Beyond 2024’s Rally: Canadian Stocks With Room to Run

Despite looming U.S. political shifts, these three Canadian stocks are powering into 2025 with robust growth and surprisingly attractive valuations.

Global financial markets face uncertainty in 2025 as the United States transitions to a new administration that could reshape economic trade and regional politics. However, several Canadian stocks show remarkable resilience with strong fundamentals and sustained momentum. Let’s examine three TSX stocks trading near 52-week highs that demonstrate substantial upside potential in 2025, with projected revenue and earnings growth exceeding 15% annually.

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Alamos Gold stock triples in value, retains upside potential

Alamos Gold (TSX: AGI) emerges as a compelling TSX gold stock investment opportunity as gold prices hover above US$2,660 per ounce, giving gold miners a strong start to the new year.

Following its inclusion in the TSX 30 2024 (a list of consistently outperforming Canadian stocks over the past three years), Alamos reported record production and quarterly revenue during the third quarter of last year. Growth prospects remain strong as the company’s Mulatos District expands mine life, and the recently acquired Magino mine contributes significantly to free cash flow.

Analysts project 30% revenue growth at Alamos this year, with earnings potentially surging over 50% in the next 12 months. Production growth and record gold prices position Alamos Gold on a sustained earnings and cash flow growth trajectory.

Despite shares tripling over three years, Alamos Gold stock remains undervalued with a forward price-to-earnings (P/E) ratio of 23 and a forward price-to-earnings-to-growth (PEG) ratio of 0.7, suggesting significant growth potential at current prices.

Additionally, new U.S. tariffs on Canada and Mexico, and potential trade policy changes may have minimal impact on gold miners, providing a degree of insulation from geopolitical uncertainties.

Aritzia stock to sustain newfound momentum in 2025

Luxury fashion brand Aritzia (TSX: ATZ) demonstrated remarkable performance in 2024, with shares surging 156.5% over the past 12 months. The company’s January 9, 2025, earnings report revealed impressive 12% year-over-year sales growth, highlighted by exceptional 24% growth in Aritzia’s U.S. segment. Strong e-commerce momentum, successful new store rollouts, and increasing brand affinity among consumers continue driving ATZ’s expansion.

While ATZ stock’s forward P/E of 27.9 exceeds the industry average of 16.3, the premium valuation reflects strong growth prospects. Analysts expect revenue growth to accelerate beyond 18% by 2026, with earnings projected to jump 83% this year and 44% the following year.

The company’s aggressive U.S. expansion strategy and enhanced e-commerce initiatives could unlock further revenue growth and margin expansion, potentially justifying current valuations for long-term-oriented investors in 2025.

IAMGOLD Corp

IAMGOLD (TSX: IMG) stock has maintained strong momentum into 2025, gaining 10% in the year’s first two weeks after a remarkable 156% total return during the past year.

The company is ramping up production at its flagship Côté Gold asset, one of Canada’s largest gold mines. The mine reached 77% production capacity during the third quarter of 2024, and management targeted 90% by early 2025. Operational improvements extend beyond Côté Gold, with enhanced cash flow productivity at its Westwood underground mine in Quebec and strong performance at its West African operations.

With all-in-sustaining costs of around $1,625 per ounce and gold trading above US$2,660, IAMGOLD’s profitability outlook remains robust. The company’s strong cash flows should support ongoing efforts to strengthen its balance sheet as production continues to grow.

Despite a superior return on equity of 22.2% (compared to the industry average of 5.9%), IMG trades at an attractive forward P/E of 9.1 and a PEG ratio of 0.1, suggesting significant undervaluation relative to its growth potential and making it an appealing option for value-oriented investors.

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy.

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