Canada’s primary stock market has strong momentum entering 2025 following the nearly 18% return last year. Except for communications services, all the 10 primary sectors delivered handsome gains. Potential multi-baggers, two non-bank lenders and a software company in secure communications are starting to shine in mid-February.
If you’re looking for momentum stocks that could potentially double in value this year, Dominion Lending Centres (TSX:DLCG), Propel Holdings (TSX:PRL), or BlackBerry Limited (TSX:BB) should be on your watchlist, if not buy list. The trailing one-year price return of DLCG is nearly 200%, while PRL and BB are up more than 120% from a year ago.
Mortgage leader
Dominio Lending is slowly cementing its leadership position in the mortgage industry. The $681.2 million national mortgage brokerage and leasing company provides mortgage brokerage franchising and mortgage broker data connectivity services in Canada. It caters to homebuyers, notably first-timers and customers with limited access to credit or unsatisfactory credit records.
The full-year 2024 results aren’t out yet, although the business is thriving after three quarters. In the nine months ended September 30, 2024, reported net income soared 480% year-over-year to $12 million. Free cash flow (FCF) in the same period climbed 94% to $10.5 million from a year ago.
DLCG trades at $8.68 and pays a 1.4% dividend. Prospective investors will earn more from price appreciation than the modest dividend income.
AI-driven online lending platform
Propel Holdings facilitates access to credit for underserved consumers or borrowers. This fast-growing $1.3 billion financial technology company boasts an artificial intelligence-driven online lending platform. The year-over-year revenue growth in Q4 2024 (41% to $117.2 million) and after three quarters (45% to $320.4 million) were both record performances.
For the same periods, net income rose 70% and 80% to $10.5 million and $34.8 million from a year ago. Its CEO, Clive Kinross, said, “We are proud to deliver another quarter of record results in Q3, including record total originations funded revenue (36% growth).
Expansion in Europe is underway pending the acquisition of QuidMarket, a UK-based fintech. In 2024, the financial stock rewarded investors with a 189.9%-plus return. The current share price is $36.39 with a corresponding dividend offer of 1.8%. “There is still much more to come as we aim to become a global leader,” Kinross added.
High-flyer
BlackBerry is among the high-flyers in TSX’s technology sector thus far in 2025. At $8.39 per share, the software infrastructure stock is up 53.7%-plus year-to-date versus the broad market’s 3.9%-plus and the tech sector’s 13.4%-plus. The $5 billion company is making strategic moves like the disposition of an underperforming unit and rebranding of the Internet-of-Things (IoT) business.
Management will focus on the Secure Communications business, which includes BlackBerry UEM, BlackBerry AtHoc, and BlackBerry SecuSUITE. The primary goal is strengthening BlackBerry’s foothold in the secure communications space. The return to positive cash flow in Q3 fiscal 2025 is a silver lining. According to its CEO, John J. Giamatteo, the sale of the Cylance unit is a transformational step that should accelerate profitability.
Unstoppable momentum
Dominion Lending, Propel Holdings, and BlackBerry have unstoppable momentum. The stock prices could soar through the roof if business growth continues.
