Investors looking for high-growth opportunities on the TSX have plenty of options, but finding stocks with the potential to deliver massive returns requires focusing on businesses with strong fundamentals and a clear path to expansion. As the economy stabilizes and interest rates decline, certain high-quality growth stocks could be primed to take off in 2025.
Many stocks that were hit hard by economic uncertainty, surging inflation and higher interest rates over the last two years are now in a position to rebound as conditions improve. So, companies with strong business models, expanding market share, and a history of profitability should see renewed investor interest.
The key is to identify those businesses before they take off, allowing investors to buy in while valuations remain attractive.
So, if you’re looking to take advantage of the current market environment, here are two of the most compelling TSX growth stocks that could soar in 2025 and the years to come.
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One of the best growth stocks in the real estate sector to buy now
As the economy improves, many real estate stocks have the potential to recover significantly. However, one of the very best is Granite REIT (TSX:GRT.UN).
Granite REIT has been one of the most resilient real estate investment trusts (REITs) on the TSX, and as interest rates decline, its long-term growth potential only strengthens. Specializing in industrial and logistics properties, Granite benefits from the continued rise in the popularity of e-commerce and supply chain optimization, which fuels demand for warehouses and distribution centres.
Despite recent challenges in the real estate sector, Granite has maintained high occupancy rates across its diverse portfolio, which spans North America and Europe. The REIT continues to expand its asset base while maintaining a conservative balance sheet, putting it in a strong position to capitalize on market tailwinds.
So, as interest rates fall, financing costs will decrease, making it easier for Granite to acquire new properties and expand its footprint. Additionally, a stabilizing economy should drive further demand for logistics space, allowing the REIT to grow both its rental income and property values.
Therefore, with an occupancy rate consistently above 95% and long-term lease agreements in place, Granite offers both stability and growth potential.
Moreover, the REIT’s strong track record of dividend growth makes it even more attractive. Granite has consistently increased its distributions for over a decade, demonstrating its ability to generate steady cash flow. And today, the stock offers investors a yield of roughly 5%.
So, if you’re looking for a reliable stock with the potential to generate passive income and increase significantly in value, Granite is easily one of the best TSX stocks to buy now and hold for years.
A top retailer with significant recovery and growth potential
In addition to Granite, another TSX stock that’s trading cheaply and has attractive long-term growth potential is Canadian Tire (TSX:CTC.A).
Canadian Tire is one of Canada’s most recognized retailers, and while it has faced challenges in recent years due to inflation and shifting consumer spending habits, the company remains a strong long-term growth story. With a diverse portfolio of retail banners, including Sport Chek, Mark’s, and Party City, Canadian Tire has continued to adapt to evolving market trends.
One of the biggest catalysts for Canadian Tire’s growth is its ability to leverage its extensive loyalty program and e-commerce platform to drive customer engagement. The company has invested heavily in digital transformation, streamlining its supply chain, and expanding its private-label product offerings to improve margins.
Additionally, as interest rates decline and consumer spending rebounds, Canadian Tire is well-positioned to benefit. With earnings expected to recover and a solid dividend to reward investors, Canadian Tire is a top TSX growth stock that could see significant upside in 2025 and beyond. In fact, right now, Canadian Tire offers investors a yield of more than 4.9%.
Furthermore, unlike many other retailers, Canadian Tire owns a substantial portion of the properties it operates, providing stability and additional asset value. This real estate ownership gives it a competitive advantage, particularly in an environment where commercial rents are rising.
Therefore, while you can buy Canadian Tire stock as it trades more than 20% off its all-time high, it’s easily one of the best TSX growth stocks to buy now.
