TD Securities releases Canada’s best stock picks list 2025
TD Securities has released its annual list of Canada’s top stock picks, focusing on companies that could weather the country’s uncertain economic climate. The list identifies 25 firms TD believes have the strongest potential until the end of the year.
Andre-Philippe Hardy, TD’s managing director and head of Canadian research, emphasized that the Canadian economy is currently fragile. He shared insights in an interview, explaining the reasoning behind the selections and the macroeconomic factors influencing them.
Key Themes Shaping Investments
Hardy highlighted three dominant themes that investors should watch closely in the coming months: broadening tariff impacts, increased fiscal stimulus, and slowing population growth combined with mortgage resets.
On tariffs, he noted that Canada’s outlook remains clouded by uncertainty in U.S. trade policy. “It’s been six months since tariffs were first imposed, but their effects continue to ripple through Canadian exports,” he said. While exemptions under the USMCA (U.S.-Mexico-Canada Agreement) have offered some relief, tariffs continue to rise, and negotiations set for 2026 add to the uncertainty.
Fiscal policy is another key factor. Hardy advised investors to pay attention to federal spending plans expected in Prime Minister Mark Carney’s upcoming first budget. Increased government spending could benefit many companies on the TD list, providing a potential boost amid economic challenges.
Lastly, Hardy pointed to consumer-specific issues that could weigh on growth. Canada faces a decline in temporary residents and a wave of low-rate mortgages resetting at higher rates. These factors are expected to limit household spending and dampen GDP growth.
Stocks Positioned for Resilience
Despite these economic headwinds, TD’s selections focus on companies that are less exposed to risks and more aligned with supportive trends. For instance, electricity demand is expected to remain robust for energy-focused firms.
Among the highlighted stocks are Capital Power Corp., an Edmonton-based energy company; Gildan Activewear Inc., headquartered in Montreal; and Calgary-based Boardwalk Real Estate Investment Trust (REIT). These firms are anticipated to navigate the economic uncertainty and benefit from structural themes in the Canadian market.
Hardy explained that the chosen companies are not just about short-term gains. They are meant to offer resilience amid volatility while capitalizing on longer-term trends like energy demand and selective fiscal support.
Investor Takeaways
TD’s list reflects a cautious yet strategic approach. Investors are encouraged to carefully consider macroeconomic factors. It focused on firms with solid fundamentals and exposure to themes likely to perform well in a challenging economic environment.
By balancing risk and opportunity, the bank believes these 25 stocks offer some of the best prospects for Canadian investors until the end of the year.
