The ongoing market turmoil might make even the most seasoned investor nervous. However, this pullback in valuations allows investors with a sizeable risk appetite to gain exposure to quality blue-chip stocks trading at a discount. In this article, I have identified three blue-chip stocks every Canadian should consider owning in 2025.
Image source: Getty Images
Is this TSX blue-chip stock undervalued?
In 2024, Canadian Natural Resources (TSX:CNQ) reported record annual production, achieving several operational milestones while advancing strategic acquisitions that expanded its asset base.
It reported a total production of 1.36 million BoE (barrels of oil equivalent) per day, including over one million barrels per day of liquids. CNQ’s oil sands mining and upgrading operations hit a record production of 472,245 barrels per day for the year and 534,631 barrels per day in Q4.
“We have a long track record of consistently delivering strong, industry-leading results driven by our safe, reliable operations and relentless focus on continuous improvement,” said President Scott Stauth during the company’s earnings call.
Canadian Natural’s recently completed acquisition of additional working interest in the Albion Mines will add approximately 93,500 barrels per day of zero-decline production once a swap transaction closes in the second quarter (Q2) of 2025. It also acquired Chevron’s 70% operator working interest in Duvernay assets, which are expected to average 60,000 BoE per day in 2025.
Financial results remained robust, with an adjusted funds flow of $14.9 billion for 2024, including $4.2 billion in Q4. It returned approximately $7.1 billion to shareholders last year and approved a 4% dividend increase, marking its 25th consecutive year of dividend growth.
Down 30% from all-time highs, CNQ stock offers a tasty dividend yield of almost 6%. Moreover, it trades at a 36% discount to consensus price trading estimates in April 2025.
Is CNR stock a good buy right now?
Another blue-chip TSX stock is Canadian National Railway (TSX:CNR), which is down 23% from its all-time highs. During a recent conference, Canadian National Railway chief executive officer (CEO) Tracy Robinson expressed confidence in the company’s growth trajectory. Robinson highlighted CN’s strong January performance and commitment to delivering earnings growth between 10% and 15% in 2025.
CN’s volume growth projection is largely independent of broader economic conditions, with over 50% coming from company-specific customer initiatives and a third from labour normalization after disruptions in 2024.
Regarding tariffs, Robinson noted that approximately 30% of CN’s volume crosses the Canada- US border, with 20% moving southbound. The CEO also addressed recent operational improvements, including the benefits of splitting the chief operating officer role into two positions and the success of CN’s commercial initiatives in areas like fuel distribution and NGL exports.
Looking ahead, CN expects margin improvement in 2025 driven by volume growth, pricing above rail inflation, and the absence of labour disruptions that impacted 2024 results.
Is TRI a good stock to own in April 2025?
Thomson Reuters (TSX:TRI) is among the largest companies in Canada. With a market cap of $108 billion, more than 80% of its revenue is recurring and tied to multi-year contracts, allowing it to benefit from stable cash flows across market cycles.
Thomson Reuters serves multiple markets, including legal and tax, with nondiscretionary products essential for customers’ daily work functions. Its international expansion strategy aims to increase non-North American revenue from about 20% to 30%, with current international operations growing in the low to mid-teens. Recent acquisitions like Peguero have supported this geographic diversification.
The company invests more than $200 million annually in AI initiatives, focusing on product integration and expanding capabilities across its portfolio.
