It wasn’t hard to find big winners in 2024. The TSX Index of stocks rose by over 18% in the year. For an Index that normally earns 6–8%, it was a very strong performance for many TSX stocks.
That performance was also bolstered by some huge winners in 2024. In fact, here are three TSX stocks that massively outperformed in 2024. Despite their huge gains, they should still be stocks worth holding for long-term gains ahead.
MDA Space: A top TSX stock in 2024
MDA Space (TSX:MDA) rose by over 160% in 2024. That took it from a market cap of $1.4 billion to a market cap of $3.5 billion in the space of a year.
MDA is one of the premier designers and manufacturers for the space economy. Its products span communication satellites, observation, and space infrastructure.
The space industry has recently exploded. Demand for satellites and space infrastructure has rapidly increased from civil, commercial, and defence customers globally. MDA holds a critical supplier position. Consequently, its backlog has grown rapidly in the past couple of years.
In 2024, revenues grew by 34% and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose 25%. The company has generated strong free cash flows in the past few years. Today, it is debt-free with $167 million of net cash.
MDA has a lot of optionality and flexibility about how it continues to grow. Its backlog should support years of double-digit growth ahead. This TSX stock is not cheap at today’s price. However, if it can continue to execute (like it has), it should deliver great future returns for investors.
Aritzia: A great rebound in 2024
Aritzia (TSX:ATZ) likewise delivered an exceptional performance last year. This TSX stock soared by 105% in 2024.
At the end of 2023, Aritzia stock was left for dead after a year of heavy business investment and moderating growth. Fortunately, that was a near-term blip and the company returned to its solid growth posture in 2024.
For the first three quarters of fiscal 2025, Aritzia grew revenues by 11% and adjusted EBITDA by 48%. The fashion retailer has been making good strides expanding in the U.S. It opened 10 new boutiques and expanded three other boutiques.
The U.S. market is 10 times that of Canada. Aritizia has many years ahead to continue growing in that market. With a solid $207 million of net cash on its balance sheet, it has the firepower to continue fueling that growth.
This TSX stock recently pulled back on recession concerns. However, that could be an opportunity for a long-term investor.
Propel: A higher risk, but higher reward TSX stock
Propel Holdings (TSX:PRL) had an incredible year in 2024 with a 180% gain. The market started to appreciate its high growth and strong execution. Subsequently, the stock took off.
Propel provides specialized loans to the non-prime consumer segment. Certainly, this is a riskier market. However, Propel has an A.I.-driven lending platform that can effectively and efficiently underwrite loans.
It just purchased a business in the U.K. that should expand its European presence. Likewise, it has ample opportunities to keep growing in Canada and the U.S.
Certainly, with a North American recession impending, there are risks that loans may start to default. That could moderate growth near-term. This TSX stock is likely reflecting this risk after it declined 34% year to date. If you don’t mind risk for some higher reward, this could be a stock to buy today.
