2025 is already turning into quite the whirlwind of a year for Canadian stocks. We have tariff and sovereignty threats coming from the United States. Canada has a defunct leader in power, and nobody knows when an election will be called.
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Expect lots of stock market volatility in 2025
Interest rates have gone down. However, bond yields have remained elevated. That has dampened the positive economic impact that lower interest rates could have. Economists are either worried that tariffs could boost inflation or lead to economic stagnation. All these things make it challenging to know how and where to invest.
Frankly, the best thing an investor can do is invest in really good businesses and then hold on for dear life. Great businesses tend to adapt and pivot during times of economic uncertainty.
If you pick your stocks wisely, you can both preserve and grow your wealth. If you are looking for Canadian stocks that can continue their upward trajectory (despite the uncertainty), here are two to add to today.
A Canadian consulting stock with a global opportunity
WSP Global (TSX: WSP) has been an excellent long-term stock. This Canadian stock is up 25% in the past year and over 165% in the past five years. The good news is that there is still plenty of upside ahead.
Yesterday, management announced a new three-year strategic plan. In that time, it is aiming to grow revenues by 40%, adjusted net earnings per share by 60%, and free cash flow by 70%.
The company is looking to become an end home for engineering and advisory firms around the globe. The advisory sector is still incredibly fragmented. WSP has plenty of opportunities to keep growing by acquisition.
Likewise, the company is doing many self-help initiatives to increase margins and improve organizational efficiency. With long-term tailwinds from aging infrastructure, urbanization, and climate change adaptation, WSP should have many years of growth ahead.
A Canadian infrastructure stock that is an income, value, and growth play
Secure Waste Infrastructure (TSX: SES) (formerly known as Secure Energy) is a very intriguing value, income, and even growth play for 2025. While Secure used to be a volatile energy services company, today this Canadian stock is a waste infrastructure leader in Western Canada.
Energy companies produce substantial waste that must be cleaned or disposed of. Secure has a portfolio of landfills, wastewater processing facilities, oil extraction facilities, and metal recycling centres. These are monopolies in the locations they serve. They earn reliable recurring, contracted revenues.
The market still prices this stock like an energy services business. Secure trades at almost four to six churns below other Canadian waste disposal peers. That is despite Secure expecting to grow earnings faster than peers in 2025 (about 9%).
Secure generates high profit margins and strong free cash flows. The company is using that cash to aggressively buy back shares. Last year, it purchased 20% of its shares outstanding.
This year, this Canadian stock is approved to buy back 8% of its shares. Secure also pays a nice 2.8% dividend yield. For a great mix of tangible shareholder returns and the potential for a stock up-rating, Secure is a great stock to buy for 2025.
