The TSX Index of stocks is up a whopping 15.5% in 2025! That is after an 18% rise in 2024. The average annual return on the TSX is closer to 8–9%, so the market has been outperforming in recent history.
Part of this is due to fund flows leaving U.S. assets and landing in solid investment jurisdictions like Canada. The other part is that many TSX stocks have traded at a distinct discount to U.S. peers. Canadian stocks are enjoying a valuation catch-up trade in many instances.
Given the strong mid-teens returns, it is certainly not an easy task to outpace the market. Yet, here are three quality stocks that are set to beat the market returns by several times this year.
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A TSX retailer tearing it up in the U.S.
Aritzia (TSX: ATZ) has had an incredible year in 2025. So far, it has beaten the market by 3.3 times with a 53% gain. The year did not start out so optimistically. The market was extremely worried about the effects of Trump’s tariffs on Aritzia’s growing U.S. business. The stock fell by almost 40%.
Luckily, the tariff impact was not as severe as anticipated. Likewise, Aritzia was able to mitigate the risk by diversifying its supply chain.
In its most recent quarter, Aritzia grew revenues by 33% and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose 77%. It was a stellar quarter.
EBITDA margins are expected to keep rising as Aritzia gains sales density between in-store and e-commerce in the U.S. It has a steady plan to keep adding stores throughout America. It could easily double its current U.S. store count before the end of the decade.
The stock has been charging upward on strong momentum. It might be getting a little pricey at this point, but that is what you get from great execution and strong results.
A specialized manufacturer going to the moon
MDA Space (TSX: MDA) is another stock that has been soaring this year. It too is up 53% in 2025. In a similar manner, MDA stock plunged on tariff fears and worries about the U.S. government reducing NASA spending. However, management has thoroughly explained that those effects should be limited.
Recent billion-dollar contract announcements have alleviated investor’s hesitations. It has a $5 billion-plus backlog, not including options that could be exercised in the future. MDA has some great opportunities ahead if it can execute.
Demand for high-tech low-orbit satellite constellations continues to rise. MDA is one of only a few manufacturers that can build these satellites. This stock could still have room to run, but it is certainly pricier today.
A small aerospace stock that keeps rising
Firan Technology (TSX: FTG) is a small-cap stock that has been delivering incredible returns in 2025. Its stock is up 60.5% in 2025.
Firan provides specialized parts to the aerospace industry. It has carved out a specialization in cockpit assemblies and circuit boards. However, recent acquisitions are moving it into higher technology aftermarket products. Those acquisitions have also expanded its footprint with the largest airplane OEM in the world.
In its recent quarter, revenues rose by 25% and net income increased 36%. The company is executing very well in this environment. FTG stock only trades for 19 times earnings, which is a discount to other aerospace stocks. This is definitely a stock to follow in the years ahead.
