The TSX’s 2025 Story: A Winner, Surprise Star, and Sleeper Pick

Celestica and Aritzia led the TSX30 rally while sleeper Stella Jones offers value, so here’s the quick read on momentum, risks, and upside into 2026.

| More on:
senior couple looks at investing statements

Source: Getty Images

Key Points

  • Celestica's data‑centre wins drove 21% revenue growth and margin expansion, but demand cycles and trade risks could slow its momentum.
  • Aritzia's U.S. expansion boosted revenue and EPS, with net income jumping 168%, though retail and inventory risks remain.
  • Stella Jones trades cheaply with stable margins and a dividend, offering upside if sales recover beyond conservative guidance.

The TSX30 recently hit headlines, and there were some pretty obvious winners in there. These were, in many cases, related to megatrends, such as artificial intelligence (AI) and technology enablers.

However, not all of the stocks listed may have been on an investor’s Bingo card. Some could even provide investors with a look at what to watch in 2026! So, let’s take a look at the winners, surprises, and a sleeper choice on the TSX today.

Winner: Celestica

It’s clear that Celestica (TSX:CLS) was an all-star in 2025. The company saw shares surge this year thanks to its link to AI. The company creates tech hardware that supports the storage in data centres. It’s already been a premium growth name, but could potentially maintain that momentum into 2026.

This can be done, but the large surge is likely behind the tech stock. Even still, the second quarter and guidance were strong. Celestica reported revenue of US$2.89 billion, up 21% year over year. Its operating margin improved to about 9.4% versus 5.6% last year. What’s more, it purchased about 600,000 shares for US$40 million, showing there’s confidence in the future.

However, the demand for the stock could wane. CLS stock is exposed to capital expenditure cycles in cloud, networking, and data centre infrastructure. If spending slows, so will revenue. Tariffs and trade supplies are also a risk, along with execution in the growing segments. Plus, it’s a premium price, so perhaps a smaller stake would be warranted.

Surprise star: Aritzia

Then we have Aritzia (TSX:ATZ), a star that continues to surprise year after year. Just when we think that the retailer can’t possibly grow any further, it does! The company has been expanding through online and U.S. positioning. More than half of new revenue growth comes from the U.S. now. The high-demand U.S. fashion and retail environment gives the retail stock a huge lift, one that Canadian brands simply cannot touch.

This was seen during the most recent earnings report, though its next earnings are due quite soon. During the first quarter of 2026, Aritzia stock reported net income of $42.4 million, up a whopping 168% year over year! What’s more, gross profit increased 42.5% to $312.8 million. It wasn’t just sales either, with the retail stock citing “smart spending,” lower warehouse costs, and better inventory.

Now, again, the growth story is ongoing, but may be more in the rearview. Investors will know that retail and fashion can be volatile. What’s more, inventory and markdowns come with risk, as do currency and cross-border costs. Plus, it’s a capital-intensive area. So, while Aritzia stock has proven worthy of an investment, a smaller stake might be smart.

Sleeper: Stella Jones

Finally, we have sleeper stock Stella Jones (TSX:SJ). Not only is SJ stock growing, but there’s still more upside to come for the company. It may be less flashy, but the consistency of margins, transparent guidance, and defensive nature of the pressure-treated wood sector can’t be denied.

During its recent quarterly results, SJ stock reported sales were down, lowering its full-year guidance on revenue to be conservative. Though even with revenue falling, margins were stable, suggesting cost management and resilience in the company’s pricing and operations.

Now, those low expectations offer upside. The market isn’t pricing in strong growth, so a positive surprise can lead to more returns. What’s more, it’s an essential sector as a major provider of pressure-treated wood and infrastructure materials. For now, shares are down from 52-week highs, it holds a 1.55% dividend yield, and trades at just 13.44 times earnings with a 0.32 beta.

Bottom line

Altogether, these are three strong Canadian stocks right now. While two seem to have already been showing strength, SJ stock has more to come. The company has already surged in share price this year but has come back down to earth. That leaves a great opportunity for today’s investor — one you may not want to miss.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Celestica and Stella-Jones. The Motley Fool has a disclosure policy.

More on Investing

businessmen shake hands to close a deal
Energy Stocks

Strong Buy: 1 Energy Stock Set for a Major Upswing in 2026

This energy stock is poised for a major upswing in 2026 after winning a bidding war.

Read more »

Abstract Human Skull representing AI
Tech Stocks

3 Reasons Shopify Stock Could Set a New All-Time High in 2026 

Shopify stock dipped 11% from its all-time high of $253.10. SHOP stock's valuation is inflated, but it has the potential…

Read more »

chip glows with a blue AI
Tech Stocks

1 High-Potential Stock That Too Many Canadians Are Overlooking

Celestica (TSX:CLS) stock took a big hit, but shares might be worth watching on the way down this winter.

Read more »

chart reflected in eyeglass lenses
Energy Stocks

Warren Buffett Liked This Canadian Stock, and I Still Do

Let's dive into one of Buffett's past Canadian stock picks, and why Suncor (TSX:SU) still looks like a solid pick…

Read more »

data analyze research
Tech Stocks

I Can’t Wait to Buy This Stock (but I’m Being Patient Anyway)

Shopify (TSX:SHOP) looks great, but I'm not rushing to load up after the recent correction.

Read more »

Muscles Drawn On Black board
Dividend Stocks

What Sets Them Apart:  2 Aerospace Stocks With Standout Strengths

This pair of Canadian aerospace stocks is part of a rapidly growing industry that expects another year of growth in…

Read more »

hand stacks coins
Dividend Stocks

Want A 5% Yield? The 3 TSX Stocks to Buy Today

These three quality dividend stocks can boost your passive income.

Read more »

A worker gives a business presentation.
Dividend Stocks

Which Dividend Stocks in Canada Can Survive Rate Cuts?

Here's how your dividend stocks may be impacted by interest rate cuts and how to use the situation to your…

Read more »