How Canadian Resource Stocks Could Outperform in 2025

You don’t need a commodity supercycle, these three Canadian resource stocks could outperform by exploiting niche advantages, discipline, and strategic deals.

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Key Points

  • Cenovus's integrated model and potential MEG Energy merger could boost value despite softer commodity forecasts.
  • Cameco benefits from rising uranium demand and Westinghouse exposure, positioning it for nuclear-driven upside.
  • Tourmaline's scale, low costs, and strong free cash flow make it a conservative gas play that can outperform.

It may sound counterintuitive: we’re not calling for a broad commodity boom. In fact, many forecasts expect softening in commodity prices in 2025. But that environment can create opportunity. The key is picking the right sub-sectors, timing the moves, and leaning on structural trends that favour Canada. Resource stocks that combine leverage, cost discipline, and exposure to scarce materials could outperform a tepid base market. Today, let’s look at three doing just that.

CVE

Cenovus (TSX:CVE) is an integrated oil & gas company. It operates across upstream, midstream transport, and refining and marketing. The integrated model gives it a lot of options. If upstream margins are strong, the refining side can add value. Yet this can also expose it to risks in both segments. That being said, the resource stock looks strong coming off earnings.

CVE stock reported in the second quarter of 2025 earnings per share of $0.33, significantly beating the consensus. However, revenue came in at $10.66 billion, down about 12.5% year over year. This came from production disruptions from Alberta wildfires, so it is not seen as an issue for the remaining parts of the year.

And there is certainly more growth that could happen quite soon, especially as CVE stock looks to try acquiring MEG Energy. The tie-up could be accretive, delivering strong synergies that would benefit both companies. Altogether, it’s one of the more compelling Canadian resource stocks that could outperform in 2025.

CCO

Then we have Cameco (TSX:CCO), a uranium miner, explorer, acquirer and seller of the concentrate. It also offers nuclear services through its Westinghouse stake. It therefore has exposure not just to raw uranium price moves, but also to the downstream side of the nuclear fuel cycle and services.

CCO stock continues to run strong, benefiting from renewed interest in nuclear energy. This is driven by the decarbonization and energy security themes. As the price of uranium mounts, Cameco’s upstream exposure benefits sharply. If operational issues ease, the resource stock can also convert more of its capacity into cash and earnings.

The resource stock is constantly being re-rated upwards, as investors increasingly see uranium and nuclear power as adjacent and even critical to energy security and clean power. Altogether, it’s an interesting Canadian resource stock with even more growth potential in 2025.

TOU

Finally, we have Tourmaline (TSX:TOU), a Canadian resource stock that looks primed to continue its beat in 2025. It’s the largest natural gas producer with a simple edge: scale, costs and market access. The mix gives it leverage if gas tightens this winter or even into 2026. That cushion is helped by disciplined spending as well.

Analysts continue to value the resource stock, with second-quarter earnings demonstrating strong free cash flow, earnings beat, and another special dividend. Management highlighted robust free cash flow as well, and plans to keep climbing.

Tourmaline stock doesn’t need a gas super cycle for it to continue this momentum. It needs merely some decent winter pricing and to continue executing on cost and volumes. With conservative multiples, it now looks like a credible investment for investors seeking outperformance in 2025 and beyond.

Bottom line

This portfolio provides investors with a diversified stake in Canadian resource names. After all, you don’t need commodities to explode, but simply need a few positive surprises in the right areas. When combined, these surprises can create massive upside in the long run.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Cameco and Tourmaline Oil. The Motley Fool has a disclosure policy.

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