The Toronto Stock Exchange (TSX) revealed the latest edition of its annual TSX30 today, a landmark occasion each year for Canadian equities. More than that, however, the firms stand out as some of the world’s biggest performers — worth considering for any investor, Canadian or otherwise, with some serious trends worth examining for those interested in Canada equities.
Each year, the exchange updates its list of star Canada-heavy firms based on the prior three years of data. In 2024, that included firms driving electrification like Hammond Power Solutions, Inc. (TSX:HPS.A), with the firm returning to the list.
This year’s annual ranking includes firms responsible for $358 billion in new market value over the last three years. The membership also provided a 431% average return in that time across a variety of sectors — almost doubling the previous year’s 234% average.
Leading the way in this year’s edition is tech firm Celestica Inc. (TSX:CLS). Boosted by global demand for AI infrastructure, the firm has provided a red hot 1,599% dividend-adjusted share price increase to its investors in the list’s three year period. Hammond Power Solutions returned in the top five, as did TerraVest Industries, Inc. (TRRVF). What trends, then, can investors take from the list’s biggest risers and standout performers?
Commodities Continue to Roll On
The TSX30 this year has strong representation from companies active in the “real economy” sectors. That includes segments like industrials, critical minerals, and infrastructure. Mining companies make up 17 of the 30 names, speaking to Canada’s place in the global mining sector.
Four firms focus on critical minerals, specifically. Cameco Corporation and 5N Plus Inc, for example, focus on uranium and bismuth/gallium, respectively, benefiting from demand for clear energy minerals.
Gold equities took center stage this year. And that is also reflected in the index, with half of the 30 focused on gold. As global uncertainty has risen, Canada’s mining firms and other gold equities have benefited. Names including Lundin Gold Inc. (775%), New Gold Inc. (394%), and Kinross Gold Corp. (+394%) have benefited.
The Real Economy Takes Center Stage
In industrials, five major names made the list, including the likes of TerraVest Industries and Hammond Power Solutions. Among that number are a few that are actively engaged in nation-building and other overseas infrastructure projects. Domestic government spending on major projects and demand for engineering services abroad have driven performance for names like AtkinsRealis Group (SNCAF).
Together, those areas taking a bigger role in the TSX30 reflect a continued shift to value investing. Companies offering resilience in an uncertain global economy and steady, positive cash flow could appeal to both Canadian and international investors.
Global Views Continue to Pay Off
From that Canadian base, those companies have competed and won in markets around the world. Shopify (SHOP), based in Ottawa, provides a notable example. SHOP competes with huge names like Amazon (AMZN), with the firm working with major brands like Tesla (TSLA) and Kraft Heinz (KHC). The company has more than 800 million worldwide customers.
The Canadian-headquartered firm and its nimble but effective platform have helped it compete worldwide. From the U.S. to Europe and East Asia, SHOP has returned 290% on TSX30’s Three-Year Dividend-Adjusted Share Price Performance metric
That global reach from SHOP as well as the gold equities and energy firms named above speak to the weight class in which the TSX30 names operate — and to the appeal they may hold for foreign investors.
Together, the TSX30 for this year sums up a few key trends not only impactful for Canadian investors, but for U.S. and global investors, as well. As uncertainty continues to loom, those firms can provide some intriguing sources of diversification — and upside.
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