Although the S&P/TSX Composite Index has started the year with some volatility, long-term investors should keep their eyes on the bigger picture. Some of Canada’s most durable and innovative companies continue to deliver steady growth and have the potential to lead in the years ahead.
Here are two TSX-listed stocks that could generate unstoppable long-term gains for investors willing to buy now and hold with conviction.
TerraVest Industries stock
The first TSX stock that has become one of Canada’s most impressive compounders is TerraVest Industries (TSX:TVK). This Alberta-based firm builds everything from propane and natural gas transport vehicles to energy processing equipment. It serves industries like home heating, oil and gas, and alternative fuels, making it a key player in North American energy infrastructure.
TVK stock has surged more than 138% in the past year, and it’s up a staggering over 1,000% in five years. As of now, the stock trades at $141.76 per share, giving it a market cap of around $2.8 billion. It also pays a modest quarterly dividend, which works out to an annual yield of about 0.5%.
TerraVest’s sales rose 3% YoY (year over year) in the final quarter of 2024 to $234.6 million. But more importantly, its net profit for the quarter jumped 58% from a year ago to $30.4 million, supported by contributions from its recent quality acquisitions and a big foreign exchange gain. Even though its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) stayed flat, the company still managed to grow its cash available for distribution by 5% YoY, showing strong underlying performance.
Its long-term growth initiatives make TerraVest stock worth holding for years to come, as it’s not just riding short-term energy trends. In fact, the company is actively investing in manufacturing efficiency, expanding product offerings, and growing its rental fleet. Overall, with a rock-solid acquisition strategy and a sharp focus on domestic markets, TerraVest could maintain sustainable growth — and that’s exactly the kind of stock long-term investors can count on.
TD Bank stock
The second TSX stock that long-term investors can count on is Toronto-Dominion Bank (TSX:TD). As one of Canada’s largest and most recognizable banks, TD operates across personal and commercial banking, wealth management, insurance, and capital markets segments. After climbing by 16.5% over the last nine months, TD stock currently trades at $87.33 per share with a market cap of about $153 billion. It also offers a solid annual dividend yield of 4.8%, which is paid out quarterly.
In the first quarter (ended in January) of its fiscal 2025, TD posted an adjusted net profit of $3.6 billion — nearly flat on a YoY basis. Meanwhile, the bank’s adjusted earnings came in at $2.02 per share, up slightly from $2.00 per share. Its Canadian banking division had a great start to the year, with revenue rising 5% YoY to a record $5.1 billion. At the same time, the U.S. business faced some pressure due to restructuring and compliance investments.
Moreover, TD Bank’s improving operational efficiency and strengthening controls make it a great long-term buy for patient investors.
