In 2024, it wasn’t hard to succeed buying Canadian stocks. The TSX Index rose by almost 20% in the year. For an index that ordinarily returns 6–7% per year, it was an exceptional year.
2025 is likely to be a very different year. Canadian investors need be very thoughtful about their stock picks. You will need to fight for your gains.
Are you wondering what stocks could help provide those gains? Here’s a mix of three different Canadian stocks to help navigate a potentially volatile 2025.
A low-risk Canadian staples stock for long-term gain
Loblaws (TSX:L) is one of Canada’s largest grocery and pharmacy retailers. It has grocery options across the economic spectrum. As a result, it has been able to deliver a mix of growth at minimal risk. This Canadian stock has delivered a sector-leading 170% total return in the past five years.
Loblaws has the scale to negotiate great bargains for its consumers. With a market-leading loyalty program, customers remain loyal even despite price increases.
Loblaws just announced plans to invest $10 billion to grow its retail portfolio. The grocery retailer is planning to build 80 stores across Canada. It is placing a greater focus on its consumer-friendly discount-branded stores.
Given strong projected population growth for Canada, this Canadian stock should deliver low-risk, attractive returns in the future.
A Canadian stock for value, income, and growth
If you want a mix of value, income, and growth, Secure Waste Infrastructure (TSX:SES) is another top Canadian stock pick. Secure used to be a commoditized energy services business.
However, this Canadian stock has steadily transformed in the past few years. It divested its cyclical services businesses and focused on waste and energy infrastructure. Today, Secure has a leading competitive position in Western Canada.
Most waste companies demand a strong valuation because they tend to earn contracted streams of high margin cash flows. Waste needs to be disposed and there are only a few players that have the assets to do that.
This Canadian stock trades at a 30%-plus discount to other waste management stocks. As it continues to execute its steady growth program, I expect the market will start to reward it with a higher valuation.
The company generates a lot of free cash. It has been using that cash to aggressively buy back stock (20% of its shares last year and potentially 10% in 2025). SES also pays a nice 2.7% dividend. For a total return story, this could be a great stock for 2025.
A software stock soaring in 2025
Topicus.com (TSXV:TOI) is starting to get some market attention after it delivered some strong strategic moves in early 2025. The company has already announced several acquisitions, including some large ones. A notable move was its investment in a large Polish-listed software consolidator called Asseco.
Topicus has strong operational and management roots. It was spun out from Constellation Software a few years ago.
While the European software firm is completing a similar vertical market software (VMS) consolidation strategy, it has some unique aspects. First, its focus is on Europe where the software market is very fragmented. Second, it has a strong development and organic growth platform.
If you want a Canadian stock that could replicate a similar growth trajectory to that of Constellation Software, Topicus is an attractive pick. It is not the cheapest stock today. However, if it can continue to execute, there is plenty more upside for this Canadian stock.
