The S&P/TSX Composite Index has rewarded investors with solid gains entering the final month of 2024. As of this writing, the year-to-date gain is 22.32% (26,635.73). All the primary sectors, except communications services, are in positive territory.

If the upward trend holds, Canada's primary stock market could beat the 21.74% overall return in 2021. Brian Belski, the chief investment strategist of BMO Capital Markets, sees a stock-picking environment. He maintains a positive outlook, and his year-end 2025 target is 28,500.

Aecon Group (TSX:ARE) and MDA Space (TSX:MDA) are among this year's winning investments. The pair belong to the industrial sector but operate in different industries. Moreover, both growth stocks trade below $30 and could still skyrocket.

Engineering and construction

Aecon has endured a challenging environment, including cost overruns, in a challenging environment. The $1.8 billion construction and infrastructure development company cater to private and public-sector customers. Two core segments, Construction and Concessions, contribute to revenues.

Despite a $73.5 million loss in the first three quarters of 2024, the stock is up 121.35% year to date. At $28 per share, current investors partake in the decent 2.71% dividend. Jean-Louis Servranckx, president and chief executive officer of Aecon, said, "We continue to be focused on embracing opportunities linked to the energy transition and in select U.S. and international markets."

The silver lining is the $6 billion backlog supported by solid demand in recurring revenue programs. According to Servranckx, Aecon is well-positioned to achieve revenue growth commencing in 2025 and over the next few years. The company has a 40% interest in the Flatiron-Aecon Joint Venture, whose contract with the U.S. Army Corps of Engineers is worth US$657 million.

Aecon's nuclear power segment is growing. In late October 2024, management announced a definitive purchase agreement to acquire United Engineers & Constructors for US$33 million. Acquiring the nuclear and conventional power contractor will enhance Aecon's nuclear capability.

Management's primary goal is to build a resilient company. Given the balanced and diversified work portfolio across sectors, markets, geographies, project types, sizes, and delivery models, the goal is achievable. Aecon expects improved profitability and margin predictability in the coming years.

Aerospace and defence

MDA Space is a high flyer in 2024. At $27.69 per share, the year-to-date gain is 140.4%. Had you invested $7,000 a year ago, your money would be $16,869.45 today. The rapidly growing space economy makes the aerospace and defence industry a good investment option.

This $3.2 billion company provides advanced space technologies. Its customers include emerging space companies, prime contractors, and government agencies globally. Technological innovation is the primary focus, and MDA aims to contribute to landmark achievements in space through its mission-tested solutions.

In the third quarter of 2024, revenue and adjusted net income increased 38% and 59.9% year over year to $282.4 million and $34.7 million, while total backlog rose 49% to $4.6 billion. Its chief executive officer, Mike Greenley, said that as a trusted mission space partner, MDA will leverage its capabilities and expertise to execute targeted growth strategies across end markets and business areas.

Revenue visibility

Aecon and MDA Space are strong buys for long-term or growth investors. Their backlogs provide good revenue visibility for 2025 and beyond. The stock prices should soar alongside revenue growth.