There’s by no means an ideal time to take a position. However ready for the whole lot to really feel sure usually means lacking out on nice alternatives. Proper now, the TSX is filled with quietly robust performers, firms that aren’t essentially making headlines each day however are constructing actual momentum. If I needed to put my financial savings to work on the TSX as we speak, I’d go along with a trio of very completely different however very promising shares. These are Shopify (TSX:SHOP), North American Building Group (TSX:NOA), and Headwater Exploration (TSX:HWX). And all three have current outcomes to again up their potential.
Shopify
Shopify may not really feel like a hidden gem. It’s one among Canada’s most recognizable tech names. However what usually will get missed is how a lot Shopify has matured. It’s not nearly serving to small companies arrange a web based retailer anymore. It’s grown right into a full e-commerce ecosystem, serving main international manufacturers and constructing instruments that deal with the whole lot from funds to logistics to advertising and marketing, all whereas layering in synthetic intelligence (AI).
Within the fourth quarter of 2024, Shopify posted income of $2.81 billion, up 31% from the 12 months earlier than. Adjusted earnings per share (EPS) got here in at $0.44, properly forward of analyst expectations. What’s placing is how Shopify is balancing progress with bettering profitability. Gross margins ticked up, and the corporate reaffirmed its concentrate on disciplined spending whereas nonetheless investing in AI merchandise like Shopify Magic. It’s additionally increasing internationally, significantly in Europe, the place e-commerce adoption nonetheless has room to develop. Regardless of previous volatility, Shopify is proving it’s greater than a pandemic-era success story; it’s constructed for long-term international progress on the TSX as we speak.
NOA
If Shopify is a wager on the way forward for commerce, North American Building Group is a wager on one thing extra concrete, actually. Primarily based in Alberta, NOA is a heavy civil building firm that focuses on mining help providers. It’s been round for many years however has actually come into its personal in recent times, using a wave of infrastructure initiatives and pure useful resource growth.
In 2024, NOA reported income of $1.1 billion, a 15% enhance over 2023. Web earnings additionally jumped, supported by excessive gear utilization and good value management. What makes NOA engaging proper now’s that it’s not depending on anybody mission or commodity. It really works throughout oil sands, mine growth, and web site providers, giving it income range and safety in opposition to downturns in any single sector. The corporate continues to develop its fleet, renew long-term contracts, and preserve a powerful security document. It additionally pays a dividend, which is a pleasant bonus in a growth-oriented choose on the TSX as we speak.
Headwater
Then there’s Headwater Exploration, a small however fast-growing oil and fuel producer targeted in Western Canada. HWX is a type of firms that has quietly outperformed because of good execution and capital self-discipline. It isn’t chasing aggressive manufacturing progress in any respect prices. As a substitute, it’s targeted on sustaining low debt, producing free money circulation, and delivering robust returns on invested capital.
In 2024, Headwater introduced in $300 million in income, up 25% from the earlier 12 months. Web earnings rose to $60 million, thanks partially to greater commodity costs and environment friendly operations. Its core asset, the Marten Hills Clearwater play, continues to exceed expectations. Headwater has additionally been reinvesting fastidiously in its growth program, funding new wells with out overextending itself financially. Its steadiness sheet is without doubt one of the cleanest within the sector, with no long-term debt and a rising money place. For traders who need publicity to power with out taking up large threat, HWX affords a powerful mixture of stability and upside.
Backside line
What I like most about this mixture of shares is that they every play a special function within the TSX as we speak. Shopify brings long-term innovation and publicity to the worldwide digital economic system. North American Building provides infrastructure and onerous property with the bonus of a dividend. Headwater faucets into power markets with disciplined administration and high-quality property. All three reported robust 2024 outcomes and are beginning 2025 with stable momentum.
Placing my financial savings into these names wouldn’t be about chasing fast features. It could be about proudly owning firms which can be executing properly, managing their capital correctly, and constructing actual worth over time. And in a market the place headlines can change rapidly, that’s the sort of basis I’d wish to depend on.
