The second half of 2025 is shaping up to be full of surprises, but a few Canadian stocks are already showing strong signs of momentum. For investors hoping to stay ahead of the curve, it’s worth paying attention to companies that are not just surviving the current market but outperforming expectations. Two names on the TSX that have caught attention lately are Dollarama (TSX: DOL) and Celestica (TSX: CLS). Both have been soaring and show no signs of slowing down.
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Dollarama
Dollarama has long been considered a go-to Canadian stock during tough economic times, and 2025 is proving no different. As consumers continue to worry about inflation and rising interest rates, demand for affordable everyday goods has remained strong. Dollarama is meeting that demand across more than 1,500 stores in Canada.
In its latest earnings report, for the quarter ending May 4, 2025, the Canadian stock reported sales of $1.5 billion, up 8.2% from the same period last year. Net income climbed to $390.9 million, up from $282.6 million a year earlier. Diluted earnings per share (EPS) came in at $0.98, well above analyst expectations, which had been around $0.83. Same-store sales also saw impressive growth of 5.6%, highlighting strong consumer loyalty.
One of the reasons Dollarama continued to perform well is its ability to scale efficiently. Margins remain strong, and the company is taking steps to expand internationally. In May 2025, Dollarama announced it had acquired a major stake in The Reject Shop, an Australian discount retailer. This deal not only gives Dollarama another foothold outside North America but also signals its longer-term growth ambitions – ambitions already seen come to fruition with its investment in Dollar City. The market responded positively, with shares jumping nearly 10% in a single day after the news broke.
Celestica
Celestica is a different kind of growth story. It doesn’t sell consumer goods or operate retail stores. Instead, it’s a technology manufacturer, providing design, engineering, and supply chain solutions for a range of industries including aerospace, healthcare, and clean energy. It may not be a household name, but Celestica is quickly gaining attention from investors.
In the first quarter of 2025, Celestica reported revenue of US$2.7 billion, a jump of nearly 20% year over year. Adjusted net earnings came in at US$1.20 per share, beating expectations by a wide margin. Net income reached US$86.2 million for the quarter, and the Canadian stock ended the period with US$308 million in cash.
One of the biggest reasons for Celestica’s recent rally is its growing role in high-demand sectors. From electric vehicles (EV) to cloud infrastructure, the Canadian stock is involved in some of the fastest-growing parts of the global economy. It has also been winning new business and expanding margins. Over the past five years, earnings have grown at an average annual rate of 47.5%, which is exceptional for a company in the manufacturing space. The Canadian stock is up more than 30% in the past month, reflecting renewed investor confidence.
Bottom line
What’s compelling about both Dollarama and Celestica is their ability to grow despite macroeconomic pressures. Dollarama is winning by offering consumers value and consistency in a high-inflation world. Celestica is riding a wave of demand for tech and industrial innovation. Neither Canadian stock relies on flashy headlines. Instead, each delivers steady performance quarter after quarter.
As investors look ahead to the rest of 2025, these two Canadian stocks offer something rare in a choppy market: clarity. Dollarama gives exposure to a stable, cash-generating retail model, while Celestica brings the upside potential of a growing tech manufacturer. For those seeking to stay ahead of the next market move, both deserve a spot on the watchlist.
