As 2024 comes to a close, the Canadian stock market has left investors with plenty to reflect on. While some stocks surged to new highs, others struggled under sector-specific challenges and broader economic uncertainties.
However, the past doesn’t always guarantee what the future will bring. As we head into 2025, many Canadian stocks appear well-positioned to gain strength, supported by their strong fundamentals and favourable market trends. In this article, let’s take a quick look at a curated list of the most promising Canadian stocks for 2025 and the factors that make them attractive buys right now.
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CI Financial stock
Shares of CI Financial (TSX: CIX) have already risen by 109.4% so far in 2024 to currently trade at $ 31.11 per share with a market cap of $4.5 billion. If you don’t know it already, this Toronto-based asset and wealth management firm generates revenue by managing investment firms, offering financial advisory services, and earning fees based on assets under management and administration. It also rewards investors with dividends and offers a 2.6% annualized dividend yield at the current market price.
Even as economic uncertainties have affected the business growth for many financial firms, CI Financial’s revenue has climbed by over 18% YoY (year over year) for the last 12 months, while its adjusted earnings have risen 11%.
CI Financial is also continuing to show its ability to achieve operational efficiency and record-breaking performance, even during challenging periods. For example, the company reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) attributable to shareholders at an all-time high of $270.5 million in its latest quarter ended in September. As its strategic acquisitions in the U.S. wealth management sector continue to drive growth and stability, CIX stock could inch up in 2025.
TD Bank stock
Toronto-Dominion Bank (TSX: TD) has been in the news of late as its stock dived by over 7% on December 5 following the release of its quarterly earnings, which fell short of Street analysts’ expectations. With this, TD stock now trades at $74.62 per share with a market cap of $130.6 billion after witnessing 13% value erosion year to date.
Despite this recent setback, I find TD Bank to be a strong contender for 2025, especially for income investors who want to lock in an attractive annualized dividend yield of 5.6% at the current market price. In the fourth quarter of its fiscal year 2024 (ended in October), the bank posted a solid 27% YoY jump in its earnings, highlighting its ability to navigate tough economic conditions.
While the recent settlement of its anti-money laundering compliance issues in the U.S. weighed on its adjusted earnings in the latest quarter, this resolution may bring much-needed clarity for investors and allow the bank to refocus on growth. Moreover, TD could continue to leverage its strong Canadian personal and commercial banking segment, which could help its share prices recover in 2025.
Aritzia stock
Up 82% so far in 2024, Aritzia (TSX: ATZ) stock currently trades at $49.94 per share with a market cap of $5.6 billion. While unlike CIX and TD, Aritzia doesn’t offer a dividend, the Canadian fashion retailer’s consistently improving long-term growth potential makes it a really attractive stock for 2025.
In the quarter ended in August 2024, Aritzia posted impressive performance, which highlighted its potential for sustained growth in the coming years. With net revenue up 15% YoY and a 24% boost in U.S. sales driven by strategic real estate expansion and e-commerce growth, the Canadian clothing retailer is striving to position itself as a top company in the everyday luxury segment. With its continued focus on new boutique openings, an enhanced website launch, and growing brand awareness, Aritzia’s momentum makes it a really attractive Canadian stock for the new year.
