As you will see in the full video above, Brianne Gardner, senior wealth manager at Velocity Investments, Raymond James Canada reviews her past picks from September to see if they are on the money and she gives three new diversified picks for 2025 in healthcare, energy and financial sectors.
First we look at Gardner’s past picks from September 2024.
Past Picks
Capital Power Corporation (TSX: CPX)
(Utilities) (+29.70 per cent since 09/16 to 11/29 – “We still like the stock.”
- Capital Power Corporation (CPX) is a leading North American power producer that focuses on sustainable energy solutions (wind, solar, and natural gas)
- The stock has benefited from sector rotation, and we believe there’s more upside as the Bank of Canada is likely to continue cutting rates to support a slowing economy
- CPX’s business model prioritizes acquiring and developing power generation projects, ensuring a stable and growing revenue stream
- Financially, the company has shown strong performance, with sales growing at an annual rate of 12.9 per cent over the past decade and EPS increasing at 11.3 per cent
- Recently, CPX boosted its dividend by 6 per cent, offering an attractive yield of 4.2 per cent
- We remain positive on the company’s outlook and will continue to hold the stock
Capital Power Corporation (TSX:CPX) was last trading at C$62.28.
CCL Industries Inc. Class B (TSX:CCL.B)
(Industrials) (-5.58%since 09/16 to 11/29 ) – “We still like the stock”
- CCL is the world’s largest label maker, known for Avery labels commonly used in offices and specialty packaging for various industries.
- The company also produces polymer banknotes for 24 countries and RFID components found in many passports, showcasing its advanced capabilities.
- Recent results across segments were mixed and that’s the reason of the volatility in the stock.
- The Label segment saw slightly lower-than-expected growth, while the Checkpoint segment reported a strong 30% increase in RFID-driven organic growth.
- Softer Label growth in Q4 may create short-term challenges, but investments in capacity and a strategic focus on high-growth areas position other segments for continued success.
- With a target price of $87 (13% upside potential), the recent pullback presents an opportunity to add to your the portfolio.
CCL Industries Inc. (TSX:CCL.B) was last trading at XX
Wheaton Precious Metals Corp. (TSX:WPM)
(Materials) (-0.56% since 09/16 to 11/29) – “We still like the stock.”
- Wheaton Precious Metals Corp. is a Canadian multinational precious metals company that focuses on gold and silver.
- They use a streaming model, paying mining companies upfront for the right to buy metals later at a fixed, lower price, reducing operational risks compared to traditional miners.
- WPM’s recent performance keeps reflecting the of the precious metals market. Gold and Silver have recently suffered a pullback given US dollar appreciation and expectations of lower rate cuts which means higher storage cost.
- Looking ahead, the outlook for gold and silver remains positive, underpinned by:
- Strong demand from central banks.
- Potential escalation of geopolitical tensions, particularly with Trump back in power.
- The execution of anticipated rate cuts.
- Consensus target is about $105.5 (21.8%). We would be adding more of the stock at this price
Wheaton Precious Metals was last trading at XX
New Picks
Now we look at Gardner’s 2025 stock picks.
Thermo Fisher Scientific Inc. (NYSE:TMO) – Healthcare
- Thermo Fisher Scientific is a global leader in scientific services, providing essential tools and support for research, healthcare, and industry.
- Thermo Fisher expects steady growth into 2025, especially growth drivers become more visible replacing pandemic-related revenue which are becoming less significant.
- For example, they’ve seen high demand for diagnostic products, with significant growth expected as healthcare providers expand testing capabilities.
- The company raised its full-year EPS guidance, with the last quarter of the year expected to increase 3% higher than previous estimates.
“We are optimistic on the stock, watching for signs of industry recovery and potential stimulus impacts from China. We are also monitoring growth in equipment sales and developments in the biotech sector.” – Brianne Gardner
Target Price: USD 660.00 (26% upside potential)
Thermo Fisher Scientific Inc. (NYSE:TMO) shares were last trading at US$530.87.
Canadian Natural Resources (TSX:CNQ) – Energy
- Canadian Natural Resources (CNQ) is a key player in Canada’s energy industry and ranks as the fifth-largest oil and gas company by revenue.
- CNQ is increasing its use of the Trans Mountain Expansion (TMX) pipeline starting in December which funnels crude from the oilfields of Alberta to Canada’s west coast.
- CNQ has worked hard to reduce debt and return cash to shareholders through dividends and buybacks. However, it still carries more debt than some of its competitors.
- Global oil markets gained some relief with the Lebanon cease-fire easing tensions. However, all eyes are on the upcoming OPEC+ meeting, where potential production cuts could provide near term support in a volatile market.
- Energy tariffs are unlikely, as they would harm both sides. With 40% of U.S. refined crude being imported—60% of which comes from Canada—this trade relationship remains crucial.
Gardner, “We remain optimistic on the near term, consensus target is 56.22.” (18.5% upside potential).
Canadian Natural Resources (TSX:CNQ) was last trading at XX
Fairfax Financial Holdings (TSX:FFH) – Financials
- Financials have performed well this year, with few discounted opportunities but a favorable environment. We focus on Growth at a Reasonable Price.
- Fairfax Financial Holdings specializes in property and casualty insurance, reinsurance, and investment management, with operations spanning North America, Latin America, Europe, Asia, and the Middle East.
- In Q3 2024, Fairfax reported $1.03 billion in net earnings, reflecting strong operating income and substantial investment gains.
- Claims and expenses were well-managed, with a combined ratio of 93.9%, meaning only $93.90 of every $100 in premiums was spent on costs, ensuring profitability.
- Double-digit growth in operating income and premiums, fueled by the Gulf Insurance acquisition, highlighted the company’s strategic execution.
- Fairfax plans to strengthen its financial position further, leveraging underwriting expertise and pursuing acquisitions to fuel future growth.
Gardner, “The consensus target on the stock is 2216 (12% upside potential).”
Fairfax Financial Holdings (TSX:FFH) was last trading at C$1988.02.
Check out Gardner’s, Investment expert gives fall stock picks, companies to watch and What will the U.S. election results mean for Canada?
As well, watch Gardner’s previous price targets for e-commerce giants Amazon and Shopify here. And check out other previous Gardner interviews: Experts offer a fresh look at investment strategies for 2024; Will we have a bear market or bull market in 2024?; What’s ahead for Apple after its rough start to 2024? and Is Lululemon a buy, sell or hold?
Join the discussion: Find out what everybody’s saying about these companies on the Capital Power Bullboards , CCL Industries Bullboard and Wheaton Precious Metals Bullboards and check out Stockhouse’s stock forums and message boards.
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