Celestica
Although Celestica (TSX:CLS) has already delivered an impressive return of over 250% this year, and I think the upward momentum could continue. With the growing adoption of artificial intelligence (AI), hyperscalers are ramping up investments in large-scale data center infrastructure to meet rising demand for computing power, expanding Celestica’s addressable market. Meanwhile, the Toronto-based company continues to expand its product portfolio by launching new and innovative solutions to meet the evolving needs of its customers.
Building on strong third quarter performance and improving growth prospects, Celestica management has raised its 2025 guidance and issued an optimistic 2026 outlook. The revised guidance for 2025 predicts a 26.4% increase in revenue and a 52.1% increase in adjusted earnings per share (EPS). Additionally, the company expects to generate approximately $425 million in free cash flow this year. Looking ahead, 2026 guidance points to revenue growth of 65.8% and adjusted earnings per share of 111.3% compared to 2024 levels. Despite this robust growth outlook, Celestica currently trades at just 2.5 times analysts’ forecast revenue for the next four quarters, making it an attractive buying opportunity.
Dollarama
Second on my list is Dollarama (TSX:DOL), a defensive stock with a growth bias. The discount retailer has adopted a superior direct sourcing model, eliminating intermediary costs and increasing its bargaining power. Additionally, streamlined logistics have reduced costs, allowing the company to offer a wide range of consumer products at competitive prices. Backed by its attractive offering, the company maintains healthy same-store sales even in a challenging macroeconomic environment.
Additionally, Dollarama continues to expand its footprint, with the goal of increasing its store count to 2,200 in Canada and 700 in Australia by the end of fiscal 2034. Meanwhile, its subsidiary, Dollarcity, is also expanding its presence in Latin America, with plans to expand its store network from 658 to 1,050 locations by the end of fiscal 2031. In addition, Dollarama has an option to increase its ownership stake in Dollarcity from 60.1% to 1,050 locations. 70% by 2027. These strategic expansion initiatives could strengthen Dollarama’s financial performance in the coming years, potentially fueling further share price growth.
Enbridge
My final choice is Enbridge (TSX:ENB), a leading dividend stock known for its stable, contracted business model, consistent dividend growth and attractive yields. The company transports oil and natural gas under a toll framework and long-term take-or-pay contracts, while also operating a highly regulated natural gas company. In addition, Enbridge owns 41 renewable energy assets and sells the electricity it produces through long-term power purchase agreements.
Therefore, the Calgary-based company’s financials are less sensitive to economic cycles and market volatility, generating stable and predictable cash flows that have made it possible to consistently increase dividends. It has consistently increased its dividend since 1995 at an annual growth rate of 9% and now offers an attractive forward yield of 5.52%.
Additionally, Enbridge added $3 billion in projects in the recently reported third quarter, increasing its secured capital reserves to $35 billion. The company plans to invest between $9 billion and $10 billion annually to finance these projects, expanding its asset base and improving financial performance. Supported by these growth initiatives, management expects to return between $40 billion and $45 billion to shareholders over the next five years, making Enbridge an attractive long-term investment.
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