Two TSX Stocks Set for a Strong Summer

Canadian stocks are showing signs of a robust recovery, sparking optimism among investors. The TSX Composite Index's recent 4.8% rise in the last 25 sessions, surpassing the 20,500 level, suggests a positive trajectory. As the market gains momentum, investors may consider adding fundamentally strong TSX stocks to their portfolios. This article highlights two promising options for a summer investment.

Celestica Stock: Riding High on Growth Trends

Celestica (TSX:CLS) emerges as a standout performer on the Toronto Stock Exchange, showcasing a remarkable 42.3% surge in July and an impressive year-to-date gain of 79.4%. Based in Toronto, Celestica specializes in designing and manufacturing hardware platforms while providing supply chain solutions. With a current market cap of $3.3 billion and a stock trading at $27.37 per share, Celestica's robust financial growth underpins its stellar performance.

The recent second-quarter financial results underscore the company's resilience and growth prospects. Celestica reported a 12.9% year-over-year increase in total revenue, reaching US$1.9 billion. Notably, the adjusted quarterly profit soared by 22.9% from the previous year to US$66.6 billion. Impressively, Celestica has surpassed analysts' earnings estimates for 16 consecutive quarters, reflecting its consistent business growth. With these strong fundamentals, the recent gains in Celestica's TSX stock may signify the beginning of a sustained rally.

Nutrien Stock: Navigating a Steady Recovery

Nutrien (TSX:NTR), headquartered in Saskatoon, stands out as a compelling TSX stock for summer investment. As a prominent crop inputs and services provider with a market cap of $44.6 billion, Nutrien's stock trades at $89.65 per share, experiencing a 9.3% year-to-date decline.

Following a challenging period marked by nearly 24% value erosion in May 2023 due to geopolitical and weather-related factors impacting global agriculture commodity markets, Nutrien has embarked on a steady recovery. Since the end of May, the stock has rebounded by over 25%.

Despite short-term volatility in global commodity markets and macroeconomic challenges, analysts foresee improved financial growth for Nutrien next year as these temporary obstacles subside. While the upcoming second-quarter results, scheduled for August 2, will provide deeper insights, Nutrien's strong balance sheet and sustained demand for its services position it for long-term growth. Additionally, Nutrien's appealing annualized dividend yield of 3.1% adds to its allure, especially for investors seeking passive income.

Conclusion: Navigating the Summer Investment Landscape

As the summer investment landscape unfolds, Celestica and Nutrien emerge as compelling options for investors seeking robust and fundamentally sound TSX stocks. Their respective growth trajectories, resilient financial performances, and strategic positions in their industries make them noteworthy candidates for inclusion in investment portfolios.