The Canadian benchmark index trended higher in 2024, with top TSX stocks witnessing solid gains. Moderation in inflation, interest rate cuts, and increased investments in artificial intelligence (AI) infrastructure boosted investors’ sentiments, driving the equity market higher.
In 2025, the lower interest rate environment, ongoing investments in AI, and digital transformation could continue to support the rally in stocks. So, if you plan to invest $3,000 in stocks, here are a few fundamentally strong stocks to buy now.
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ADENTRA
ADENTRA (TSX: ADEN) is a compelling stock to buy in 2025. This distributor of architectural building products is well-positioned to capitalize on improving economic conditions, including moderating inflation and a likely decline in interest rates. These factors will likely drive a rebound in demand, boosting the company’s organic volumes and overall performance. Additionally, strategic acquisitions will contribute to its top-line growth.
The company is well-positioned to capitalize on favourable trends in its core markets, including repair and remodelling, residential and commercial sectors. Moreover, the company is taking steps to enhance profitability. ADENTRA’s focus on acquiring higher-margin businesses, expanding sales of ready-to-install products, leveraging its global sourcing program, and implementing strategic pricing and asset management initiatives is expected to enhance profitability and boost its share price.
The company’s management anticipates favourable building market conditions in the second half of 2025 and beyond, which will drive its financials. Further, ADENTRA is poised to generate robust cash flows, enabling it to reduce debt and pursue additional acquisitions from its strong mergers and acquisitions (M&A) pipeline. These cash flows could further support higher dividend payments, offering investors growth and income.
In summary, ADENTRA is a solid investment for 2025 and beyond, providing a compelling blend of growth prospects and income generation.
Celestica
Celestica (TSX: CLS) is another attractive stock to buy now for 2025 and beyond. The electronics manufacturing services and supply chain solutions provider is poised to capitalize on the aggressive investments in AI infrastructure.
Celestica has seen robust demand for its networking switches, a key component of its Hardware Platform Solutions (HPS) business. This demand has been instrumental in driving the company’s financial performance and stock price. In fact, Celestica’s stock has surged approximately 278% over the past year, reflecting growing momentum in areas like servers, storage, and networking.
With AI infrastructure investments expected to continue at a rapid pace, the momentum behind Celestica’s stock appears sustainable. Celestica is well-positioned to capture a larger share of hyperscaler spending and deliver solid financials.
While hyperscalers are major players in AI infrastructure investments, Celestica also benefits from the spending of digital-native enterprises and specialized AI cloud providers. These organizations are pouring resources into building advanced infrastructure, opening additional high-growth opportunities for Celestica. The company’s expertise in designing advanced hardware and delivering tailored solutions enables it to meet the unique needs of these clients. This ability to offer customized, high-value solutions allows Celestica to tap into high-margin growth areas and further strengthen its market position.
Overall, Celestica is well-positioned to deliver solid revenue growth and margin expansion in 2025, which will support its share price.
