Investment Insights from a Finance Leader

In the ever-evolving world of finance, Brianne Gardner, a Senior Wealth Manager at Velocity Investment Partners, has identified key investment opportunities for June 16, 2025. Focusing on large-cap stocks in the Canadian and U.S. markets, her top three picks are ATS Corp, Altius Minerals, and Salesforce.

Market Overview: Navigating Geopolitical Tensions and Economic Trends

The current market landscape presents both challenges and opportunities. Recently, oil prices surged over 7%, briefly hitting US$74 per barrel, as unrest in the Middle East raises concerns over supply chain stability. This situation has implications beyond energy, with shipping insurance costs climbing and early warnings of strain on freight and industrial inputs.

Despite these challenges, U.S. equities show resilience, rebounding from an April slump with the S&P 500 and Nasdaq both up nearly 3% year-to-date. This recovery is fueled by easing inflation, strong consumer demand, and impressive earnings reports, with analysts projecting earnings growth of 9% this year and 13.7% next year.

Canada's Markets: A Silver Lining Amid Global Challenges

Canada’s TSX has outperformed, propelled by surges in gold, industrials, and energy. Just last week, the index reached record-high levels, though global trade tensions and rising costs loom as potential threats to profitability, especially in manufacturing and resource sectors.

While the Bank of Canada remains cautious, opting to hold interest rates steady despite domestic disinflation, the balance between local economic progress and global uncertainties is critical. Investors must stay flexible and prioritize sectors poised for long-term growth, like AI and industrials.

Top Investment Picks for June 2025

1. ATS Corp (ATS TSX): A Leader in Custom Automation Systems

ATS Corp stands out as a Canadian innovator in custom automation systems, enhancing efficiency across major manufacturing sectors. With an impressive $860 million in recent bookings and a staggering $2.1 billion backlog, ATS exhibits strong revenue prospects. The company is back on track after addressing previous client challenges in the electric vehicle space, and anticipates its leverage ratio to decrease to 2.7x by fiscal 2026—setting itself up for strategic acquisitions in verticals like life sciences.

2. Altius Minerals (ALS TSX): A Royalty Model with High Rewards

Altius Minerals presents a unique investment opportunity as a royalty company, generating revenue from mines without owning them. This model yields high margins and is strategically positioned in essential sectors like copper and renewables that are trending upward. With over $200 million in marketable securities and healthy cash flow, Altius's disciplined approach to capital allocation promises solid long-term returns and a modest 1.4% dividend.

3. Salesforce (CRM NYSE): The Future of CRM Software

Salesforce leads the charge in customer relationship management software, transforming how businesses leverage data. With innovative offerings like Customer 360 and Data Cloud, the company is now at the forefront of AI-powered solutions. Salesforce’s recurring AI-driven revenue surpasses US$1 billion, reflecting a 120% year-over-year increase. Trading at approximately 22x forward earnings, Salesforce remains a top contender for tech investors, with over 30% potential upside.

Historical Performance: A Look at Past Picks

Reflecting on previous top picks from July 17, 2024, Visa has seen a remarkable return of 31%, while UnitedHealth faced challenges with a -46% drop, showcasing the volatile landscape investors navigate. Overall, Gardner’s previous average return stands at -3%, underscoring the complexities in the market.

In this dynamic investment climate, maintaining flexibility, selectivity, and a focus on high-growth sectors will be crucial for capitalizing on emerging opportunities.