Don't Miss AI's Third Wave
When the market is moving, smart investors take action. The TSX Composite has climbed 23% in the past 12 months, and while some macroeconomic uncertainties remain, the big picture remains bullish. Growth stocks that are already showing strong momentum could continue to outperform, making this an ideal time to position yourself for long-term gains.
Momentum investing mainly relies on identifying the right stocks at the right time — especially those with strong fundamentals, a solid growth track record, and growth potential. In this article, I’ll highlight two of the best TSX momentum stocks to buy right now before their surge continues.
Aritzia stock
And speaking of strong momentum, Aritzia (TSX: ATZ) could be an excellent stock to consider on the Toronto Stock Exchange now. This Vancouver-headquartered fashion designer and retailer offers stylish and high-quality apparel to consumers. With a growing footprint in North America, the company operates both in brick-and-mortar locations and a thriving e-commerce platform.
Interestingly, ATZ stock has surged over 80% in the last year to currently trade at $68.26 per share, giving it a market cap of $7.7 billion. Unlike many established retailers, Aritzia doesn’t currently pay a dividend, as it’s focusing on reinvesting profits to fuel its expansion.
Digging into the latest numbers, Aritzia’s sales jumped by 11.5% YoY (year over year) to $728.7 million in the quarter ended in November 2024, while net profit soared 72% from a year ago to $74.1 million. Segment-wise, the company’s U.S. business was the standout performer for the quarter, with its sales rising 24% YoY, clearly reflecting Aritzia’s expanding reach in a highly profitable market. Even better, its gross profit margin expanded by 430 basis points last quarter to 45.8%, showing that the company is managing costs efficiently while growing its top line.
It is important to note that the Canadian retailer is aggressively expanding in the U.S. market, with plans for 12 new boutiques and the repositioning of three boutiques. At the same time, it’s doubling down on e-commerce, investing heavily in digital marketing to keep online sales climbing. Given these strong fundamentals, I expect ATZ stock to continue climbing higher.
Equinox Gold stock
Equinox Gold (TSX:EQX) could be another amazing momentum stock to consider buying on the TSX today. This Vancouver-based gold mining company operates seven mines across the Americas and has been making big moves to scale up production.
EQX stock has surged nearly 60% in the last year and is currently trading at $9.53 per share, with a market cap of $4.3 billion.
The company just delivered a record-breaking 621,870 ounces of gold production in 2024, with a standout 213,960 ounces in the fourth quarter alone, which stood out as its strongest quarter yet. The Greenstone Gold Mine, one of its key assets, produced over 111,700 ounces in its first operational year, and the company ended the year with a healthy cash balance of US$240 million.
With its plans to ramp up Greenstone’s full capacity and push annual production past one million ounces, Equinox Gold’s financial growth is expected to accelerate in the years to come. If gold prices stay stable, this stock could keep its strong momentum going in the coming years.
