Investing in growth stocks can help accumulate significant wealth through capital appreciation over time. However, growth stocks can be a risky investment. Thus, one should consider companies with solid fundamentals and strong growth potential. Against this background, here are two Canadian stocks that could skyrocket in 2025 and beyond.
TMX Group stock
Investors seeking solid growth stocks could consider adding TMX Group (TSX:X). As an integrated, multi-asset class exchange group, TMX operates across various financial markets, including equities, fixed income, and energy. Its diverse business model spans cash and derivative markets, clearinghouses, and financial data services, positioning it as a leading company in the domestic and global financial ecosystem.
TMX has been delivering impressive growth, generating strong profits and solid returns for shareholders. In 2024, the company reported double-digit increases in revenue and earnings per share, showcasing its resilience and ability to seize market opportunities.
The company’s organic revenue, excluding recent acquisitions, surged 17%, while adjusted earnings per share (EPS) climbed 30%. Meanwhile, income from operations saw a remarkable 41% increase. These gains were driven by significant growth in various segments, including a 25% rise in TMX Trayport’s licensees, a 20% boost in Montréal Exchange (MX) trading volumes, and a 19% increase in equity trading volumes, among other factors. Higher net interest income from TSX Trust also contributed to the company’s strong results.
Thanks to its strong financials, TMX Group stock has increased at a compound annual growth rate (CAGR) of over 19% in the last five years and delivered capital gains of over 143%.
Looking ahead, TMX is focused on building steady (recurring) revenue streams by expanding its Global Solutions, Insights, and Analytics (GSIA) segment and custodial fees. It is also expanding internationally, with half of its revenue now coming from outside Canada. Strategic acquisitions further strengthen its competitive position.
TMX Trayport is set to expand into climate markets, North American power, and Japanese power, which will support its recurring revenue. Further, strategic acquisitions will accelerate its growth rate. Overall, the company is poised to deliver double-digit earnings growth in the long term and reward investors with higher dividends. These attributes make TMX Group a compelling investment for 2025 and beyond.
goeasy stock
goeasy (TSX:GSY) is one of the top TSX growth stocks to buy and hold for the long term. It provides lending services to nonprime borrowers. Thanks to its leadership in the segment and a large addressable market, this financial services company has increased its revenue and earnings at a double-digit rate.
Over the past five years, goeasy’s revenue has expanded at a CAGR of 20.1%, while its net income has surged at a remarkable CAGR of 28.1%. This solid financial performance has translated into significant shareholder returns, with its stock price climbing at a CAGR of about 24% in the last five years, marking an overall gain of more than 193%.
Adding to its appeal, goeasy has increased its dividend per share for 11 consecutive years, including the recent 25% hike. The stock offers a decent yield of over 3.7%.
goeasy’s wide product offerings, omnichannel approach, diversified funding sources, and geographic expansion will drive loan originations and its top line. Further, solid credit performance and operational efficiency will lead to higher earnings and support its payouts.
Overall, goeasy stock is well-positioned to deliver above-average capital gains and steady dividend income in 2025 and beyond.
