Canadian mid-cap stocks often get overshadowed by their large-cap counterparts. Yet 2024 proved that some of the most impressive growth stories come from the middle of the market. Among the standouts were goeasy (TSX: GSY), Celestica (TSX: CLS), and Secure Waste Infrastructure (TSX: SES). Each delivered exceptional returns, driven by strong earnings, solid management decisions, and promising future outlooks.
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goeasy
Starting with goeasy, the alternative lender continues to shine as a top growth stock. In its most recent earnings report, the company reported revenue of $814 million, reflecting a 5.1% year-over-year increase. While net income dipped slightly by 1% to $283 million, goeasy’s strong operating margin of 49.6% highlighted its profitability. The growth stock’s focus on diversified loan products and its geographic expansion have been key drivers of its resilience and growth.
Goeasy’s forward price/earnings (P/E) ratio of 8.6 suggests it remains undervalued despite its strong performance. With a forward annual dividend yield of 3.4% and a payout ratio of just 28.7%, the growth stock continues to reward investors while retaining capital for further growth. Given its consistent profitability and expansion strategy, goeasy appears well-positioned for continued success in 2025.
Celestica
Celestica has arguably been one of the biggest surprises on the TSX this year. The growth stock surged 179.6% over the past 52 weeks, driven by stellar earnings and growth across its electronic manufacturing services. Celestica reported quarterly revenue growth of 18.9% year-over-year, bringing total revenue to $9.7 billion. Net income soared by 80.2% to $428 million, demonstrating the company’s ability to convert sales into profits efficiently.
Celestica’s forward P/E ratio of 23.2 reflects investor confidence. Meanwhile, its return on equity (ROE) of 23.4% indicates strong management efficiency. The growth stock’s expansion into high-value sectors, including aerospace and healthcare, has further diversified its revenue streams. With a 52-week range of $55.10 to $206.57, the stock has been on an impressive upward trajectory.
Secure Waste
Meanwhile, Secure Waste Infrastructure, formerly known as Secure Energy Services, has quietly become a powerhouse in the environmental services sector. The company’s trailing P/E of 6.5 suggests it remains attractively priced despite its significant growth. Secure Waste reported revenue of $10.7 billion, up 9.5% year-over-year, while net income reached $582 million.
Secure Waste’s operating cash flow of $497 million and levered free cash flow of $944 million highlight its strong financial health. The growth stock’s forward annual dividend yield of 2.8% adds another layer of appeal for income-seeking investors. Management’s focus on efficiency and sustainability has positioned Secure Waste as a leader in the waste management space.
Bottom line
Looking ahead, all three companies show promise for continued growth. Goeasy’s expansion into new lending products, Celestica’s diversification into high-growth sectors, and Secure Waste’s dominance in environmental services make them compelling picks for 2025. The strong balance sheets, solid earnings, and reasonable valuations further strengthen the investment cases.
While mid-cap stocks can be more volatile than their large-cap peers, the growth stories of goeasy, Celestica, and Secure Waste Infrastructure show that the rewards can be well worth the risk. As these growth stocks continue to expand and innovate, these remain stocks to watch for Canadian investors seeking both growth and stability.
