness, and introducing new styles. Aritzia is expanding its footprint, primarily in the U.S., which will likely boost revenue growth rate. Aritzia plans to open eight to 10 new boutiques in the U.S. each year and reposition three to five boutiques annually through fiscal 2027, aiming to increase its retail footprint by about 60%.
Geographical expansion and investments in digital marketing will grow its brand awareness and accelerate growth. Aritzia is also enhancing its omnichannel capabilities, improving its supply chain, increasing its operational efficiency, and reducing warehousing costs, which will boost its profitability and support its share price.
TSX stock #2
TerraVest Industries (TSX: TVK) is another solid TSX stock worth buying now for its stellar growth prospects. Shares of this leading industrial manufacturer have jumped over 154% in one year and delivered an impressive return of about 882% in five years.
Despite this notable increase in value, TerraVest stock has more room to run. The ongoing momentum in its sales, focus on accretive acquisitions, and strong demand for its services will likely drive its financials and share price.
TerraVest’s focus on international markets and expansion of its product offerings will accelerate its sales growth rate. Moreover, its investments to improve manufacturing efficiency will likely boost its profitability. In addition, TerraVest’s robust balance sheet and solid liquidity position will likely help the company pursue high-growth opportunities, including acquisitions.
In summary, TerraVest is poised to deliver solid free cash flow per share and enhance shareholder value through 2025 and beyond.
TSX stock #3
Investors could add goeasy (TSX: GSY) stock for its ability to deliver stellar financials and above-average returns. Notably, the sub-prime lender’s top line has increased at a CAGR of 19%, while its adjusted earnings per share have soared 28.6% since 2013. Thanks to its impressive growth and solid fundamentals, goeasy stock has delivered stellar returns and enhanced shareholders’ value through higher dividend payments.
Shares of this financial services company have gained about 172% in five years, delivering a CAGR of 22.1%.
While goeasy has outperformed the TSX composite index with its returns, it is poised to deliver solid growth in 2025. The company is well-positioned to capitalize on the growing subprime lending market amid solid loan demand. Further, its omnichannel offerings, diversified funding sources, and strong credit underwriting capabilities will drive its financials and support future dividend payments.
Adding to the positives, goeasy stock is trading cheap. Its forward price-to-earnings multiple of 8.7 looks attractive, considering its ability to grow earnings by a solid double-digit rate and a decent dividend yield of 2.8%. Overall, goeasy is a top TSX stock for investors seeking value, income, and growth in 2025.
