The Canadian stock market has been on a roll in 2024, with the S&P/TSX Composite Index up 17.4% year to date, fueled by cooling inflation and lower borrowing costs. This renewed optimism has created exciting long-term opportunities across a range of sectors.

By focusing on businesses with strong fundamentals and growth-oriented strategies, Foolish investors could still build a portfolio that thrives over the next decade. In this article, I'll highlight two monster TSX stocks that could deliver exceptional returns in the next 10 years.

CAE Stock

CAE (TSX:CAE) stock has outperformed the broader market so far in 2024, especially in recent months. Having risen by over 40% over the last three months, shares of this Saint Laurent-based simulation technologies company currently trade at $34.18 per share with a market cap of $10.9 billion.

Despite slowing global economic growth, CAE has maintained a positive revenue growth trajectory. In the second quarter (ended in September) of its fiscal year 2025, CAE posted a 4.4% YoY (year-over-year) increase in its total revenue to $1.14 billion, exceeding analysts' expectations with the help of strong demand in its civil aviation and defence segments.

The civil aviation segment, which accounted for nearly 56% of its total revenue, saw a 12% YoY jump to $640.7 million due mainly to full-flight simulator sales and long-term training contracts with major aviation players. Similarly, its defence operations posted a 4% increase in revenue to $495.9 million, a record $2.3 billion in new contract awards during the quarter.

Notably, the company recently secured a transformative $1.7 billion award under Canada's Future Aircrew Training Program, solidifying its position as a leader in defence training and simulation. In addition, CAE's acquisition of a majority stake in SIMCOM Aviation Training for $230 million further expands its footprint in the business aviation training market, diversifying its recurring revenue streams further.

With a record $18 billion order backlog and ongoing innovation in training technologies, CAE seems well on track to benefit from long-term growth opportunities in both civil and defence markets, which should help its share prices keep soaring in the long run.

Air Canada stock

After declining for four consecutive years, Air Canada (TSX:AC) witnessed a strong recovery in 2024. With 17.5% year-to-date gains, AC stock currently trades at $21.96 per share with a market cap of $7.7 billion.

In the third quarter of 2024, Air Canada reported solid financial results despite facing certain short-term headwinds. The Canadian flag carrier's operating revenue in the latest quarter reached $6.1 billion, though this reflected a slight 4% YoY drop due to lower passenger revenues. However, the airline's operational improvements and cost management stood out, with free cash flow increasing by $147 million to $282 million.

Despite the recent optimism and a notable financial recovery in the post-pandemic era, Air Canada stock is still down 55% from the pre-pandemic year 2019's closing level of $48.51 per share, making it look undervalued. Besides its strategic focus on efficiency without compromising on growth, gradually strengthening global travel demand makes Air Canada an even more attractive stock to buy now and hold for the next decade.