The Canadian financial sector has long been a cornerstone of stability and growth for investors, offering a mix of diversification, steady passive income, and resilience through market cycles. As 2025 unfolds, three financial stocks stand out for their strong earnings potential and strategic positioning: Brookfield Asset Management (TSX:BAM), Propel Holdings (TSX:PRL), and Canaccord Genuity Group (TSX:CF). These financial powerhouses are not just keeping pace with industry trends—they are setting the stage for impressive double-digit growth rates and strong performance in the months ahead.
Brookfield Asset Management stock
Brookfield Asset Management is one of the world’s largest alternative investment managers, with more than $1 trillion in assets under management. The company’s ability to attract institutional capital and deliver strong returns makes it a compelling choice for long-term investors in 2025.
Why consider BAM stock? Strong earnings growth potential and an expanding market presence make the financial sector stock a potential outperformer.
Strong earnings growth: Brookfield’s fee-bearing capital base grew 18% year over year, reaching $539 billion. Fee-related earnings rose 17%, demonstrating the company’s ability to generate consistent revenue streams.
Expanding market presence: Brookfield has positioned itself as a leader in alternative asset management, particularly in digital infrastructure and private credit.
Brookfield Asset Management’s scale and diversified revenue sources make it an attractive long-term investment, particularly as institutional investors continue to allocate more capital to alternative assets. Shares show positive momentum in early 2025, trading just 4.5% below its 52-week high at writing.
BAM stock generated nearly 60% in total returns during the past year, and new investors receive regular dividends that should yield 3% annually.
Propel Holdings stock
Propel Holdings is an emerging financial technology company specializing in online consumer lending. Despite its smaller market cap of $960 million, it has delivered impressive revenue and earnings growth, making it one of the best-performing Canadian financial stocks to buy and hold.
Why consider PRL stock? Explosive revenue growth, strong market demand, and surging profits make Propel Holdings a promising wealth builder.
Revenues grew 45% year over year during the first nine months of 2024, while net income surged by 80%. Market analysts project sustained top-line growth with even stronger earnings growth rates as the company expands its geographic footprint through accretive acquisitions.
Strong market demand: Propel operates in the digital lending space, which continues to expand as more consumers seek online financial services. Its ability to scale efficiently positions it well for continued success.
Propel Holdings presents an exciting high-growth opportunity in the financial sector for investors willing to take on a bit more risk for potentially higher returns.
A forward price-to-earnings (P/E) multiple of 13.8 on PRL stock looks affordable, providing a fair entry point for investors building a stake in a high-flying fintech business in 2025.
PRL stock has generated 314% in total returns during the past three years
Canaccord Genuity Group
Canaccord Genuity is a diversified financial services firm with operations in wealth management and capital markets. While the stock trades nearly 30% below its 52-week high, strong earnings growth and an improving market outlook make it an appealing investment in 2025.
Why consider CF stock? Canaccord Genuity’s earnings growth is outpacing revenue; it’s showing strength in wealth management with a capital markets activity recovery a notable tailwind.
For the past nine months to December 31, 2024, revenue increased 22% year over year, and diluted earnings per share surged 81.5%. Profitability is improving nicely as revenue grows, highlighting operating leverage.
Canaccord’s wealth management division continues to be a key driver of earnings, contributing 76% of adjusted earnings per share (EPS) last quarter. Client assets reached a record $115 billion, reflecting steady inflows and market growth.
The company has seen a modest uptick in capital market activities, particularly in mid-market equities. As conditions improve, Canaccord is well-positioned to benefit from higher trading volumes and deal-making activity.
Despite some near-term headwinds, Canaccord’s strong wealth management business provides a solid earnings base, while its capital markets division offers upside potential as market conditions strengthen.
Canaccord Genuity stock pays dividends that should yield 4% annually to provide passive income. Shares trade at a forward P/E of 8.1, and a P/E-to-growth ratio of 0.6 implies the financial sector stock could be significantly undervalued given its earnings growth potential.
