If I had $7,000 to invest in the TSX today, I wouldn’t be putting it all in one place. The Canadian market has a lot to offer, but the real opportunity lies in spreading your money across different kinds of businesses. I’d want a mix of value, innovation, and global exposure, all with solid fundamentals and a long runway ahead.
That’s why I’d divide my cash evenly between Celestica (TSX:CLS), CAE (TSX:CAE), and Shopify (TSX:SHOP). Each of these stocks has a different role to play on the TSX today, but together they build a strong foundation for a long-term Canadian portfolio.
Source: Getty Images
Celestica
Let’s begin with Celestica. This Toronto-based company has been around for decades, quietly making electronics and providing supply chain solutions. For a long time, it wasn’t on many investors’ radars. But that’s all changed in the past year. Celestica is now heavily involved in artificial intelligence (AI) infrastructure, high-performance computing, and advanced technologies that support everything from aerospace to cloud data centres.
Celestica’s most recent earnings report was impressive. For the first quarter of 2025, revenue came in at US$2.2 billion, up from US$1.9 billion a year earlier. Net income hit US$80.5 million, well ahead of analyst estimates. This growth reflects the shift in the company’s core business; it’s landing more contracts in faster-growing segments, especially related to AI server manufacturing.
While it’s not exactly cheap, the stock is reasonable given the company’s growth potential and expanding margins. With companies worldwide pouring money into AI infrastructure, Celestica is in the right place at the right time.
CAE
Headquartered in Montreal, CAE is a global leader in simulation training for aviation, defence, and healthcare. It’s the kind of company that flies under the radar on the TSX today, but plays a critical role in making sure airline pilots, military personnel, and doctors are well trained. It’s also a company with predictable revenue streams, backed by long-term contracts and recurring training needs.
In its most recent earnings update, CAE reported full-year fiscal 2024 revenue of $4.7 billion and a net income of $280.7 million. That was a strong rebound after the pandemic years, as pilot training demand has returned with force and defence spending has stayed strong.
The company also reinstated its dividend, showing management’s confidence in its stability. CAE offers something that many high-growth tech stocks don’t: consistency. It’s not likely to double overnight, but it can anchor a portfolio with steady returns.
Shopify
Last but not least, I’d round things out with Shopify. The Ottawa-based company has become a global name in e-commerce, giving merchants around the world the tools to build and scale online stores. Shopify has had its ups and downs, especially as growth slowed post-pandemic, but it continues to reinvent itself. The company’s latest results show that it’s still growing fast and staying relevant.
In Q1 2025, Shopify reported revenue of US$2.4 billion, a 27% increase from the same period last year. It did post a net loss of US$682 million, but much of that was related to investment write-downs, not core operations. On an adjusted basis, the company is profitable and continues to generate strong free cash flow.
Its market cap is around $190 billion, and the valuation is steep with a forward P/E of 75.8. But this is a business that’s not standing still. Shopify is investing in logistics, payments, AI tools, and even in-app selling solutions to help sellers reach buyers faster.
Bottom line
If I had $7,000 right now, I’d split it equally between Celestica, CAE, and Shopify. That’s about $2,333 into each stock. The beauty of this mix is the balance. You get a high-growth tech manufacturer with Celestica, a steady cash-generating business with CAE, and a dynamic global e-commerce leader with Shopify. These aren’t flavour-of-the-month picks, each are positioned to thrive in the years ahead.
