Top-Performing Stocks to buy and Hold for the next five years

Post-election rally has led to an 18.8% gain for the S&P/TSX Composite Index for the current year. Stock markets have been boosted by President-elect Donald Trump’s pro-growth policies.

In contrast, the following three stocks have outperformed the broad equity market this year and may hold on to their gains.

Celestica (TSX: CLS) has performed well this year, increasing by 198.2%. This is due to exposure to a fast-growing sector of artificial intelligence (AI), strong quarterly results, and the launch of new products.

It reported revenue by 22% in its third-quarter earnings and adjusted EPS by 60% to $1.05. HPS networking switches drove its financials while Connectivity & Cloud Solutions drove earnings.

lt of the AI (artificial intelligence) boom. Meanwhile, AI/ML (machine learning) data centers continue to require high bandwidth, requiring innovative products (switches and storage controllers).

Additionally, the company partnered with Groq, an AI company specializing in accelerated inference. Celestica’s financials are expected to trend upward over the next five years due to the favorable environment and its growth initiatives.

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Dollarama (TSX: DOL) also performed well, returning 55.5% this year. Its financial results have been driven by better-than-expected same-store sales and new store openings.

Due to its direct sourcing method and efficient logistics, it can offer a variety of products at a reasonable price.

While the macro environment was challenging, the company’s compelling value offerings led to healthy footfalls, driving its same-store sales.

Dollarama plans to expand its store network by the end of fiscal 2031, aiming for 2,000 stores. Considering the retailer’s efficient capital business model and fast sales ramp-up, the retailer’s expansion could increase both its top line and bottom line.

Furthermore, the company owns a 60.1% stake in Dollarcity, a Latin American retailer with 570 stores. A 9.9% increase is also available.

Dollarcity also plans to add 1,050 stores by 2031. I expect Dollarama’s uptrend to continue, considering its growth prospects and solid underlying business.

It is Waste Connections (TSX: WCN) I would pick as my last pick, as it has returned 31.4% so far this year.

A solid organic growth strategy and strategic acquisitions contributed to the solid waste management company’s outstanding performance in the first three quarters of this year.

In addition, adjusted earnings per share (EPS) grew by 17.9% and 11.2%, respectively. A 10.5% increase in dividends was also announced, which equates to a forward yield of 0.67% for the company’s shares.

By the end of 2026, WCN plans to put into operation 12 renewable natural gas (RNG) projects. Further, it has invested in optical sorters and robotics to reduce labor and produce high-quality output.

Organic growth and acquisition of quality assets are important components of the company’s strategy. I expect WCN’s financials to continue to rise, which will support its stock price.

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Take these steps before investing in Celestica Inc. Celestica Inc. isn’t among the 10 best stocks to buy right now according to Stock Advisor Canada. Stocks that cut could produce monster returns.

MercadoLibre, which we recommendeded on January 8, 2014. The “eBay of Latin America” would have made you $20,217.91 if you had invested $1,000 as we recommended!*

It teaches investors how to build a portfolio, provides regular updates from analysts, and provides two new stock picks a month. Compared to the S&P/TSX Composite Index, Stock Advisor Canada has returned 35 percentage points more.

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