The Toronto Stock Exchange has been on fire, climbing over 20% last year and sitting near record highs. But even as the market soars, some stocks still have plenty of room to run. As interest rates in Canada continue to fall, the consumer spending environment could improve, which could help many growth stocks inch up further in the coming years.
In this article, I’ll introduce you to two top TSX stocks that I believe are set to soar in 2025 and beyond.
Aritzia stock
The first TSX stock that I expect to continue rallying in the coming years, Aritzia (TSX:ATZ), has more than doubled in value over the last year. As a result, it currently trades at $70.72 per share with a market cap of $8 billion. If you don’t know it already, this Vancouver-based fashion designer and retailer operates a large network of over 125 boutiques across North America while also selling its products through its online store.
If you’re wondering what’s been driving Aritzia stock higher, you may want to look at its strong financial performance and its U.S. expansion strategy. In its latest quarter ended in November 2024, the company posted an 11.5% YoY (year-over-year) rise in its sales to $728.7 million, with its e-commerce sales climbing 14%. More impressively, its U.S. market sales surged 23.6% YoY, now making up over 55% of total revenue. This data clearly shows how Aritzia is gaining traction south of the border, which could be a key factor in its long-term growth.
Beyond just sales, Aritzia’s profitability is also improving. Last quarter, the company’s adjusted net profit skyrocketed 57.5% YoY to $83 million. Similarly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 48.7% to $136.4 million with a strong EBITDA margin of 18.7%. The Canadian fashion retailer’s efforts to optimize costs, cut markdowns, and focus on efficiency have helped it post improved margins.
Meanwhile, Aritzia is aggressively expanding its real estate footprint, particularly in high-profile U.S. locations, which could accelerate its financial growth trends further.
goeasy stock
goeasy (TSX:GSY) could be another attractive TSX stock to buy in early 2025 and hold for years to come. This Mississauga-headquartered non-prime lender offers personal and automotive loans through its brands like easyfinancial, easyhome, and LendCare. With over 400 locations, the company helps consumers with restricted credit access obtain financing for essential needs.
After climbing by 19% over the last 12 months, GSY stock currently trades at $182.98 per share with a market cap of $3.1 billion. It also offers a quarterly dividend, with an annualized yield of 2.6%, making it even more appealing for income investors.
On the financial side, goeasy continues to deliver strong earnings growth despite macroeconomic challenges. In the third quarter of 2024, the company’s revenue surged 19% YoY to $383 million, while its loan originations hit a record $839 million, reflecting a strong 16% increase. Meanwhile, adjusted quarterly net profit climbed 15% from a year ago to $75.1 million.
With its focus on further expanding loan portfolios, improved underwriting, and $1.8 billion in funding capacity, goeasy stock could benefit from growing demand for its services as interest rates ease further in 2025.
