The TSX Composite Index jumped by 18% in 2024, posting its best performance in three years. Declining interest rates, better-than-expected economic conditions, and prospects of improved corporate earnings led to this surge in the stock market. Considering these factors, it could be the right time for long-term investors to focus on high-quality TSX growth stocks that could benefit from a favourable economic environment in 2025.
In this article, I’ll highlight three such TSX growth stocks that not only ended 2024 on a strong footing but are also well-positioned to sustain their momentum in 2025.
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Bombardier stock
Bombardier (TSX:BBD.B) soared by 83.7% in 2024, posting a four-year winning streak. With this, the shares of the Dorval-headquartered business jet manufacturer currently trade at $99.74 per share with a market cap of $9.9 billion.
In the third quarter of 2024, Bombardier’s total revenue rose 11.7% YoY (year over year) to US$2.1 billion. This growth was largely driven by a record $528 million contribution from its aftermarket services segment, which saw a 28% YoY increase. The company also delivered 30 aircraft during the quarter, keeping its unit book-to-bill ratio steady at one and maintaining a robust backlog of $14.7 billion.
Besides increasing its production capabilities and investing in its service network, Bombardier is also focusing on operational efficiencies, which are likely to improve its profitability further and drive its share prices higher.
Shopify stock
After climbing by 48.3% last year, Shopify (TSX:SHOP) stock has already seen a 7% increase in the first few sessions of 2025. With this, it currently trades at $163.67 per share with a market cap of $211.5 billion.
After facing a temporary slowdown in 2022, Shopify is continuing to post strong financial growth year after year. In the quarter that ended in September 2024, the Canadian e-commerce platform giant delivered a solid 26.1% YoY revenue growth of US$2.2 billion. Notably, its free cash flow margin expanded to 19%, marking the company’s sixth consecutive quarter of over 25% revenue growth, excluding logistics. This clearly reflects Shopify’s ability to deliver robust growth despite macroeconomic challenges while maintaining operational discipline.
As the company continues to focus on making its unified commerce platform with investments in artificial intelligence and advanced machine tools, SHOP stock could continue to surge in the coming years.
Gildan Activewear stock
Gildan Activewear (TSX:GIL), the Montréal-based apparel manufacturer, jumped by 54.4% in 2024 as strong demand for its products continued to strengthen its financials. It currently trades at $67.49 per share with a market cap of $10.3 billion.
Gildan recently reported record third-quarter net sales of $891 million, reflecting a 2.4% YoY increase, with activewear segment sales alone surging by 6% from a year ago. In the latest quarter, its gross margin also expanded by 370 basis points to 31.2% with the help of lower raw material and manufacturing costs.
As Gildan continues to innovate with products like its soft cotton technology and expand globally, its strong fundamentals position it for another winning year in 2025, making it an attractive stock to consider for growth investors.
