Which Canadian Stocks Will Boom in 2025?

In this article, we will discuss which Canadian stocks will boom in 2025.

Considering the robust underlying businesses as well as strong growth prospects, these 3 Canadian stocks will boom in 2025.

Long-term investing involves holding assets for more than three years, offering investors a way to ride out short-term market fluctuations while benefiting from compounding returns. This approach not only minimizes transaction costs but also demands less active monitoring of market movements. With that in mind, here are three compelling Canadian stocks to consider for a long-term portfolio that seeks strong and sustainable growth.

1. Dollarama (TSX:DOL)

Dollarama, Canada’s leading discount retailer, stands out as a solid long-term investment due to its consistent performance and scalable business model. By leveraging a direct-sourcing approach, the company cuts out intermediaries and enhances its pricing power. Its efficient logistics framework allows it to stock a broad range of value-priced items, which has translated into resilient same-store sales even in a tough economic climate.

Over the past 14 years, Dollarama has achieved impressive compound annual growth in revenue and earnings of 11.4% and 17.9%, respectively. This has translated into a staggering total return of about 4,490%—an annualized return of 31.4% over 15 years.

Looking ahead, Dollarama plans to expand its domestic store count by 584 locations, targeting 2,200 stores in Canada by 2034. It also owns a 60.1% stake in Dollarcity, a growing Latin American retail chain with 632 stores and plans to scale to 1,050 by 2032. Additionally, Dollarama is venturing into Australia through a proposed $233 million acquisition of the Reject Shop, which operates 390 stores. These strategic moves position Dollarama for continued financial momentum and share price appreciation in the years ahead.

2. Celestica (TSX:CLS)

Celestica, a global provider of design and supply chain solutions, has been on a remarkable growth trajectory, delivering returns of over 1,070% in the past three years—equivalent to an annualized gain of 127.3%. Much of this success stems from its strategic exposure to the fast-evolving artificial intelligence (AI) sector, which has driven increased demand for AI infrastructure and related technologies.

The company is actively innovating to meet the sophisticated needs of its clients, helping fuel robust financial results. Management expects revenue to climb by 12.4% and adjusted earnings per share to grow by 28.9% in 2025. Despite this strong outlook, the stock remains attractively priced, trading at just 1.2 times forward sales, suggesting significant upside potential as AI adoption accelerates.

3. Savaria (TSX:SIS)

Savaria, a leading provider of mobility and accessibility solutions, is well positioned to benefit from demographic tailwinds. With a global footprint and a broad product lineup that supports individuals with physical challenges, Savaria is set to gain from the aging population and increasing global demand for home and public accessibility improvements.

To support this growth, the company continues to enhance its manufacturing and distribution capabilities. Its recent acquisition of Western Elevator boosts its presence in the premium residential elevator market. In parallel, Savaria is pursuing operational efficiency initiatives to drive profitability. Investors are also rewarded with a monthly dividend, which currently yields 2.8% based on the June 3 share price. Given its solid fundamentals and expanding market opportunity, Savaria represents a promising long-term play.

Bottom Line

While these 3 Canadian stocks will boom in 2025, they also offer a distinct growth narrative backed by strong financials and long-term expansion strategies. For investors looking to build lasting wealth, these stocks present compelling opportunities to benefit from both resilience and innovation over time.