Some of the best performing Canadian stocks of 2025
Lundin shares rose as gold prices hit new highs. This is because global central banks have been building up gold reserves amid rate uncertainty. Celestica shares rallied as investment in artificial intelligence (AI) infrastructure increased. Bombardier shares rose as it launched its flagship Global 8000 aircraft and secured a $1.7 billion order for 50 Challenger and Global aircraft, with an option to exercise an order for an additional 70 aircraft for $4 billion.
While each stock had a strong advantage thanks to their respective tailwinds, one stock will be able to rule them all by supporting growth.
One Canadian stock will rule them all in 2025
Celestica is a third-party electronics manufacturer that depends on demand for servers to fuel its stock price growth. It doesn’t have the niche for that Broadcom And Nvidia enjoy with their specific AI chips that allow them to negotiate a premium price. It could face competition as more companies enter the electronics manufacturing space. This could be a good time to sell the stock while it is trading near record highs.
Lundin Gold shares are sensitive to the gold price, meaning this is a good time to book profits rather than buy high.
One stock that can maintain its high valuation is Bombardier, because its business jets are in high demand. Passenger aircraft manufacturers Airbus And Boeing suffer from supply shortages and quality problems respectively. Canada had ordered 16 F-35 stealth fighters from the US Lockheed Martin Corp, but the tariff war has prompted Canada to consider other markets for defense purchases to reduce dependence on the United States.
A recent one news item confirmed by the Globe and Mail stated that Bombardier is in talks with Sweden Saab to assemble Gripen fighter jets in Canada. A shift in global trade could provide opportunities for Bombardier to win more orders from countries that look beyond the United States.
This makes Bombardier a stock to buy and hold for the long term.
What can you expect from Bombardier after 2025?
Bombardier could win more orders for its Global 8000 aircraft. It could also expand its defense aircraft segment if an opportunity presents itself. So far, it is refurbishing its Challenger and Global aircraft for defense. They are not fighter jets, but are used for surveillance. If the Saab deal materializes, it will open up a whole new revenue stream for Bombardier.
On Investor Day 2024 presentationBombardier announced its plans to allocate excess capital after 2025. Approximately $300 million will be allocated to product upgrades and organic growth. Any surplus will be used to pay dividends, buy back shares and reduce debt. It will also look for acquisition opportunities in the defense aftermarket and other partnership deals.
If any of the above announcements around dividends, acquisitions or partnerships come to fruition, it will send Bombardier’s share price soaring in 2026. While buying at the highest price is not recommended, it is a stock to hold in 2026 and beyond.
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