The Toronto Stock Exchange (TSX) is on fire in 2024, hitting new highs and welcoming fresh faces to its ranks. If you’ve got $7,000 burning a hole in your pocket and you’re itching to invest, you’re in luck! The exchange released a list of 30 best-performing stocks in September, providing investors a scoop on some of the hottest Canadian growth stocks recently giving investment portfolios a serious boost.
Led by Hammond Power Solutions (TSX:HPS.A) stock with a 928% total return in three years to June 30, 2024 and anchored by Alamos Gold (TSX:AGI), a gold mining stock that’s outperforming industry peers, the TSX30 list for 2024 features proven compounders of yesteryears. While these top TSX stocks delivered average total returns (dividend-adjusted growth rates) of 234.1%, they did so while concentrating on organic growth and funding mergers and acquisitions deals without raising a lot of dilutive capital.
Let’s dive into two standout performers from the TSX30 list in 2024 – a roundup of Canada’s largest securities exchange’s top-performing stocks over the past three years.
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Hammond Power Solutions stock: Electrifying investor portfolios
First up, we’ve got the crown jewel of the TSX30 list – Hammond Power Solutions. This company isn’t just leading the pack; it’s leaving others in the dust with a mind-boggling 928% return over three years. But hold on, the stock has since skyrocketed even further, delivering a jaw-dropping 1,258% three-year total return!
So, what’s Hammond Power’s secret sauce? The company manufactures electricity transformers, which may not be as exciting as a hot-tech offering. But here’s the kicker – as countries worldwide scramble to upgrade their power grids and go green, Hammond’s products are selling like hotcakes. And with the artificial intelligence (AI) boom driving demand for power-hungry server equipment, the need for modern electric grid gear is through the roof.
Hammond Power isn’t resting on its laurels, either. The top TSX stock is expanding factory capacity in Mexico and eyeing new markets, which could keep its growth engine humming along nicely. If you’re looking for a stock with serious momentum, Hammond Power Solutions stock deserves a spot on your watchlist.
Alamos Gold stock: A golden opportunity to get richer
Next up, we’ve got Alamos Gold, bringing up the rear of the TSX30 list with a “mere” 134% return over three years. But don’t let its position fool you – this gold miner is still outshining many of its top gold stock peers.
Alamos has a knack for keeping costs low while boosting productivity. That’s a winning combo in any business, but it’s especially potent in gold mining. With gold prices hitting all-time highs and approaching US$2,700 an ounce, Alamos is in a prime position to cash in.
The company recently acquired the Magino mine in Ontario, bumping up its annual gold production from 500,000 ounces to 600,000 ounces. And its not stopping there – management’s got its sights set on pumping out over 900,000 ounces of gold a year in the near future, with dreams of breaking the million-ounce mark.
Here’s where it gets really interesting: Alamos’s all-in production costs are lower than the industry average, and the company’s still discovering lower-cost ounces. If it can keep that up while gold prices stay high, we could see its profits – and stock price – soar even higher.
Since June 30, Alamos has continued its winning streak, with returns now hitting 203.4%. Despite its stellar performance, the top Canadian gold stock still looks undervalued. With a forward price-to-earnings (PE) ratio of 20 and a price-earnings-to-growth (PEG) ratio of 0.6, Alamos could be a bargain given its earnings growth potential.
Investing your $7,000 wisely
Now, before you rush off to pour all your cash into these two top Canadian stocks, remember to diversify your holdings. While Hammond Power Solutions stock and Alamos Gold stock have shown impressive historical performance, it’s always wise to spread your bets.
Consider allocating your $7,000 across a mix of sectors. You might put some into the booming energy sector, some into precious metals, and the rest into other strong performers from the TSX30 list. Or join a professional investing service that may help discover and track potential top-performing stocks daily and recommend those with potentially the best risk-reward ratios.
The Canadian stock market is brimming with opportunities in 2024. With careful selection and a bit of courage, your $7,000 investment today could grow into a tidy sum tomorrow. Happy investing, Fools!
