Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Despite a rocky road for much of 2024, the overall performance of the Toronto Stock Exchange (TSX) has been quite good. As of early September, only the communication sector (-4.1%) among the 11 major industries is in the red. Additionally, some individual stocks have risen against the trend. For investors seeking outperformance in 2024 and beyond, two high-flying TSX stocks that are worthy of strong consideration are CES Energy Solutions (TSX: CEU) and Héroux-Devtek (TSX: HRX). Both of these growth stocks show no signs of slowing down and are likely to be big winners this year.
First is CES Energy. CES Energy is a small-cap stock that has outperformed its larger peers in the energy sector. Priced at just CAD 7.62 per share, it has seen a remarkable year-to-date increase of 123.2%, in addition to a 1.6% dividend. This company, valued at CAD 1.8 billion, provides technologically advanced consumable chemical solutions for the oil and gas industry in North America.
The record performance in Q2 of 2024 indicates that CES’s light capital expenditure and light asset consumable chemicals business model is proving effective. In the three months ending June 30, 2024, revenue rose by 4% year-over-year to a record CAD 553.2 million, while net income increased by 42% to CAD 48.1 million.
The strong fundamentals in the energy sector, supported by key drilling and production activities for oil and gas, remain a positive factor for the stock.
Next is the industrial stock Héroux-Devtek. The stock is priced at CAD 31.35 and has risen 106.3% year-to-date. If you had invested CAD 15,200 (1,000 shares) in this stock at the end of 2023, your investment would have nearly doubled, now worth CAD 31,350.
The company focuses on the aerospace industry, specializing in landing gear, actuation systems, components, and related services. Despite a challenging inflationary environment, sales remain strong. For Q1 of 2024, revenue increased by 23.7% year-over-year to CAD 174 million.
During the same quarter, operating income and net income rose by 159.1% and 216%, reaching CAD 19.4 million and CAD 12.6 million, respectively. In addition to strong quarterly results, Héroux-Devtek’s President and CEO Martin Brassard noted that both the civil and defense markets are experiencing continuous growth.
