Andrew Pink’s Top Picks for October 30, 2025
Published:
Andrew Pink, Portfolio Manager, LDIC
Focus: Canadian mid and large caps
Top picks: Exchange Income Corp, Granite REIT, WSP Global
MARKET OUTLOOK:
Central banks continue their shift toward easier policy by lowering interest rates to stimulate economic conditions which has fueled capital markets.
There is room to continue as long as inflation remains contained and there are ongoing risks to growth and the labour market.
We expect Q3 corporate earnings now underway to remain healthy, following a strong Q2 where profits beat expectations by nearly six per cent and grew 8.7 per cent year over year on average.
In Canada, stalled immigration under Carney may weigh on GDP growth but will help relieve pressure on housing and infrastructure. Government spending will remain elevated, adding to an already challenging debt profile.
When released on Nov. 4, the federal budget will likely understate actual expenditures, while defense spending is expected to stay high to meet NATO commitments through 2035.
Persistent fiscal deficits could weigh on Canada’s credit rating, which may weaken the dollar, and dampen investor sentiment.
Global trade tensions appear less severe than initially feared. Although there remains some friction between the United States and Canada, the effective tariff rate on Canadian goods is roughly six per cent including the USMCA protections, which is manageable. However, the agreement is up for renegotiation by the middle of next year, creating potential for renewed volatility in 1H 2026.
The AI boom continues to act as a powerful form of economic stimulus, with the largest technology firms investing hundreds of billions to gain first mover advantages. Eventually, the pace of spending will slow, which would disrupt market momentum.
Gold remains a standout performer, rising 47 percent in the first three quarters of 2025 as central banks reduce exposure to U.S. treasuries and increase allocations to gold. Investors have also turned to the metal as a hedge against inflation and ongoing geopolitical uncertainty. With gold and materials now accounting for 16 per cent of the TSX and contributing more than half of its 24 per cent year-to-date return through Sept. 30, persistent demand could mean the current gold bull cycle may still be in early stages
Top Picks
Exchange Income Corp (EIF TSX)
Exchange Income offers a diversified and resilient earnings base driven by its Aerospace & Aviation and Manufacturing platforms. The company continues to deliver steady organic growth complemented by strategic, accretive acquisitions such as Canadian North, which expands its northern aviation footprint and provides long-term contracted revenue.
Management’s disciplined capital allocation and strong execution underpin rising EBITDA guidance and consistent outperformance versus expectations. With improving yields, strong U.S. demand for manufacturing products, and an expanding pipeline of essential service contracts, EIF remains well positioned to compound cash flow and dividends over the long term.
Granite REIT (GRT-U TSX)
A Canadian industrial REIT with properties across the U.S., Canada, and Europe. The REIT continues to deliver strong operating results driven by robust leasing, solid same-property NOI growth, and favorable industrial fundamentals.
Following a brief demand slowdown tied to trade uncertainties, management has raised guidance for both SPNOI and FFO, reflecting healthy internal growth and disciplined capital allocation. Recent share buybacks underscore balance sheet strength, while renewed acquisition activity should support external growth. Trading at a meaningful discount to NAV, GRT offers an attractive combination of stability, growth, and valuation upside.
WSP Global (WSP TSX)
A leading, engineering, and professional services firm with deep expertise across all major infrastructure sectors, including transportation, environmental services, water, and energy. Its global scale and local market presence, supported by 73,000 employees across most OECD countries, provides a competitive advantage in winning both public and private sector mandates. The company combines consistent organic growth with disciplined, accretive M&A, delivering a five-year revenue CAGR above 12 per cent and earnings CAGR above 20 per cent through 2024.
Looking ahead to 2027, WSP’s strategic plan targets more than 40 per cent revenue growth, over 50 per cent earnings growth, and a 70 per cent increase in free cash flow, underpinned by steady margin expansion and a current global infrastructure backlog of more than US$16 billion, or almost one year of revenue.
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Source
https://www.bnnbloomberg.ca/markets/2025/10/30/andrew-pinks-top-picks-for-october-30-2025/
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