As we wrap up 2024, it's the perfect time to reflect on some of the surprising performances in the Canadian stock market. While the year has been full of twists and turns, several stocks have far outpaced expectations, delivering impressive gains. Here are a few that truly stood out.

Celestica: A breakout year driven by AI

Celestica (TSX:CLS) had a truly explosive year in 2024. The stock skyrocketed, multiplying investors' money by 3.5 times. This surge is largely attributed to the company's booming Connectivity and Cloud Solutions (CCS) segment, which saw a remarkable 42% revenue growth year over year last quarter thanks to the artificial intelligence (AI) boom. Although its Advanced Technology Solutions (ATS) segment faced a 5% revenue dip, the overall company still posted a 22% increase in year-over-year revenue, reaching US$2.5 billion.

Year to date, Celestica has seen a 22% revenue boost to US$7.1 billion and a 34% increase in gross profit to US$555.3 million. The company's diluted earnings per share (EPS) jumped 85%, reaching $2.46. However, given the stock has gone up so much in such a short time, many analysts believe the stock may be overextended, and a pullback to below $100 per share could present an opportunity for investors looking to buy on the dip.

The Bitcoin Fund: Riding the Bitcoin wave

The Bitcoin Fund (TSX:QBTC) is another stock that has far exceeded market expectations, climbing 125% in 2024. Its surge is tied to the rally in bitcoin prices, as the fund directly invests in long-term holdings of bitcoin, providing investors with exposure to the digital currency.

For those bullish on Bitcoin's long-term prospects, the Bitcoin Fund offers a convenient and safer alternative to direct investment in the cryptocurrency. Investors might consider buying on any potential pullbacks, especially since Bitcoin prices can be quite volatile. The Bitcoin Fund has proven to be a strong performer this year, but like any cryptocurrency-related stock, it carries significant risk.

Loblaw: Persistent growth in a defensive sector

For investors seeking more stability, Loblaw (TSX:L) is a great example of a steady performer. While its stock didn't explode like some others, rising 49% in 2024 is still an impressive return, especially considering the broader market's 16% gain over the same period. As Canada's leading grocery retailer and pharmacy, Loblaw enjoys resilient or growing earnings through the economic cycle.

Over the past decade, Loblaw's adjusted EPS has grown at a compound annual growth rate (CAGR) of 11.5%, and the company increased its dividend by 6.4% annually. While its current dividend yield is modest at about 1.1%, the stability and growth potential make it an attractive pick for conservative investors.

Because of the stock's strong performance this year, Loblaw now trades at a high multiple, which makes it riskier to buy at current levels. For those looking to enter, it might be wise to wait for a period of sideways action or a dip in the stock's price.

The Foolish investor takeaway

2024 has proven to be a year full of surprises, with Canadian stocks like Celestica, the Bitcoin Fund, and Loblaw outperforming expectations. While each offers distinct opportunities, they also come with varying levels of risk. Celestica has benefited from the AI boom, while the Bitcoin Fund has capitalized on the surge in Bitcoin prices. Meanwhile, Loblaw continues to provide steady returns and stability for long-term investors.

As the year ends, these stocks represent a mix of growth potential and defensive resilience. Investors should carefully assess their risk tolerance and consider waiting for dips before making any significant moves.