Tariffs are significant headwinds for global stock markets. However, despite mounting trade tensions, investors can still scout the market for passive income or capital growth. Some TSX stocks may be out of favour in the current environment, but others have become more attractive.
Suppose you have $5,000 to invest, play smart and allocate your money across different market opportunities. Bird Construction (TSX:BDT), NuVista Energy (TSX:NVA), and Blackline Safety (TSX:BLN) are excellent options due to their favourable business outlook and stability.
Strong foundation
Bird Construction reported strong first-quarter earnings and secured $525 million of new contract awards recently. This $1.5 billion company is one of Canada’s prominent builders. It offers various construction services and provides innovative solutions to the industrial, buildings, and infrastructure markets.
Performance-wise, BDT is up 7% year-to-date. At $27.07 per share, the industrial stock pays a decent 3.1% dividend yield. Unlike most dividend-payers, the payout frequency is monthly. The most recent increase (November 2024) was 50%. Bird has been paying monthly dividends since 2012.
In Q1 2025, construction revenue increased 4% to $717.6 million versus Q1 2024, while net income declined 6% year-over-year to $9.4 million. According to its President and CEO, Teri McKibbon, Bird’s diversification and strategic focus on key market sectors have resulted in an economically resilient business. He sees good revenue growth visibility and further margin accretion this year and into 2026.
Top-performer
NuVista Energy, a $2.9 billion oil and natural gas company, is return-focused owing to its top-quality asset base. The energy stock is a three-time TSX30 winner (2022-2024), the flagship program for Canada’s top-performing stocks. If you invest today, the share price is $14.57 (+5.4% year-to-date).
The average production of 89,516 barrels of oil equivalent per day (boe/d) in Q1 2025 was NuVista’s highest ever in a quarter. In the same quarter, net earnings climbed 214% year-over-year to $112.2 million. Management said the high-quality asset base continues to deliver strong returns across commodity price cycles. Also, NuVista has consistently achieved new production milestones.
For 2025, the plan is to repurchase $100 million of the company’s common shares and allocate at least 75% of any incremental annual free adjusted funds flow above $100 million to share repurchases. Market analysts recommend a “buy” to strong “buy” ratings.
Competitive moat
Blackline Safety is the first connected safety company. The $677.4 million global connected safety technology firm takes pride in its hardware-enabled software-as-a-service (HeSaaS) business model. Its mission-critical hardware and software, including G7 safety wearables, ensure the safety of industrial workers and save lives.
In Q1 2025, the financial results showed a vast improvement. For the three months ending March 31, 2025, total revenues rose 43.1% to $37.7 million compared to Q1 2024. Net loss thinned 80.5% year-over-year to $1.1 million. Management expects strong revenue growth, positive EBITDA and positive adjusted EBITDA in fiscal 2024 to carry over to fiscal 2025.
Blackline’s global footprint has expanded to over 75 countries. Its customer base includes large-cap companies in the consumer goods, energy, and industrial sectors. The HeSaaS business model provides a competitive moat.
Investment opportunities
Volatility is a constant presence in the stock market. Fortunately, despite headwinds and disruptions such as tariffs, new investment opportunities emerge across various sectors.
