Brianne Gardner, senior wealth manager at Velocity Investment Partners, Raymond James, shares her outlook on Canadian & U.S. Large Caps.

Brianne Gardner, Senior Wealth Manager, Velocity Investment Partners, Raymond James

Focus: Canadian & U.S. Large Caps

Top picks: Gildan Activewear, Element Fleet, Honeywell

MARKET OUTLOOK:

North American markets are entering a new chapter. The Federal Reserve and the Bank of Canada have delivered interest rate cuts to kick-off a renewed cycle after months of anticipation. The immediate reaction was initially mixed, which is not a surprise. Equities often pause after policy changes, as investors recalibrate the path and pace of easing. The mid-September softness didn’t last long, and we still could see a bigger pullback from all-time highs, though we do not expect a break in trend. Leadership has narrowed slightly, as tech and media giants are still leading the charge, with utilities and discretionary following close behind.

In Canada, the leadership setup is similar but with a TSX twist. Interest rate relief is a tailwind, yet the index is still tethered to how U.S. policy and global growth evolve. Financials and materials continue to anchor performance, supported by gold prices and optimism for our economy. Bank stocks climb as credit quality remains manageable, but net interest margins compress. Real estate names are digesting the higher cost of capital and mortgage resets. Industrials are lagging, waiting for clearer outlooks for trade and economic growth.

Our stance is constructive, but realistic. More cuts are coming, but central banks are signaling patience, so data will keep driving week to week stock price movement. Jobs numbers, inflation prints, and speeches will move markets but given our 2026 outlook, the playbook is to stay invested, emphasize quality balance sheets and cash flow, and add selectively on weakness to areas with durable demand and reliable profitability. Aside from April’s volatility, we have not seen much of it over the last year, so we could see it become a feature of this next phase, and disciplined positioning can use it to advantage.

TOP PICKS:

Brianne Gardner’s Top Picks: Gildan Activewear, Element Fleet & Honeywell Brianne Gardner, senior wealth manager at Velocity Investment Partners, Raymond James, shares her top stock picks to watch in the market.

Gildan Activewear (GIL TSX)

Gildan is the quiet leader in basics like t-shirts, socks, and underwear. Its vertically integrated supply chain is a real moat, controlling everything from yarn spinning in the U.S. to assembly in the Caribbean. That keeps costs low and margins steady, even as rivals struggle. In a world where consumers are looking for deals, Gildan is positioned to win. The “Sustainable Growth” strategy has been to simplify products, optimize factories, keep prices sharp, which has expanded margins and improved cash flow. Technically, it’s poised for a breakout and at 16 times forward earnings with mid-teens earnings per share (EPS) growth and ongoing buybacks. It has room to run.

Element Fleet (EFN TSX)

Element is one of the world’s largest fleet managers, helping companies finance, maintain, and optimize vehicles across North America, Australia, and Mexico. The growth story is in digitization: the new Element Mobility platform uses AI and telematics to make fleets smarter and more efficient. We like the strong free cash flow, a rising dividend, and active buybacks. With leverage under control and a clear runway in EV transition and data-driven services, Element is a steady compounder in an industry that rarely gets headlines but delivers consistent returns.

Honeywell (HON NASD)

Honeywell is an industrial powerhouse with artificial intelligence (AI) exposure to aerospace, automation, and advanced materials. It’s a major software contractor for U.S. defence, energy, and infrastructure; areas where the Donald Trump administration is still spending. Their suite of AI-enabled cybersecurity solutions will help companies reduce risk in industrial environments. The recent price pullback below its 200 day has typically been a great entry point, and the stock is still trending higher on a long-term upward chart.

Disclosure:PersonalFamilyPortfolio/FundGIL TSXYYYEFN TSXYYYHON NASDYYY

PAST PICKS: NOVEMBER 5, 2024

Brianne Gardner’s Past Picks: Thermo Fisher Scientific, Coca-Cola & CES Energy Solutions Brianne Gardner, senior wealth manager at Velocity Investment Partners, Raymond James, discusses her past stock picks and how they’re doing in the market today.

Thermo Fisher Scientific (TMO NYSE)

Then: US$560.79

Now: US$460.24

Return: -18%

Total Return: -18%

Coca-Cola (KO NYSE)

Then: US$65.37

Now: US$66.09

Return: 1%

Total Return: 4%

CES Energy Solutions (CEU TSX)

Then: $8.17

Now: $9.23

Return: 13%

Total Return: 15%

Total Return Average: 0%

Disclosure:PersonalFamilyPortfolio/FundTMO NYSEYYYKO NYSEYYYCEU TSXYYY