Double Your Money? Top 2 Canadian Stocks in a Tariff-Sensitive Market
Tariffs are unwelcome in financial markets and disliked by investors. These duties disrupt trade, alter the investment landscape, and heighten volatility. Fortunately, not all sectors have incurred losses due to tariff chaos. Canada's main stock index advanced nearly 7.2% in the last three months, notwithstanding the U.S.-initiated trade war.
As of June 4, 2025, 8 of the TSX's 11 primary sectors are in positive territory. The materials sector is the top performer year-to-date (+18.3%), while industrials have been steady (+5.4%). Notably, one stock from each sector is among the top Canadian stocks in a tariff-sensitive market.
K92 Mining (TSX:KNT) and Magellan Aerospace (TSX:MAL) have delivered outsized gains thus far this year. Given their astronomical returns, you can double your money by investing in either stock. Their total returns in one year are 110.2%-plus and 110.6%-plus, respectively.
K92 Mining, based in Vancouver, owns the Kainantu Goldmine in Papua New Guinea. The $3.6 billion gold producer aims to become a mid-tier one producer. Given six consecutive years of gold production growth, the goal is highly achievable. But why is this mining stock outperforming in 2025?
Gold stocks, such as K92, serve as proxies for the physical precious metal and safety nets for tariff-weary investors. Second, the high-grade, high-margin gold mine in Papua New Guinea offers significant growth in gold resources. Third, the solid Q1 2025 financial results assure future growth.
In the three months ending March 31, 2025, net earnings and earnings from mine operations soared 2,190.2% and 484.2% respectively to US$70.2 million and US$110.5 million compared to Q1 2024. Total gold production during the quarter reached 45,735 ounces, representing an 87.5% year-over-year increase.
For 2025, management expects gold equivalent production of 160,000 to 185,000 ounces (AuEq), compared to the record 149,515 ounces of AuEq in 2024. KNT is no doubt a compelling gold investment opportunity. If you invest today, the share price is $15.64 (+80.2% year-to-date).
Magellan Aerospace, a $971.4 million integrated aerospace company, provides complex assemblies and systems solutions for the civil aerospace and defence markets. Its customers are aircraft and engine manufacturers as well as space agencies.
Had you invested $7,000 one year ago, your money would be $14,480.40 today. MAL currently trades at $16.88 per share (+68% year-to-date) and pays a modest dividend yield of 1.2%.
According to management, U.S. tariffs have created the potential for a new form of turbulence. Nonetheless, Magellan reported better-than-expected financial results for the start of the year. In Q1 2025, total revenues and net income increased 10.9% and 71.4% year-over-year respectively to $260.9 million and $10.8 million.
If trade tensions persist, tariffs could impact the commercial aircraft manufacturing market. However, the strong demand in the defence market should continue to provide manufacturers with secure order books for the foreseeable future. Moreover, the modernization of armed forces globally is a positive factor.
On April 30, 2025, Magellan signed long-term agreements (LTAs) with Pratt & Whitney (Canada), an RTX business. The LTAs, including a blend of contract extensions to legacy agreements, enhance Magellan's position in the supply chain.
Take your pick between K92 Mining and Magellan Aerospace. The former has a clear path to becoming a mid-tier one gold producer. On the other hand, the latter has the makings of an aerospace industry powerhouse.
The post Double Your Money? Top 2 Canadian Stocks in a Tariff-Sensitive Market appeared first on The Motley Fool Canada.
Before you buy stock in K92 Mining, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and K92 Mining wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.
See the Top Stocks * Returns as of 4/21/25
More reading
Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS]
Market Volatility Toolkit
Best Canadian Stocks to Buy in 2025
Beginner Investors: 4 Top Canadian Stocks to Buy for 2025
5 Years From Now, You'll Probably Wish You Grabbed These Stocks
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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends RTX. The Motley Fool has a disclosure policy.
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