There’s little question that 2024 was a fantastic 12 months for the TSX. In truth, the TSX Index has rallied 22% thus far this 12 months and is buying and selling at all-time highs. This efficiency has been a really welcomed shock for a lot of. On this article, I’ll talk about two TSX shares that outperformed expectations and contributed to this stellar efficiency for the TSX Index.
With out additional ado, let’s check out these two TSX shares.
Celestica inventory
Up a really spectacular 275% thus far in 2024, Celestica Inc. (TSX:CLS) has had a 12 months of momentum and better-than-expected outcomes. For instance, Celestica’s “Connectivity and Cloud Options” (CCS) phase is benefitting enormously from the synthetic intelligence, or AI, increase. Revenues on this phase have grown 39% in 2024 and at a 25% compound annual progress fee (CAGR) within the final three years.
Hyperscaler demand has continued to soar in 2024, and this has resulted in Celestica posting better-than-expected outcomes this 12 months. In truth, earnings per share within the first 9 months of 2024 have beat expectations by virtually 15%. This, together with the corporate’s sturdy progress runway, has boosted Celestica inventory larger. Wanting forward, AI infrastructure funding is wanting ahead to a multi-year progress profile forward of it.
In Celestica’s newest quarter, the corporate posted $2.5 billion in income. This was 22% larger than final 12 months and above expectations. Moreover, earnings per share (EPS) got here in at $1.04, 60% larger than final 12 months. Lastly, Celestica achieved a really spectacular return on invested capital (ROIC) of 29%.
Properly Well being Applied sciences inventory
What’s up with Properly Well being Applied sciences Inc. (TSX:WELL)? Properly, quite a bit. Initially, the corporate has been experiencing sturdy momentum in its enterprise. As its applied sciences exhibit the advantages of digitizing healthcare practices, demand is accelerating. For instance, household practices are quickly getting onboard, and that is leading to higher profitability, higher affected person care, and higher efficiencies. In consequence, Properly Well being inventory has additionally been on a tear. In truth, it has sky-rocketed in 2024 and is up 80% thus far within the 12 months.
So let’s discuss how Properly Well being has outperformed expectations in 2024. The story at Properly Well being has been sort of comparable for the previous few years. As a matter of truth, in its newest quarter (Q3 2024), Properly Well being reported its 23rd consecutive quarter of record-breaking outcomes. Additionally, the corporate has lengthy had a purpose of hitting annual income of $1 billion, and this has been achieved forward of schedule.
Lastly, Properly Well being has raised its steering as soon as once more in 2024, as the corporate’s outcomes stored surpassing expectations. Long run, Properly Well being is focusing on income of $4 billion from the Canadian major care market. That is roughly 10 occasions present ranges and would solely characterize 5% of the market.
In order you may see, the corporate has solely scratched the floor when it comes to its alternative. Wanting forward, we will count on Properly Well being to proceed to extend its profitability, money flows, and shareholder returns. That is administration’s said purpose, and because the firm continues to attain extra scale, that is changing into more and more seemingly.
The underside line
Each Celestica and Properly Well being are TSX shares benefitting from sturdy momentum of their respective companies. And it appears like this momentum has a superb long-term progress trajectory forward of it for each of those firms.