TD Securities’ head of research shares top Canadian stock picks

Andre-Philippe Hardy, head of Canadian research at TD Securities, highlighted three of his top stock picks in the Canadian market: Brookfield Renewable Partners L.P., Canadian Imperial Bank of Commerce (CIBC), and Celestica Inc.

In an interview with BNN Bloomberg on Wednesday, Hardy noted that heading into next year, Canadian consumer conditions are expected to remain relatively stable. He explained that while growth has been driven by population increases, this is likely to taper off due to weak business investment and productivity. However, as borrowing costs decrease, consumers should feel less strain from high interest rates.

TD Cowen also released a report on Wednesday showcasing its "best ideas" in the Canadian market, identifying stocks poised to perform well given the current economic environment.

Hardy emphasized Brookfield Renewable's strong position in the growing demand for clean energy, particularly as cloud computing providers expand their data centers, which require large amounts of power. “Many companies have sustainability goals and are seeking clean energy sources," Hardy explained. "Brookfield Renewable is well-positioned to capitalize on that, especially with its agreement to supply Microsoft’s data centers with power from 2026 to 2030."

For the banking sector, Hardy pointed to CIBC as a preferred stock. “CIBC has demonstrated better-than-average growth in pre-tax, pre-provision earnings, declining credit losses in U.S. real estate, and is well-capitalized, even buying back shares," he said. He added that CIBC, a major player in Canadian mortgages, has so far not encountered significant issues in its mortgage portfolio.

Lastly, Hardy sees potential in Celestica, which is poised to benefit from the massive infrastructure investments cloud computing companies will need to make to support AI development. "Celestica is a key supplier to that sector, providing the networking services and computers needed for the AI race," he said.