Brianne Gardner, Senior Wealth Manager, Velocity Investment Partners, Raymond James
Focus: Canadian & U.S. large caps
Top picks: WSP Global, Costco, Broadcom
MARKET OUTLOOK:
This year has been about resilience more than momentum. Coming into the year, many investors expected higher interest rates to slow the economy much more sharply.
Instead, the U.S. delivered a softer landing. Growth cooled enough to bring inflation down, but not enough to break earnings or consumer spending. That balance is still visible today. Markets are quiet and mixed in holiday trading, but the bigger picture hasn’t changed.
The labour market is still holding up, but it’s clearly cooling, which has helped ease inflation pressures without triggering a downturn.
Higher-income consumers continue to spend, and companies are still investing, particularly around AI, which has shifted from a concept to a real spending cycle this year. What has changed is how investors are behaving. Valuations are higher, rate cuts are being pushed further out, and leadership is narrower. This is no longer a market where everything goes up. Returns are increasingly driven by execution, earnings quality, and balance sheets rather than broad multiple expansion.
Canada’s market had a more uneven year, but the setup has quietly improved. Inflation has cooled, growth has moderated, and uncertainty around the Bank of Canada’s next move is more balanced than restrictive. That tends to favour companies with visibility and long-dated cash flows.
Overall, this has been a year where patience mattered more than prediction. As we look ahead, we think staying selective and focused on quality and visibility remains the right approach, rather than reacting to every headline.
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TOP PICKS:
WSP Global (WSP TSX)
WSP is a global engineering and consulting firm involved in major infrastructure, power, and environmental projects around the world. What we like most is visibility. Governments and utilities plan years ahead, which gives WSP a steady pipeline of work even when economic growth slows. That stability is showing up in results, with management recently raising its net revenue outlook to roughly $14 billion, reflecting strong demand across regions.
Strategically, WSP continues to look for ways to scale, and recent takeover chatter around Jacobs highlights its ambition to deepen its U.S. presence and capabilities. Analysts have modestly raised fair value to about $329, acknowledging strong execution even after a good run. We like WSP as part of the portfolio as a high-quality compounder tied to long-cycle infrastructure spending.
Costco (COST NASDQ)
Costco is one of the most consistent businesses in global retail. Its membership model drives loyalty, recurring revenue, and steady traffic that’s hard to replicate. Even in a tougher consumer backdrop, Costco continues to gain share because shoppers trust its pricing, quality, and value.
The membership base is the engine, with renewal rates around 90 per cent supporting predictable cash flow and long-term compounding. Scale is a key advantage, allowing Costco to manage costs better than peers while keeping prices low. Valuation is full at about 50 times forward earnings, but that premium reflects durability rather than hype. That’s why Costco remains a top pick for us as a steady compounder through cycles.
Broadcom (AVGO NASDQ)
Broadcom sits at the center of the AI infrastructure buildout, supplying the custom chips and networking that power large data centers. What sets it apart is custom silicon, with chips designed alongside its biggest customers, creating deep, sticky relationships and long-term demand. That demand is real, with AI-related revenue growing around 30 per cent annually, driven by large-scale deployments.
Broadcom also isn’t just an AI story. Its VMware software business adds recurring revenue and helps smooth semiconductor cycles. There are risks, including AI customer concentration and margin volatility, but Broadcom’s role as core infrastructure ties demand to overall AI spending rather than any single model. Overall, we still like Broadcom as a key beneficiary of AI workloads scaling across the industry.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| WSP TSX | Y | Y | Y |
| COST NASDQ | Y | Y | Y |
| AVGO NASDQ | Y | Y | Y |
PAST PICKS: JUNE 16, 2025
ATS Corp (ATS TSX)
Then: $42.33
Now: $38.78
Return: -8%
Total Return: -8%
Altius Minerals (ALS TSX)
Then: $27.32
Now: $39.74
Return: 45%
Total Return: 46%
Salesforce (CRM NYSE)
Then: US$263.88
Now: US$265.60
Return: 0.65%
Total Return: 1%
Total Return Average: 13%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ATS TSX | Y | Y | Y |
| ALS TSX | Y | Y | Y |
| CRM NYSE | Y | Y | Y |
