The Canadian benchmark index jumped about 18% in 2024, and the uptrend will likely continue in 2025, led by a lower interest rate environment, moderation in inflation, growing demand for power and energy, investments in artificial intelligence (AI) infrastructure, and digital transformation. With this backdrop, here are the top Canadian stocks with solid fundamentals to buy now with $5,000.
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Celestica stock
Celestica (TSX: CLS) is a top Canadian stock to buy in 2025. While its stock has gained significantly, led by AI-driven demand, it has further room for growth. The company continues to witness substantial growth, particularly in its Connectivity & Cloud Solutions (CCS) segment, where it continues to see strong demand for networking products.
Further, the introduction of DeepSeek’s R1 large language model (LLM) is expected to have a neutral to positive impact on Celestica’s trajectory. As AI adoption accelerates, driven by lower training costs, a growing need for high-bandwidth, low-latency networking infrastructure is needed. As a leading provider of networking solutions, Celestica is well-positioned to capitalize on this trend.
The company’s AI/ML compute business shows promising growth prospects, supported by ongoing programs and anticipated new contracts scheduled to ramp up throughout 2025 and into 2026. Additionally, the company foresees significant opportunities within its networking segment. Overall, Celestica is a compelling investment choice in 2025.
TerraVest Industries stock
TerraVest Industries (TSX: TVK) is another top stock to buy now. The diversified industrial company has a strong competitive position in several key markets. It manufactures home heating products, anhydrous ammonia, propane, and natural gas liquids transport vehicles and storage vessels, energy processing equipment, and fiberglass storage tanks.
TerraVest’s financial performance has been impressive, with solid demand driving revenue growth and supporting its rising share price. Looking forward, TerraVest’s growth will be supported by multiple factors, including its focus on expanding into international markets and diversifying product offerings, which positions it well to capture new business opportunities. Additionally, its accretive acquisitions will bolster its market presence and accelerate its growth.
TerraVest will also benefit from its manufacturing efficiency. TerraVest can maintain competitive margins and remain resilient amid market challenges by continually improving operations. Moreover, its solid balance sheet and free cash flows further strengthen the company’s ability to invest in growth initiatives and capitalize on emerging opportunities.
Shopify
Shopify (TSX: SHOP) is a solid long-term bet. The omnichannel commerce platform provider is poised to benefit from the growing shift towards multi-channel selling platforms. Further, the lower interest rate environment and increase in consumer discretionary spending will likely fuel e-commerce demand, supporting Shopify stock.
Shopify is performing exceptionally well, reflected by the continued momentum in its gross merchandise volume (GMV). The growing GMV is driving its top line at a healthy pace and reflects sustained demand for its integrated platform.
The Canadian tech giant will also benefit from the growing adoption of its new products, including its payment solutions. Moreover, solid opportunities within B2B, international, and offline businesses will accelerate its growth. Further, Shopify’s focus on improving operational efficiency, investments in AI technology, and transition towards an asset-light business model enable it to generate sustainable earnings in the coming years and will likely support its share price.
