Oh, the thrill of spotting potential skyrockets in the stock market! This can be a fairly tricky situation. Yet with the right future focus, investors could have the chance to get in, if not at least near, the ground floor.
That’s why today we’re going to dive into three Canadian gems. Those being Cameco (TSX: CCO), Air Canada (TSX: AC) and Lumine Group (TSXV: LMN) – stocks that could just make your portfolio shine in 2025 and beyond. So let’s get right into it.
Source: Getty Images
Cameco
First up, Cameco, the titan of uranium. The Canadian stock’s recent earnings report was a mixed bag. It posted net earnings of $171.9 million for the full year ending December 31, 2024, a dip from the previous year’s $360.9 million. However, the fourth quarter told a brighter story with net earnings of $135 million and adjusted net earnings of $157 million, in part thanks to robust performances in their uranium and Westinghouse segments.
Cameco’s strategic moves are worth noting. Their acquisition of a 49% stake in Westinghouse is expected to bolster its earnings before interest, taxes, depreciation and amortization (EBITDA) by $445 million to $510 million in 2024. It’s also ramping up production at key sites like McArthur River, Key Lake and Cigar Lake, aiming for 18 million pounds per year each. With the world leaning towards nuclear energy, Cameco stock’s positioning seems spot-on.
Lumine
Now, let’s chat about Lumine Group. This tech player has been making waves, especially after its spinoff from Constellation Software. The Canadian stock reported quarterly revenue growth of 35.1% year-over-year, reaching $624.4 million. However, profitability remains a challenge, with a net loss of $1.8 billion for the trailing 12 months. Yet, the operating margin stands at a healthy 18.3%, indicating potential for future profitability.
Lumine’s focus on acquiring and nurturing niche software businesses could be a game-changer. If it manages to streamline operations and turn those revenues into profits, we might see a significant turnaround. Investors with a taste for tech and a bit of patience might find Lumine’s journey intriguing.
Air Canada
Lastly, we have Air Canada, the nation’s flag carrier. Despite a net loss of $644 million in Q4 2024, primarily due to a one-time pension charge, the airline achieved record annual revenues of $22.3 billion, marking a 2% increase from 2023. The adjusted EBITDA for the quarter grew by 33% to $696 million, reflecting strong operational performance.
Looking ahead, Air Canada’s ambitions are soaring. It’s targeting a 36% increase in operating revenue by 2028, banking on robust leisure travel demand. The airline plans to expand its network, especially in the Asia-Pacific region, and is eyeing operating revenue of about $30 billion by 2028. A strategic focus on leveraging brand strengths and network advantages positions them well for future growth.
Bottom line
So, while past performances provide a snapshot, it’s the future outlook that holds the promise. Cameco’s strategic expansions, Lumine’s growth potential in the tech sector, and Air Canada’s ambitious revenue targets make them compelling considerations for investors eyeing 2025 and beyond. As always, it’s essential to align these opportunities with your investment goals and risk appetite. But these three Canadian stocks certainly look like a great start.
