We recently compiled a list of the 10 Best Performing Canadian Stocks in 2025.In this article, we are going to take a look at where Enbridge Inc. (NYSE:ENB) stands against the other Canadian stocks.
According to Deloitte's January 2025 report, the Bank of Canada's decision to shift monetary policy from neutral to slightly stimulative (2.25%) by the middle of the year would assist the Canadian economy grow faster in 2025. Inflation is also predicted to continue close to the 2% target in the coming year, improving the outlook. However, the main concern for 2025 is if and when business confidence will recover. Companies may remain isolated in 2025 due to uncertainties surrounding the newly elected Trump Administration's tax, regulation, and trade policies.
Canada remains the United States' second-biggest commercial partner and largest export market. In the first three quarters of 2024, around C$800 billion ($600 billion) in goods passed the Canada-US border. Including trade in services raises the totals to C$910 billion ($683 billion). That equates to C$3.6 billion in total import and export movements every day. In that vein, additional tariffs are not something the Canadian economy wants to contend with. That said, U.S. President Donald Trump's threat to levy 25% import duties on all Canadian goods and 10% on energy was put on hold for 30 days earlier this month after Canada implemented additional border security measures. On February 9, however, Trump said that he will impose fresh 25% tariffs on all steel and aluminum imports into the United States, in addition to current metals charges, in another significant escalation of his trade policy reform. However, in an exclusive TV interview, Canadian Trade Minister Mary Ng indicated that her country was prepared to retaliate should unfair tariffs be imposed:
"Should Canada get tariffs that are punishing, tariffs that will hurt our economy, everything will be on the table."
As the fear of a trade war rises, Canadian investors are taking advantage of a weaker currency and anticipated volatility, seeking refuge in gold and stocks of companies that manufacture commodities with few, if any, substitutes, such as uranium. In addition, industries such as financial, telecom, real estate, energy, and commodities, which make up about two-thirds of Canada's primary stock market index, the S&P/TSX Composite, are likely to benefit from exemptions or avoid the immediate implications of tariffs. However, if the Canadian economy enters a recession, analysts warn that salaries may fall. Despite the tariffs, the TSX has held close to its January record high, thanks primarily to metals-related shares and considerable increases in technology companies.
Nonetheless, the Canadian stock market is in an interesting space for now. With that in mind, we will take a look at some of the best performing Canadian stocks this year.
Our Methodology
To come up with our list of the best-performing Canadian stocks in 2025, we reviewed several Canadian stocks trading on the U.S. market and sorted them by their 1-year performance as of February 14, in ascending order. Additionally, we included hedge fund sentiment on each stock to provide further insight into each company’s outlook.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is Enbridge Inc. (ENB) the Best Infrastructure Stock to Buy According to Hedge Funds?
A close-up of renewable energy turbines capturing the power of a windy sky.
Enbridge Inc. (NYSE:ENB) is a Canadian multinational pipeline and energy company that provides energy infrastructure across North America. The company transports and distributes oil and natural gas, develops renewable energy, and offers energy marketing solutions.
On February 14, Enbridge Inc. (NYSE:ENB) reported fourth-quarter earnings that exceeded analyst projections and maintained its financial prediction for 2025. The Canadian energy infrastructure company announced adjusted earnings per share of C$0.75, above the average estimate of C$0.74. In addition, Enbridge's adjusted earnings for the full fiscal year 2024 were C$6.0 billion, or C$2.80 per share, up from C$5.7 billion in 2023.
Earlier in December, RBC Capital raised its price target for Enbridge Inc. (NYSE:ENB) to $63 from $59, while keeping an Outperform rating. RBC Capital's adjustment is based on a bullish opinion of Enbridge's 2025 forecast, with the firm observing that the consensus expectations were at the low end of Enbridge's expected EBITDA range, which is now $10.8 billion. Furthermore, the adjustment was based on RBC Capital's cautious expectations about Mainline volumes and the USD/CAD exchange rate.
Overall ENB ranks 8th on our list of the best Canadian stocks to buy. While we acknowledge the potential of ENB as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ENB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
