The TSX is a remarkable place, filled with opportunities, as well as pitfalls. Unfortunately, it can be quite difficult to tell these apart, especially after seeing a TSX stock breakout. Many investors pour money into these stocks thinking they’ll continue to take off, only to see them drop further down.
Yet there are opportunities for further growth. The TSX30 is filled with them, in fact! Some companies that took off this year still have room for more. So today, let’s look at three Canadian TSX breakout stocks that just made a massive leap, yet looking a little further down the TSX30 today.
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CCO
First up we have Cameco (TSX:CCO), a uranium producer that has been surging in share price. Cameco stock is up about 277% in the last three years as of writing and now boasts the position of one of the world’s largest uranium producers. Its market position has only been getting better as the company owns a 49% equity stake in Westinghouse, a major nuclear services business.
Furthermore, it’s coming off strong second quarter earnings. Cameco posted $321 million in net earnings, with its uranium business seeing a 46% increase in earnings before tax compared to last year. Furthermore, Westinghouse contributed meaningfully, giving the company even more of a runway for future growth.
The issue here is price. Cameco stock still trades at a higher price to earnings ratio, though analysts continue to be quite bullish. What’s more, there is quite a low dividend, so it’s certainly not an income stock. Yet if you’re an investor looking for an investment in the future or uranium, Cameco stock still belongs on your watchlist.
BDT
Next up we have Bird Construction (TSX:BDT), with shares up 330% in the last three years alone! The Canadian construction company boasts operations from coast to coast, with a potential construction boom making it look like an incredibly bullish stock – especially with a focus on industrial, commercial, and civil infrastructure projects.
These projects include everything from health care to, importantly, data centres, as well as renewables, mining, and transportation. And it’s not slowing down, expanding to achieve a record backlog in projects along with margins. It second quarter backlog rose to $4.6 billion, up 25%, while also authorizing a solid buyback program in the process.
What’s more, investors can latch onto a monthly dividend of $0.07, or $0.84 per year. Not huge, but it was still a 50% increase from last year. Again it’s not cheap trading in the mid-teens on a P/E ratio basis. However, that’s supported by a 40% payout, so investors could see that dividend rise again.
BBD.B
Finally, we have Bombardier (TSX:BBD.B), an airplane manufacturer that’s seen shares absolutely surge 514% in the last three years. The company’s refocus on its jet plane arm has been nothing but extraordinary, but the question is whether the TSX stock can keep it up, as with great growth comes great responsibility.
Yet its business jets have been growing, yet so too has its aftermarket and services, as well as its defence footprint. These are key drivers for multi-year income. During the most recent quarter, Bombardier stock announced a US$1.7 billion order plus a service deal, with options for 70 more. As deliveries start in 2027, there is a massive pipeline of revenue to look forward to.
Yet the TSX stock is more of a moderate buy, as much of the growth is already priced in. What’s more, there is no dividend, so investors won’t exactly be paid to wait. Still this is one to keep on your watchlist as the backlog not only grows, but is executed.
Bottom line
All three of these TSX stocks have been breakouts over the last few years. However, there could be more to come for all three as well. Whether it’s the future of uranium, a construction boom, or a jet plane backlog, these are solid investments investors will want to add to their watchlist.
