Two TSX-listed stocks, Celestica (TSX:CLS) and 5N Plus (TSX:VNP), have dramatically outperformed the Canadian market this year, with staggering gains of over 250% and 180%, respectively. This surge is fueled by robust quarterly results and promising growth outlooks. Their impressive runs contributed to a broader market rebound this week, with the S&P/TSX Composite Index climbing 1.7%, bringing its year-to-date gain to 23%.
Celestica, a provider of infrastructure and advanced technology solutions for data centers, has seen its shares skyrocket. The company’s recent Q3 earnings report was exceptionally strong, revealing a 27.6% jump in revenue and a 51.9% increase in adjusted earnings per share. Its adjusted operating margin also expanded to 7.6%.
This performance was primarily driven by its Connectivity & Cloud Solutions (CCS) segment, where revenue from hardware platform solutions soared by 79%. This growth effectively offset a slight decline in its Advanced Technology Solutions segment. Management expressed optimism about continued investment in AI data center infrastructure, leading them to raise their 2025 financial guidance and issue a strong outlook for 2026.
Despite the massive rally pushing its valuation higher—now trading at a forward P/E ratio of 42.4—the company’s solid growth trajectory and consistent execution are seen as justifying the premium. Many market observers consider the stock still attractive for long-term investors betting on the AI boom.
5N Plus, which specializes in developing and manufacturing specialty semiconductors and performance materials, has also been a top performer. Its products are essential in renewable energy, aerospace, and medical imaging. The stock’s rise follows a record Q3, with revenue hitting CAD $104.9 million—a decade high and a 33% year-over-year increase.
The growth was largely propelled by strong demand for its specialty semiconductors in the renewable energy and space solar markets, complemented by higher selling prices for its performance materials. profitability improved significantly, with adjusted EBITDA surging 86% and net income skyrocketing 184%. The company has also strengthened its balance sheet, reducing its net debt from CAD $100.1 million at the start of the year to CAD $63.3 million.
Looking ahead, 5N Plus is well-positioned to benefit from long-term trends in renewable energy and space technology. With a forward P/E ratio of around 25.2, its valuation remains attractive compared to many other growth stocks, making it a compelling opportunity given its strategic focus and healthier finances.
While Celestica and 5N Plus have already delivered extraordinary returns this year, their deep involvement in high-growth sectors like AI, data centers, and renewable energy suggests further potential. Supported by strong financials and clear growth pathways, market analysts believe both stocks retain long-term investment appeal. Investors may watch their upcoming earnings for confirmation of this sustained momentum, aligning decisions with their individual risk tolerance.
