TSX’s Long Game: Is It Positioned for Enduring Success?

The TSX is firmly positioned for long-term success as it keeps powering through market headwinds.

| More on:
Hourglass and stock price chart

Source: Getty Images

The Toronto Stock Exchange is poised for robust earnings growth in 2025, demonstrating remarkable resilience despite tariff headwinds. Many TSX-listed companies have not only preserved their strong market positions and stable business models but also innovated or adapted to a complex environment.

Three high-quality stocks emerge as exceptional choices for long-term investors. Beyond overcoming short-term setbacks, these companies offer opportunities to maximize your money’s growth potential.

Defensive legacy business

Empire Company (TSX:EMP.A), a defensive grocery business, should remain a Canadian food retail industry icon for decades. In 2025, Canadian shoppers are supporting the local economy and buying Canadian products over American goods. According to its President and CEO, Michael Medline, this behaviour is becoming sticky.

Medline added that Empire and the industry are not highly or directly affected by tariffs and can roll with the punches. The Sobeys parent company wants to ensure that no unnecessary costs are passed on to customers. Moreover, the sourcing of U.S. products continues to drop.

Empire delivered positive results across all major financial measures in Q4 fiscal 2025. In the three months ending May 3, 2025, sales and net earnings increased 3% and 16% year-over-year to $7.6 billion and $173 million, respectively. Medline is also excited about the potential of Empire’s e-commerce business, which is another catalyst for growth.

The $12.9 billion company’s legacy business has survived countless recessions. For prospective investors, EMP.A is up 29.3%-plus year-to-date, trading at $56.04 per share with a modest 1.6% dividend yield.

Strong foundation for growth

Growth investors should take notice of Firan Technology Group (TSX:FTG). The stock, at $12.07 per share, has outperformed the TSX year-to-date with a 65.6% market-beating return compared to 12.9%-plus. Its trailing one-year price return is 96.3%-plus. This $314.2 million global company offers design, development, prototypes, and manufacturing solutions for aerospace and defence electronic products and subsystems.

Two core business segments, FTG Circuits (high-quality printed circuit boards or PCBs) and FTG Aerospace (high-quality avionic subsystem hardware), are the revenue generators. In Q1 2025, sales and net earnings rose 22.6% and 36.3% year-over-year to $42.9 million and $3.5 million, respectively.

Management said the quarterly results demonstrate FTG’s commitment to laying a strong foundation for continued growth. Strategic investments are ongoing to drive increased shareholder returns in both the near term and the long term.

Renaissance period

AtkinsRéalis Group (TSX:ATRL) is focused on expanding its nuclear business and maintaining its leadership position in the global infrastructure sector. The $16 billion Canadian engineering giant is ready to capitalize on the global shift towards nuclear power.

According to its CEO, Ian Edwards, a significant renaissance is currently underway in the nuclear power sector. AtkinsRéalis achieved a record backlog of $20.9 billion in Q2 2025, including a 230% year-over-year increase in nuclear business backlog. Edwards said the strong quarterly results reflect the ongoing demand for the company’s unique end-to-end engineering services and nuclear expertise. “We are distinctly positioned to capture significant market opportunities,” he added.

As of this writing, ATRL trades at $97.14 per share (+27.4% year-to-date). Market analysts maintain a consistent positive outlook, with buy or strong buy ratings and a 12-month average price target of $110.

Long-term investments

Canada’s largest stock exchange is well-positioned for enduring success, and so are Empire Company, Firan Technology, and AtkinsRéalis. Investors with long-term horizons can take positions in one or all of them.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Firan Technology Group. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Here’s the Average TFSA Balance at Age 55 in Canada

Turning 55? See how a TFSA and a low‑volatility income ETF like ZPAY can boost tax‑free retirement cash flow while…

Read more »

dividends can compound over time
Dividend Stocks

TD Bank’s Earnings Beat & Dividend Hike: Told You So!

The Toronto-Dominion Bank (TSX:TD) just released its fourth quarter earnings and hiked its dividend by 2.9%.

Read more »

senior couple looks at investing statements
Dividend Stocks

Here’s the Average TFSA Balance at Age 54 in Canada

Holding the iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) in a TFSA can maximize your wealth.

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

1 Top-Tier TSX Stock Down 18% to Buy and Hold Forever

Down almost 20% from all-time highs, Canadian Pacific Kansas City is a blue-chip TSX stock that offers upside potential in…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

How to Use Your TFSA to Earn $275 in Monthly Tax-Free Income

Discover how True North Commercial REIT’s government‑anchored leases could help turn a TFSA into monthly, tax‑free income even amid a…

Read more »

dividends can compound over time
Dividend Stocks

Got $3,000? 3 Top Canadian Stocks to Buy Right Now

These three Canadian stocks offer attractive buying opportunities.

Read more »

how to save money
Dividend Stocks

Build a Cash-Gushing Passive-Income Portfolio With just $40,000

Building a passive income portfolio can be as simple as investing in dividend ETFs or prudently in individual stocks more…

Read more »

hot air balloon in a blue sky
Dividend Stocks

3 Elite Canadian Dividend Stocks Ready to Soar Higher in 2026

Let's dive into three elite Canadian dividend stocks, and why they make excellent long-term holdings for those seeking stability and…

Read more »