Written by Sneha Nahata at The Motley Fool Canada
To secure a stable financial future through investments, it is important to target stocks that are ideally positioned to take advantage of long-term trends driving sustained demand. These companies should also demonstrate resilience to economic fluctuations. Such TSX stocks provide opportunities for significant growth, supported by strong fundamentals, consistent earnings, and solid cash flows. Here are three TSX stocks to consider for long-term gains.
Brookfield Asset Management (TSX:BAM)
Brookfield Asset Management is a promising TSX stock for generating long-term gains. This alternative asset manager has access to substantial capital, enabling investments in top-tier assets and businesses across diverse geographies and industries. This extensive exposure to high-growth sectors, along with consistent earnings and a light asset structure, positions Brookfield for strong returns over time.
In 2024, Brookfield successfully raised $135 billion in new capital, greatly enhancing its investment capabilities. With stable expenses and a growing capital base, the company has managed to achieve significant revenue growth while also improving profit margins.
Dollarama (TSX:DOL)
Another excellent TSX stock to consider for long-term investment is Dollarama. This company provides stability, income, and growth in varying economic situations, making it a reliable choice for steady returns. Dollarama excels with its value pricing strategy, offering essential items at fixed low prices, which attracts a wide customer base and ensures consistent traffic.
Dollarama has experienced a notable increase in its stock price, surging by 301.5% over the last several years and delivering an impressive average annual return close to 32%. The company’s financial strength remains robust, supported by its strategic store expansion, effective pricing, and commitment to cost efficiency, positioning it for future growth and sustained dividend increases.
Celestica (TSX:CLS)
Celestica stands out as an attractive long-term investment, particularly due to its exposure to the booming AI sector. As a leader in manufacturing and supply chain solutions, Celestica is benefiting from increased investment in AI-related data centre infrastructure, propelling its share price upward. The company’s revenue growth is expected to be driven by strong demand for its networking products, especially from Hyperscaler clients.
The demand for Celestica’s advanced 400G networking switches is robust, and the upcoming release of its 800G switches is anticipated to fuel further growth. With the continuing adoption of AI and a recovery in its industrial segment, Celestica is well-positioned to yield significant long-term gains.
In conclusion, each of these TSX stocks—Brookfield Asset Management, Dollarama, and Celestica—offers potential for strong capital appreciation and stable dividend income, making them suitable for investors seeking long-term success.
