Great stocks don’t just follow the market; they lead it. While the TSX Composite has surged 23% in the last year, the real winners are the stocks that are delivering even stronger returns, proving they have the momentum, solid fundamentals, and resilience to stay ahead.
One Canadian stock, CI Financial (TSX:CIX), has been consistently outperforming the broader market, and its growth story is far from over. If you’re looking for a market leader with the potential to deliver outstanding returns in the long run, this is the one to watch. In this article, I’ll explain why CIX stock continues to crush the market and why it could still be a great buy for long-term investors.
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What’s helping CI Financial crush the market
If you don’t know it already, CI Financial is a Toronto-headquartered asset and wealth management firm with a market cap of $4.5 billion. Over the last year, its stock has surged by 91% to currently trade at $31.14 per share. And it also offers a 2.6% annualized dividend yield at the current market price.
CI makes money by earning fees for managing investments and advising high-net-worth clients. The company runs mutual funds, ETFs (exchange-traded funds), and financial planning services.
A big reason for CIX stock’s strong rally of late is its smart, disciplined approach to growth. Unlike many other companies that rely purely on market momentum, CI has been making strategic moves that have paid off in a big way. The company has consistently expanded its wealth management business, both in Canada and the U.S., giving it a broader and more stable revenue base.
In the last quarter ended September 2024, CI continued its aggressive push in the U.S. wealth management space, acquiring two firms with a combined $8.1 billion in assets. Beyond just adding numbers, these moves could be seen as its calculated effort to strengthen its position as a top-tier player in the U.S. market, where demand for professional wealth management services is booming.
Meanwhile, the company’s Canadian retail asset management segment also showed signs of a turnaround, with modest positive net sales after three consecutive quarters of declines. That’s an encouraging sign that CI’s strategies are working even in a tough economic environment.
Why CIX stock could keep winning
To understand why CI Financial has the potential to accelerate growth in the coming years, we must look at how it’s positioning itself for the future. The company’s expansion into the U.S. wealth management market could be a game-changer in the coming years. Similarly, its ability to attract high-net-worth clients through Corient has the potential to accelerate its financial growth trends.
On the investment side, CI’s global asset management division continues to roll out innovative products, from new ETFs to private market funds that give investors more options. This adaptability clearly shows how CI is trying to actively evolve with emerging market trends.
Overall, CI Financial’s focus on smart acquisitions, disciplined financial management, and shareholder returns makes it a great stock for long-term investors that could continue to crush the market in 2025 and beyond.
