The performance of Canadian stocks last year was exceptional, considering the 8.7% loss in 2022 and the 8.1% gain in 2023. All primary sectors, except communications services, delivered handsome returns to investors.
Many individual stocks had double-digit gains in 2024. However, every sector had a stellar performer that rewarded investors with so much more. The overall returns of four sector leaders are between 175% and 260%.
Technology
Celestica (TSX:CLS) was the best in the high-growth technology sector. Canada’s artificial intelligence (AI) king soared 242%-plus in 2024. Evolving market conditions, particularly the high AI demand, are the tailwinds. The $21.8 billion firm is a contract manufacturer for electronics companies and develops supply chain design and logistics services.
Its two core business segments, Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS), are income generators. In 2024, net earnings climbed 75% year-over-year to US$428 million. “We believe the positive momentum we are experiencing will continue beyond this year and into 2026,” said Rob Mionis, President and CEO of Celestica.
Energy
Tenaz Energy (TSX:TNZ) is not popular like Celestica but this small-cap stock (+257% gain) outperformed the AI king in 2024. Had you invested $7,520 a year ago, your money would be $31,460 today, a windfall of $23,940. TNZ currently trades at $15.72 per share.
The $437 million crude oil and natural gas producer operates in Canada and owns offshore gas assets in the Netherlands. Management prioritizes free cash flow generation to support the company’s balanced capital markets model. Tenaz will next focus on Europe and Latin America and capitalize on the sizeable market opportunity using an acquire-and-exploit strategy.
Financial
Dominion Lending Centres (TSX:DLCG) outperformed Canada’s Big Bank stocks in 2024. From $2.72 at year-end 2023, the share price rose 187%-plus to $7.80 on December 31, 2024. If you invest today ($8 per share), the financial stock also pays a modest 1.4% dividend.
The $658.4 million mortgage brokerage firm provides residential and commercial mortgage services through a network of independent mortgage brokers. Its Executive Chairman and CEO, Gary Mauris, feels the DLC Group is well-positioned to capitalize on market conditions as interest rates decline.
Healthcare
Vitalhub (TSX:VHI) was the high-flyer (+176%) in the healthcare sector in 2024. This $635.9 million software company provides electronic health records (EHR), case management, mobile solutions, and workflow automation to health and human service providers. VHI trades at $11.35 per share in mid-February 2025.
Hospitals, regional health authorities, mental health and addiction services providers, long-term care facilities, and home health agencies, among others, form Vitalhub’s client base. The operations are global (four continents), including an innovations lab in Sri Lanka.
After three quarters in 2024, revenue grew 23% year-over-year to $48 million. According to its CEO, Dan Matlow, Vitalhub will continue to build on the success of its diversified portfolio, both from a product and geographic perspective. The path to stable revenue and cash flow growth will likewise continue.
Unstoppable momentum
As of this writing, the TSX is up 3.7%-plus year-to-date but faces strong headwinds, particularly a tariff war. Nonetheless, the upward momentum of the four sector leaders in 2024 should carry over in 2025.
