After a challenging week, Canadian equity markets have rebounded, with the S&P/TSX Composite Index climbing 1.7% this week. Year to date, the index has gained 23%. Meanwhile, the following two stocks have outperformed the broader market, delivering returns of over 100% this year. Let’s take a closer look at their recent performances and growth outlooks to determine whether they still present attractive buying opportunities.
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Celestica
Celestica (TSX: CLS), which offers data centre infrastructure and advanced technology solutions, is one of the top performers this year, with returns of over 250%. Its impressive quarterly performances and healthy growth prospects amid its exposure to the high-growth artificial intelligence (AI) sector have improved investors’ sentiments, driving its stock price higher.
In its recently reported third-quarter results, the company delivered strong growth, with revenue and adjusted earnings per share (EPS) increasing by 27.6% and 51.9%, respectively. Its adjusted operating margin also expanded by 80 basis points to 7.6%. The robust performance of its Connectivity & Cloud Solutions (CCS) segment, driven by a 79% surge in Hardware Platform Solutions revenue, more than offset a 4% decline in Advanced Technology Solutions (ATS) revenue, fueling overall top-line growth.
Moreover, Celestica’s management remains optimistic about future customer demand, supported by ongoing investments in expanding artificial intelligence (AI) data centre infrastructure. Building on its strong third-quarter results and solid growth outlook, the company has raised its 2025 guidance and introduced a robust outlook for 2026. The revised 2025 projections call for revenue and adjusted EPS growth of 26.4% and 52.1%, respectively, on a year-over-year basis. Meanwhile, its 2026 guidance implies revenue growth of 65.8% and adjusted EPS growth of 111.3% compared to 2024 levels.
Meanwhile, Celestica’s recent strong rally has lifted its valuation, with its next 12-month (NTM) price-to-sales and price-to-earnings ratios now at 2.5 and 42.4, respectively. While the stock may appear expensive, its robust growth outlook and consistently strong financial performance justify the premium, making it an attractive buy even at current levels.
5N Plus
5N Plus (TSX: VNP) develops, manufactures, and markets specialty semiconductors and performance materials that serve a range of high-growth industries, including renewable energy, space, security, pharmaceuticals, medical imaging, and industrial applications. Supported by its quarterly performances and healthy growth prospects, the company has delivered an impressive return of over 180% this year.
In its recently reported third-quarter results, 5N Plus’s revenue grew 33% to $104.9 million, which was a 10-year high. Strong sales of its specialty semiconductors, driven by increasing demand in the terrestrial renewable energy and space solar power markets, along with higher pricing for bismuth-based products within its performance materials segment, contributed to its sales growth.
Along with robust top-line growth, 5N Plus’s gross margin expanded by 580 basis points, driving an 86% year-over-year increase in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to $29.1 million. Net income surged 184% to $18.2 million compared to the same quarter last year. The company also strengthened its balance sheet by reducing net debt to $63.3 million from $100.1 million at the start of the year, thereby lowering its net-debt-to-EBITDA ratio to a healthy 0.74.
Looking ahead, 5N Plus expects continued strong demand for specialty semiconductors, supported by the growing terrestrial renewable energy sector and space solar power market. With its global presence, strong sourcing capabilities, and high-quality product portfolio, the company is well-positioned to capitalize on this rising demand amid a shifting geopolitical landscape. Moreover, its valuation remains attractive, with a NTM price-to-earnings ratio of 25.2, making 5N Plus a compelling investment opportunity.
