Bank of Montreal (TSX:BMO) Chief Strategist Brian Belski is a seasoned veteran who’s worth tuning into whenever he has a bold prediction. I have deep respect for the man who correctly called for the TSX Index beating the S&P 500 in 2025. While the year still has just over three months to go, it doesn’t look like the S&P 500 has what it takes to outpace the TSX Index, especially as investors grow just a bit more wary over valuations, which remain relatively stretched on the U.S. market indices.
Either way, Belski recently named a handful of Canadian stocks that investors might wish to consider buying as the “bull market lives on” and the S&P 500 looks to make a run for 7,000 by the end of the year. Here are three standouts.
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Gildan Activewear
Gildan Activewear (TSX:GIL) is a fantastic Canadian company that doesn’t get as much attention as it deserves, probably because of its mere $12 billion market cap. Either way, the long-time consolidator kicked off a powerful rally that started in the spring season of 2024. Over the last two years, shares have more than doubled, rising just shy of 119%.
Despite the surge, the shares still look as undervalued as ever, currently going for 18.5 times trailing price-to-earnings (P/E). The generic clothing maker has been able to keep operating costs low, thanks in part to its exceptional managers. In a market that’s gravitating towards value, I think the essential apparel maker can continue to shine.
The latest Hanesbrands acquisition, I think, was a genius one that could bring forth another wave of gains. Brian Belski and his team are spot-on to highlight the name.
Quebecor
Quebecor (TSX:QBR.B) is another fairly small ($9.8 billion market cap) company that I’ve been incredibly bullish on over the last two years. As its telecom rivals soured, QBR.B stock has risen close to 49% in the last two years. The rally probably isn’t over yet, either, with its low multiple (12.8 times trailing P/E) and the disruptive wireless force that is Freedom Mobile.
Indeed, Vidéotron is a Quebec-based success and as the same managers look to replicate the success nationwide, I do think there’s more room for steady, predictable earnings growth. The stock has a 3.3% yield, with a chart that’s the envy of the Canadian telecom industry.
As noted previously, Canadians want value and through Freedom, Quebecor is providing that value in a big way to an expanding number of folks across the nation. There’s still work to be done as Quebecor invests in growth, but with a pristine balance sheet and lower rates on the way, I see the telecom as having the means to lead the pack for years to come.
Waste Connections
Finally, we have Waste Connections (TSX:WCN), a brilliant defensive pick that’s slid 15% from its recent highs. Indeed, waste collection isn’t the most attractive business out there, especially in an environment where everybody is focused on AI.
That said, the 21.6 times forward P/E multiple looks very reasonable, especially for a firm with one of the widest economic moats in Canada. The 0.73% dividend yield isn’t anything to get too excited about, but it is poised for some serious long-term growth. As such, shareholders should stick with the name, even as the defensives take a backseat in this raging bull market. For beginning investors worried about a recession, WCN stock might be the best name to consider buying up.
