Earlier on May 29, Invesco’s Brian Levitt appeared on CNBC’s ‘The Exchange’ to discuss how he thinks now is the time to diversify your portfolio into other parts of the world. Levitt stated that while the underlying policy uncertainty persists, the market’s trajectory has been positive. He believes that the market, which bottomed out some time ago, has been looking towards incrementally better policy. He suggested that the worst of the policy is behind us and that things should gradually improve now. He advised investors to be mindful of portfolio valuation and maintain optionality to prepare for adverse events. He cautioned against viewing the situation as a binary one and noted that such a simplistic approach will be challenging given the ongoing news.
Levitt dismissed the notion of an impending recession and cited the strong performance of high-yield bonds this year as inconsistent with a recessionary environment. He expressed comfort that the current economic cycle will continue and acknowledged that when leading indicators are rolling over, a more defensive stance is typically warranted, which would favor quality assets like mega-cap US growth companies. However, he warned that if a valuation adjustment similar to Liberation Da were to occur again, it could be substantial. Therefore, he advised diversification into other global regions and potentially US value stocks to reduce overall portfolio valuation.
That being said, we’re here with a list of the 12 best Canadian stocks with huge upside potential.
A financial analyst on a business call, studying a portfolio of stocks.
Methodology
We used the Finviz stock screener to compile a list of the top Canadian stocks. We then selected 12 stocks that had a high average upside potential of over 25%. The stocks are ranked in ascending order of their average upside potential. We’ve also added the hedge fund sentiment for each stock, which was sourced from Insider Monkey’s database, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Canadian Stocks With Huge Upside Potential
12. Lululemon Athletica Inc. (NASDAQ:LULU)
Number of Hedge Fund Holders: 48
Average Upside Potential as of June 20: 27.49%
Lululemon Athletica Inc. (NASDAQ:LULU) is one of the best Canadian stocks with huge upside potential. On June 11, Lululemon announced an expanded 10-year partnership with Samsara Eco through an off-take agreement for recycled nylon and polyester. The collaboration underscores Lululemon’s commitment to building a circular ecosystem for its products and supports its goal of using more preferred materials by 2030.
The deal could enable Samsara Eco to produce ~20% of the fibers in Lululemon’s portfolio. The announcement builds upon a previous multi-year agreement between Lululemon and Samsara Eco, which was initiated in 2023 and aimed at creating infinitely recycled nylon and polyester. In 2024, Lululemon debuted its first product featuring Samsara Eco’s material. This was a limited-edition packable anorak, which also marked the world’s first enzymatically recycled nylon 6,6 product sample.
The Chief Supply Chain Officer at Lululemon, Ted Dagnese, stated that the company is diversifying by investing in multiple partnerships to develop solutions and reduce its reliance on fossil-fuel-derived resources. Lululemon’s latest impact report indicates progress in integrating preferred materials, with 38% of products procured in 2023 containing over 50% of materials deemed environmentally preferable by the company.
Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes, and retails technical athletic apparel, footwear, and accessories under the lululemon brand internationally.
Samsara Eco is an Australia-based company that specializes in enzymatically recycling nylon 6,6 products.
11. Silvercorp Metals Inc. (NYSE:SVM)
Number of Hedge Fund Holders: 15
Average Upside Potential as of June 20: 33.44%
Silvercorp Metals Inc. (NYSE:SVM) is one of the best Canadian stocks with huge upside potential. On June 12, Silvercorp Metals announced the filing of an updated mineral resource estimate for its Condor gold project in Ecuador. This “Independent Technical Report for the Condor Project, Ecuador,” prepared by SRK Consulting (Canada) Inc., had an effective date of February 28, 2025. The report was filed following a news release on May 12 and is available on the company’s website, SEDAR+, and EDGAR.
The Condor Project is not currently considered a material property for Silvercorp, and the updated estimate was filed voluntarily. The announcement comes amidst a positive period for Silvercorp Metals, with its share price increasing by 14% over the past month. This upward trend is supported by strong financial results reported on May 22, where Silvercorp reported revenue of $72.2 million in Q1 2025, which was a 20% increase from $60 million in Q1 2024.
Despite strong growth, the company’s one-year return has lagged behind the Canadian Metals and Mining industry, which saw a 34.1% return. Analysts are optimistic about Silvercorp’s future and expect annual revenue growth of 26.1% and earnings to reach $122.4 million by May 2028. This outlook is supported by initiatives like the Ying Mine expansion and rising metals prices.
Silvercorp Metals Inc. (NYSE:SVM) acquires, explores, develops, and mines mineral properties in China. It explores for copper, silver, gold, lead, and zinc metals.
Hedge Fund Resource Center