If I had $7,000 to spend money on the TSX right now, I wouldn’t be placing it multi function place. The Canadian market has lots to supply, however the true alternative lies in spreading your cash throughout completely different sorts of companies. I’d need a mixture of worth, innovation, and world publicity, all with strong fundamentals and a protracted runway forward.
That’s why I’d divide my money evenly between Celestica (TSX:CLS), CAE (TSX:CAE), and Shopify (TSX:SHOP). Every of those shares has a unique function to play on the TSX right now, however collectively they construct a robust basis for a long-term Canadian portfolio.
Celestica
Let’s start with Celestica. This Toronto-based firm has been round for many years, quietly making electronics and offering provide chain options. For a very long time, it wasn’t on many traders’ radars. However that’s all modified prior to now 12 months. Celestica is now closely concerned in synthetic intelligence (AI) infrastructure, high-performance computing, and superior applied sciences that help every little thing from aerospace to cloud information centres.
Celestica’s most up-to-date earnings report was spectacular. For the primary quarter of 2025, income got here in at US$2.2 billion, up from US$1.9 billion a 12 months earlier. Internet revenue hit US$80.5 million, nicely forward of analyst estimates. This development displays the shift within the firm’s core enterprise; it’s touchdown extra contracts in faster-growing segments, particularly associated to AI server manufacturing.
Whereas it’s not precisely low-cost, the inventory is cheap given the corporate’s development potential and increasing margins. With firms worldwide pouring cash into AI infrastructure, Celestica is in the proper place on the proper time.
CAE
Headquartered in Montreal, CAE is a world chief in simulation coaching for aviation, defence, and healthcare. It’s the type of firm that flies underneath the radar on the TSX right now, however performs a essential function in ensuring airline pilots, navy personnel, and docs are nicely educated. It’s additionally an organization with predictable income streams, backed by long-term contracts and recurring coaching wants.
In its most up-to-date earnings replace, CAE reported full-year fiscal 2024 income of $4.7 billion and a internet revenue of $280.7 million. That was a robust rebound after the pandemic years, as pilot coaching demand has returned with pressure and defence spending has stayed robust.
The corporate additionally reinstated its dividend, displaying administration’s confidence in its stability. CAE provides one thing that many high-growth tech shares don’t: consistency. It’s not more likely to double in a single day, however it will possibly anchor a portfolio with regular returns.
Shopify
Final however not least, I’d spherical issues out with Shopify. The Ottawa-based firm has change into a world identify in e-commerce, giving retailers around the globe the instruments to construct and scale on-line shops. Shopify has had its ups and downs, particularly as development slowed post-pandemic, nevertheless it continues to reinvent itself. The corporate’s newest outcomes present that it’s nonetheless rising quick and staying related.
In Q1 2025, Shopify reported income of US$2.4 billion, a 27% enhance from the identical interval final 12 months. It did put up a internet lack of US$682 million, however a lot of that was associated to funding write-downs, not core operations. On an adjusted foundation, the corporate is worthwhile and continues to generate robust free money stream.
Its market cap is round $190 billion, and the valuation is steep with a ahead P/E of 75.8. However it is a enterprise that’s not standing nonetheless. Shopify is investing in logistics, funds, AI instruments, and even in-app promoting options to assist sellers attain patrons sooner.
Backside line
If I had $7,000 proper now, I’d cut up it equally between Celestica, CAE, and Shopify. That’s about $2,333 into every inventory. The great thing about this combine is the stability. You get a high-growth tech producer with Celestica, a gentle cash-generating enterprise with CAE, and a dynamic world e-commerce chief with Shopify. These aren’t flavour-of-the-month picks, every are positioned to thrive within the years forward.
