The possibility of more interest rate cuts in the near term is driving the S&P/TSX Composite Index to new heights in 2025 as it recently climbed to a fresh all-time high of 27,921. In such a bullish scenario, it is easy to think that you have missed the bus, but the truth is that strong opportunities keep showing up for investors who know where to look.
While some stocks may look overextended, others are still trading at levels that leave plenty of room for growth. Their mix of rising earnings, expansion plans, and sector tailwinds makes them hard to ignore. In this article, I’ll spotlight two top Canadian stocks to buy that have been delivering impressive results and have the right ingredients to keep rewarding their investors.
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Sprott stock
First up is Sprott (TSX: SII), a top stock that has turned sector tailwinds into record-high assets under management. It’s a global asset manager based in Toronto, specializing in precious metals and critical materials investments. After rallying 51% so far in 2025, SII stock currently trades at $91.31 per share, giving it a market cap of about $2.4 billion. It offers a quarterly dividend with an annualized yield of about 1.8% at the current market price.
The recent rally in Sprott stock could mainly be attributed to growing investor allocations to its physical trusts and strong performance in its managed equities segment. In the second quarter, Sprott’s assets under management climbed 27% YoY (year-over-year) to a record $40 billion with the help of market value gains and $1.2 billion in net sales.
Last quarter, Sprott’s management fees also rose 16% YoY to $44.4 million, and net fees jumped 54% to $53.2 million. Similarly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 14% YoY to $25.5 million, reflecting higher average assets under management and performance fee crystallizations.
Moreover, Sprott’s long-term growth outlook is supported by its focus on expanding product offerings related to precious metals and critical materials, which continue to attract investor interest as both safe-haven and growth assets. That’s why Sprott remains a top Canadian stock to buy for investors seeking strong returns on their investments.
TerraVest stock
My second pick currently is TerraVest Industries (TSX: TVK), an industrial stock that has been rallying aggressively of late due mainly to its effective acquisition strategy and improving profitability. The company mainly focuses on manufacturing heating products, propane and natural gas liquids transport vehicles, and storage vessels. Up 48% year to date, TVK stock now trades at $165.41 per share with a market cap of about $3.6 billion.
In the latest quarter ended in June 2025, TerraVest’s revenue jumped 45% YoY to $311.5 million with the help of contributions from its newly acquired businesses, including Entrans, Advance Engineered Products, and Aureus. Even excluding these acquisitions, the company’s base portfolio sales rose 14% YoY last quarter, led partly by higher demand in containment equipment, domestic compressed gas tanks, and certain transportation equipment lines. As a result, its quarterly net profit climbed 30% YoY to $33.4 million.
Besides its strong acquisition strategy, TerraVest also continues to invest in efficiency improvements and new product capabilities. This combination of aggressive expansion, improved margins, and solid demand makes it another top Canadian stock to buy in the current market rally.
