Investing in sustainable emerging trends can be one of the most powerful ways to generate eye-popping returns over the long run. Most companies that lead innovation in high-growth industries often see their stock prices soar as demand for their technologies and services explodes. From artificial intelligence to space technology, some emerging trends are on the verge of massive expansion in 2025 and beyond, creating once-in-a-lifetime investment opportunities.
In this article, I’ll explain why one such TSX-listed stock, MDA Space (TSX:MDA), is my top pick for smart investors looking to put $1,000 into a game-changing growth stock right now.
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MDA Space stock
If you don’t know it already, MDA Space is a Toronto-headquartered firm that seems on the path to quietly becoming a top name in the global space industry. While it might not grab as many headlines as some of the big U.S. space players, MDA has been making serious moves, and investors are starting to take notice as its stock has surged by 74% over the last year. With this, the stock currently trades at $24.35 per share with a market cap of $3 billion.
One of the biggest reasons MDA Space has managed to grab investors’ attention of late is its massive contract wins. In its latest reported quarter ended September 2024, the company’s order backlog exploded to $4.6 billion, up nearly 50% YoY (year over year) due mainly to high-profile projects like Canadarm3 and the Telesat Lightspeed satellite constellation.
Solid financials are boosting optimism
MDA Space isn’t just stacking up contracts but also delivering on them. In the third quarter of 2024, the company’s revenue surged 38% YoY to $282.4 million, with strong growth in its Satellite Systems and Robotics & Space Operations segments. More importantly, its adjusted net quarterly profit climbed by 217% from a year ago to $29.5 million, while its adjusted earnings shot up 200% to $0.24 per share.
Similarly, the company’s operating cash flow hit $258.8 million last quarter, reflecting a major improvement from a $30 million outflow in the same quarter of the previous year. This means MDA Space isn’t just growing but becoming more financially efficient and profitable while expanding its business.
Why this growth stock is a smart buy right now
There are several factors that make MDA stock a really attractive investment today. For example, the space economy is booming, and MDA is at the center of some of the most critical projects in the industry. Whether it’s space robotics, Earth observation, or satellite communications, the company has been striving to establish itself as a key player in multiple fast-growing sectors.
Moreover, MDA Space is actively investing in the future. Just recently, it locked in a $1.1 billion contract with Globalstar to build a new low-Earth-orbit satellite network. Investors love steady, long-term contracts that provide revenue visibility for years to come, and MDA is securing them consistently. Given these strong fundamentals, it could be a solid choice for investors looking to put $1,000 into a growth stock with serious upside as it continues to ride the wave of the space boom.
