As we approach March 2025, investors seek opportunities on the Toronto Stock Exchange that offer growth potential and resilience in an uncertain economic landscape. With interest rates stabilizing, the time is ripe to build a robust portfolio and gain exposure to quality growth stocks right now.
These three TSX standouts — Docebo (TSX:DCBO), Exchange Income Corporation (TSX:EIF), and NFI Group (TSX:NFI) — have demonstrated strong fundamentals, innovative business strategies, and promising growth trajectories that make them compelling buys for March 2025 and beyond. Let’s see why.
Docebo stock
Docebo has established itself as a leading player in the global learning management system market, with its artificial intelligence (AI)-powered SaaS platform serving over 3,900 customers worldwide.
The company’s recurring revenue model has driven impressive growth, with annual recurring revenue (ARR) reaching US$214 million as of the third quarter (Q3) of 2024.
What distinguishes Docebo is its unique ability to serve customer experience (CX) and employee experience (EX) learning needs under a single platform.
Docebo has increased its average contract value by roughly four times since 2017, reaching US$54,000 per customer in Q3 while maintaining a healthy 104% net dollar retention rate.
Docebo’s focus on AI integration is particularly impressive. Over the years, it has invested in capabilities like AI-powered content recommendations, semantic search, virtual coaching, and content authoring. Its FedRAMP certification also positions the company to capitalize on the US$2.7 billion government learning market.
Exchange Income Corporation stock
In Q3 of 2024, Exchange Income reported record revenue, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), free cash flow, and adjusted net earnings.
EIF’s aerospace and aviation segment has stood out, with revenue increasing 5% to $433 million and adjusted EBITDA jumping 25% to $155 million year over year in Q3.
EIC has strategically invested in growth initiatives, including several medevac contracts with provincial governments across Canada. These long-term contracts align with EIC’s business model, allowing it to generate consistent cash flows across business cycles. By the end of 2024, EIC is on track to surpass $1 billion in cumulative dividends paid, an impressive milestone in its 20-year history.
Chief Executive Officer Mike Pyle has provided bullish guidance for 2025, projecting adjusted EBITDA between $690 and $730 million. Analysts expect EIF to expand adjusted earnings from $3.07 per share in 2023 to $3.7 per share. So, priced at 14 times forward earnings, the TSX dividend stock is relatively cheap and trades at a 35% discount to consensus price targets.
NFI Group stock
NFI Group, a manufacturer of buses and coaches, is showing strong signs of recovery and growth despite supply chain challenges. In Q3 of 2024, NFI reported a 375% increase in adjusted EBITDA compared to last year, contributing to a $161 million improvement on a trailing 12-month basis.
NFI ended Q3 with a backlog of $12 billion, equivalent to nearly three years of production. The backlog is supported by secular demand drivers, including multi-billion-dollar government investments in zero-emission public transit in the U.S., Canada, and the U.K.
New orders were up 8.2% year over year in Q3, and the company’s book-to-bill ratio remains strong at 115%, indicating sustainable future growth.
NFI’s transition toward zero-emission vehicles is boosting its average selling price. Heavy-duty buses in its backlog are up 17% year over year and 62% since 2021. By 2025, the company expects approximately 40% of its volumes to be zero-emission vehicles, supporting improved gross margins and stronger profitability.
Given consensus price targets, analysts remain bullish on the TSX stock and expect it to gain over 75%.
