The TSX has held up quite well in 2025 despite all of the risks and fears out there. Yet, some of us are still nervous about the outlook for 2025. In this article, I will discuss two TSX stocks that I believe will outperform this year and even quite possibly soar.
BlackBerry
BlackBerry (TSX:BB) is one of Canada’s most exciting technology stocks. I know that there has been a lot of disappointment with regard to BlackBerry in the past, but I think that this year will be different.
Here’s why I think this.
Firstly, in BlackBerry’s latest quarter, the company exceeded the top end of its guidance. It also finally returned to profitability, with positive earnings reported. And as a cherry on top, BlackBerry reported positive free cash flow for the first time since its third quarter in 2022.
So, what’s driving this? Well, the momentum that BlackBerry is seeing in its automotive software business, QNX. This business continues to introduce connected cars to the world. Also, machine-to-machine connectivity is expanding at a feverish pace. BlackBerry is also involved in industrial and medical applications of this technology, which are also growing well.
BlackBerry’s stock price has rallied accordingly as its business is picking up and as investors see the potential. Looking ahead to 2025, I expect that the interest in BlackBerry’s software will continue to grow. Just last quarter, the company received more interest and more orders from various automakers. For example, BlackBerry secured an order from a German luxury automaker for QNX hypervisor for the digital cockpit. Another order came from Asia’s largest automaker for different QNX systems.
So far in 2025, BlackBerry stock has already gotten off to a good start. As you can see from the graph below, it has already rallied 48% this year. I expect this momentum to continue as the company continues to make headway into the business and, therefore, report increasing profitability.
Cineplex
As Canada’s leading entertainment destination and one of the most badly hurt stocks during the pandemic, Cineplex (TSX:CGX) has a lot of room to move higher. And it looks like 2025 might very well be the year that it does so. In fact, Cineplex stock is already 41% higher compared to one year ago.
The company’s recent earnings release demonstrates why this rally makes sense. And why we will likely see more strength in the stock in 2025. In a nutshell, the fourth quarter of 2024 was another record-breaking quarter, with box office results that showed the strength of the movie exhibition business. Strong attendance of 11 million increased by 16%, which drove a 15% increase in revenue to $363 million.
This translated into strong cash flow generation, with operating cash flow increasing 27% to $106 million. This sets up Cineplex to continue to improve its balance sheet, invest in growth, and provide shareholder returns. In 2025, we can expect more share buybacks. Also, the re-introduction of a dividend is approaching as the company continues to see momentum in its business.
