Brianne Gardner’s Top Picks for July 31, 2026

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

Focus: Canadian & U.S. Large Caps

Top picks: Micron, Citigroup, TFI International

MARKET OUTLOOK:

Markets have largely drifted sideways since the beginning of June as investors digested higher valuations, shifting interest-rate expectations and a steady stream of geopolitical headlines.

Markets regained their footing this week as investors looked past recent volatility and turned their attention back to corporate earnings. The latest results reinforced that businesses continue investing heavily in artificial intelligence. While investors have become more selective, AI investment cycle remains intact and continues creating opportunities across multiple sectors.

The economy also gave investors plenty to think about. Growth slowed more than expected in the second quarter, while inflation has slightly eased since a month ago and the labour market remained resilient.

Rather than pointing to a recession, we believe the data points to an economy settling into a slower but more sustainable pace. That is encouraging, although interest rates are likely to remain elevated until policymakers gain greater confidence that inflation is firmly under control.

In Canada, the TSX has remained resilient despite continued trade uncertainty with the United States. Energy led the market this month, followed by technology, where software companies were the primary driver. Strong corporate results have also supported confidence in many of Canada’s largest businesses. Canada’s exposure to commodities, combined with a resilient financial sector, continues to provide a solid foundation for long-term investors.

Looking ahead, markets will balance economic data with another busy stretch of earnings. Companies continue delivering solid results, economic growth remains positive, and the long-term themes supporting AI and infrastructure investment leave us constructive on the outlook.

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TOP PICKS:

Micron (MU NASD)

We own Micron. We added the stock in April, and it’s already up about 70 per cent, but we still believe there’s more room to grow over the long term. Micron makes two main types of memory. DRAM powers AI servers and data centers, while NAND stores photos, apps, and files in devices like phones and laptops. The company is one of the biggest winners from the AI boom. Demand for its advanced AI memory chips remains stronger than supply, and management expects that to continue for years. What we like is that memory is becoming much more valuable. Long-term customer agreements are making the business more predictable than in past cycles. Even after the rally, Micron trades at just 6x forward earnings. Even if future profits were cut in half, it would still trade below its long-term average valuation of 16x. Memory has always been a cyclical business, but we think AI is creating a much longer period of strong demand than we’ve seen before.

Citigroup (C NYSE)

We don’t own Citigroup directly, but we do have indirect exposure through one of our ETFs. Citigroup is one of the world’s largest global banks, helping businesses and governments move money across nearly 160 countries through its global payments and trade network. The latest quarter was very strong, with record revenue driven by investment banking, trading, and treasury services. What we like most is the turnaround. After years of simplifying the business and cutting costs, Citi is becoming a leaner, more profitable bank. Management also raised the dividend by 12 per cent and launched a major share buyback, showing confidence in the business and its capital position. We think Citi is stronger than it was a few years ago. While its global footprint brings more risk, we believe the improving business and attractive valuation make it one of the best opportunities in banking today.

TFI International (TFII TSX)

We own TFI International, and it’s one of our top picks because we believe the freight cycle is starting to recover. Almost everything you buy has likely spent time on a truck. TFI helps move those goods across Canada, the U.S., and Mexico, from building materials and groceries to online purchases. The latest quarter suggests more trucks are getting back on the road. Revenue reached a record and earnings climbed as freight demand continued to improve. What really sets TFI apart is management. For years, they’ve been buying smaller trucking companies, making them more efficient, and turning them into stronger businesses. That discipline has also allowed TFI to keep increasing its dividend, buying back shares, and still have the flexibility to make new acquisitions. As the economy strengthens, more goods need to move. We think TFI is well positioned to benefit, which is why it remains one of our top picks in Canada.

Past Picks: July 23, 2025

ABBOTT LABS (ABT NYSE)

Then: US$125.83

Now: US$104.18

Return: -17%

Total Return: -15%

Chipotle Mexican Grill (CMG NYSE)

Then: US$52.78

Now: US$37.43

Return: -29%

Total Return: -29%

Motorola Solutions (MSI NYSE)

Then: US$422.17

Now: US$431.51

Return: 2%

Total Return: 3%

Total Return Average: -14%