Mark Your Calendars for These Investment Gems!

Peter Hodson, the Chief Investment Officer and President of i2i Capital Management, has unveiled his top stock picks, and they’re certainly generating buzz in the financial world.

Market Overview: Navigating the Noise

In a landscape filled with distractions—from political strife to economic uncertainties—investors are keeping a keen eye on a silver lining: interest rates are dropping and corporate earnings are surging. This powerful duo has the market climbing to new heights.

The outlook for 2026 predicts that the S&P 500 will see a revenue growth of over 6.5% and an earnings growth of 13.7%. With Canadian rates already down and more cuts expected in the U.S., market confidence is rebuilding, and capital is flowing back into investments.

The Small-Cap Revival

Small-cap stocks are getting noticed as merger and acquisition activities accelerate. While some fret over a potential market crash, there's also a genuine opportunity for steady gains. The artificial intelligence (AI) wave remains strong, and gold is notably boosting the TSX Index.

Industrials are thriving, demonstrating resilience despite ongoing tariff uncertainties. Inflation remains a concern, but for now, it seems to be in check, contributing to a generally optimistic market outlook.

Top Picks to Consider

**1. Nebius Group (NBIS NASD)** Prepare to be impressed by Nebius, a rapidly expanding AI data center company with ambitious plans. Founded by executives fleeing Russia and establishing their operations in the Netherlands, Nebius recently secured a staggering $19.4 billion contract with Microsoft, marking a significant milestone. With projected revenue nearing $4 billion next year, this stock, despite its recent surge, remains attractively priced.

**2. elf Beauty (ELF NYSE)** This innovative cosmetics and skincare brand is shaking up the beauty industry by offering high-quality products at affordable prices. With robust growth driven by Gen Z and Millennials, elf Beauty's market position looks solid. Recent stock volatility hasn't hindered its upward trajectory, and a rollback on tariffs could further enhance its prospects.

**3. CECO Environmental (CECO NASD)** As an industrial equipment manufacturer, CECO is adept at smart capital allocation and strategic acquisitions. With significant exposure not just locally but also in Europe, their growing backlog points to a bright future. Despite recent volatility, shares are up 62% this year, reflecting investor interest in this solid small-cap.

A Look Back: Previous Picks