Canadian Stocks That Surged in Q2 2025

Celestica Inc. (CLS) was the top-performing large- or mid-cap stock on the Toronto Stock Exchange over the past three months, posting a 76.6% gain. It was followed by uranium producer Cameco Corp. (CCO) with a 67.6% advance and digital asset firm Galaxy Digital Inc. (GLXY) with a 66.4% rise.

The second quarter of 2025 marked a clear rebound for Canadian equities, with the S&P/TSX Composite Index climbing 7.3% during the period. Following the market lows around early April—when trade policy announcements unsettled investors—the benchmark steadily recovered and reached fresh highs. Market observers point to reduced trade tensions on several fronts and stronger-than-expected corporate earnings as key drivers of the rebound.

Celestica leads tech comeback

Among the biggest winners were stocks from the technology, materials and industrial sectors, showing that the rebound was broad-based rather than concentrated in a single industry. Celestica, a computer hardware and electronics manufacturing services company, recovered from a six-month low of $94.08 on April 4 to surpass its February highs. Analysts and investors see the company positioned to benefit as large technology firms continue to increase spending on artificial intelligence (AI) infrastructure and related components.

Cameco, headquartered in Saskatoon and the world’s largest publicly traded uranium miner, benefited from a notable recovery in uranium prices since mid-March, which supported its strong performance. Galaxy Digital, based in New York City, operates in the digital-asset space with trading operations and data centers; its business has gained momentum alongside renewed interest in cryptocurrencies and instruments like stablecoins. Galaxy’s turnaround since March largely tracks the broader recovery in crypto markets.

Biggest gainers on the TSX in Q2

Below is the TSX’s top 10 list of momentum stocks for Q2 2025, measured by percentage price gain from March 31 to June 30. The table summarizes closing prices at the end of each quarter and the percentage increase over the period.

Investors should remember the common disclaimer: past performance is not a guarantee of future returns. For example, despite a strong second quarter, Air Canada remained down by 6.06% over the first half of the year. Short-term rallies can be impressive, but they may not fully offset earlier losses within the same year.

That said, momentum is a well-documented factor in investing. Historically, stocks that have gained ground in recent months often continue to outperform for some time, although there is debate among strategists about the most effective holding period. Some practitioners favor short-term windows of several months to capture continued strength, while others recommend holding for a year or longer to realize potential additional gains.

Momentum investing is rarely used in isolation. Many portfolio managers blend momentum with other investment approaches—such as value investing, growth investing or a focus on dividends—to reduce the risk of buying stocks at their short-term peak. Combining factors can help smooth returns and improve risk-adjusted outcomes over different market conditions.

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