In this article, we will take a look at the 10 Best-Performing Canadian Stocks in 2025.
According to Deloitte’s January 2025 report, the Bank of Canada’s decision to shift monetary policy from neutral to slightly stimulative (2.25%) by the middle of the year would assist the Canadian economy grow faster in 2025. Inflation is also predicted to continue close to the 2% target in the coming year, improving the outlook. However, the main concern for 2025 is if and when business confidence will recover. Companies may remain isolated in 2025 due to uncertainties surrounding the newly elected Trump Administration’s tax, regulation, and trade policies.
Canada remains the United States’ second-biggest commercial partner and largest export market. In the first three quarters of 2024, around C$800 billion ($600 billion) in goods passed the Canada-US border. Including trade in services raises the totals to C$910 billion ($683 billion). That equates to C$3.6 billion in total import and export movements every day. In that vein, additional tariffs are not something the Canadian economy wants to contend with. That said, U.S. President Donald Trump’s threat to levy 25% import duties on all Canadian goods and 10% on energy was put on hold for 30 days earlier this month after Canada implemented additional border security measures. On February 9, however, Trump said that he will impose fresh 25% tariffs on all steel and aluminum imports into the United States, in addition to current metals charges, in another significant escalation of his trade policy reform. However, in an exclusive TV interview, Canadian Trade Minister Mary Ng indicated that her country was prepared to retaliate should unfair tariffs be imposed:
“Should Canada get tariffs that are punishing, tariffs that will hurt our economy, everything will be on the table.”
As the fear of a trade war rises, Canadian investors are taking advantage of a weaker currency and anticipated volatility, seeking refuge in gold and stocks of companies that manufacture commodities with few, if any, substitutes, such as uranium. In addition, industries such as financial, telecom, real estate, energy, and commodities, which make up about two-thirds of Canada’s primary stock market index, the S&P/TSX Composite, are likely to benefit from exemptions or avoid the immediate implications of tariffs. However, if the Canadian economy enters a recession, analysts warn that salaries may fall. Despite the tariffs, the TSX has held close to its January record high, thanks primarily to metals-related shares and considerable increases in technology companies.
Nonetheless, the Canadian stock market is in an interesting space for now. With that in mind, we will take a look at some of the best performing Canadian stocks this year.
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Our Methodology
To come up with our list of the best-performing Canadian stocks in 2025, we reviewed several Canadian stocks trading on the U.S. market and sorted them by their 1-year performance as of February 14, in ascending order. Additionally, we included hedge fund sentiment on each stock to provide further insight into each company’s outlook.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Royal Bank of Canada (NYSE:RY)
1-Year Returns: 21.68%
Number of Hedge Fund Holders: 22
The Royal Bank of Canada (NYSE:RY), one of Canada’s largest banks by assets, is a multinational financial services company that provides corporate banking, wealth management, insurance, capital markets, and personal and commercial banking. The bank is mostly focused on Canada, while it also operates in the United States and other nations.
In the fourth quarter of 2024, Royal Bank of Canada (NYSE:RY) recorded revenue of more than C$15.07 billion, up from C$12.6 billion in the previous year. Net income for the quarter was C$4.22 billion, up from C$3.9 billion in the same period of the previous year.
Argus boosted its price target for Royal Bank of Canada (NYSE:RY) to $140 from $132 earlier in December, while keeping the shares at a Buy. According to the firm, RBC has a strong competitive position, with a growing market share in Canadian banking and a decent wealth management franchise. Argus adds that the run-rate yearly savings with HSBC Bank Canada, which was bought in March 2024, have already reached $400 million, with a total of $740 million predicted by March 2026.
9. Barrick Gold Corporation (NYSE:GOLD)
1-Year Returns: 22.46%
Number of Hedge Fund Holders: 42
Barrick Gold Corporation (NYSE:GOLD) is a global mining corporation that explores, develops, produces, and sells gold and copper. The company’s operations span eighteen countries.
On February 14, Raymond James analyst Brian MacArthur reduced the price target for Barrick Gold Corporation (NYSE:GOLD) to $23 from $24. Despite this drop, the analyst maintained his Outperform rating for the mining company’s shares. MacArthur emphasized the strategic importance of the no-premium acquisition with Randgold, which added tier-one assets and free cash flow to Barrick’s portfolio. However, he also stated that the transaction raised the company’s jurisdictional risk due to Randgold’s substantial African interests.
Furthermore, Barrick Gold Corporation (NYSE:GOLD) recently posted fourth-quarter results that met analyst projections, despite sales falling short. Adjusted profits per share were $0.46, which matched analysts’ consensus estimates. However, the revenue was recorded at $3.65 billion, which was lower than the expected $3.65 billion. In addition to the earnings release, Barrick Gold declared a quarterly dividend of $0.10 per share and said it had repurchased 28.675 million shares under its buyback program in 2024.
Sound Shore Management stated the following regarding Barrick Gold Corporation (NYSE:GOLD) in its Q3 2024 investor letter:
“For example, global gold and copper miner Barrick Gold Corporation (NYSE:GOLD) rose after posting earnings that topped forecasts driven by improved cost performance as well as higher metals prices. We initiated our investment earlier this year when the stock was trading at below normal price to earnings and price to book valuations. The depressed valuation was largely due to long-term issues driven by poor acquisitions and shorter-term inflationary pressures that had been a drag on profitability. Following Barrick’s 2019 merger with Randgold, the latter’s senior management team took the reins and have since streamlined and optimized the company’s once sprawling asset base. Today, Barrick is set to improve operations and drive organic growth which, along with a better price environment, we believe should improve returns on capital. Bolstered by a nearly debt-free balance sheet and strong free cash flows, the company is well positioned to increase dividends, share buybacks and improve its valuation.”