The TSX Index was up 6.23% in the month of May, up 6.72% YTD and 19.56% over the past year. Canadian GDP was up 0.5% in the fourth quarter of 2025 and 2.3% for the full year; in the USA, GDP was down 0.2% for the quarter and 2.1% for the full year. Canadian inflation rate was 1.70% annually in May 2025 and the US annual rate was 2.40% in May 2025. With this background, the following Table presents the highest and lowest performers for the month of May 2025.
Top Performers
The best performer of May was Aritzia Inc (ATZ) whose stock price was up 37.5% on the month, up 24.7% year-to-date, and up 105.7% over the past year.
ATZ is an apparel company that focuses on building a brand and lifestyle. In early May, it reported strong earnings, with both a top and bottom-line beat, and while it has some tariff risk, it has so far managed the uncertainty well. Management continues to demonstrate execution through disciplined cost control as its adjusted EBITDA expanded meaningfully to 18.0% from 10.6% last year.
Fashion is a tough industry to operate in due to the ‘fad-driven’ and competitive nature of the industry. But, ATZ has strategically positioned itself as an “everyday luxury” brand, and the management is highly aware that the long-term goal is to build a sustainable brand, not just a trend. It has been reporting solid operating results in the most recent quarters, and while it does have some tariff headwinds, we think its disciplined cost and inventory control are positive catalysts for its future.
The second best performer of May was BRP Inc (DOO) whose stock price was up 30.7% on the month, down 16.6% year-to-date, and down 32.7% over the past year.
DOO reported a strong quarter in the month of May, with a 17% beat on earnings a 5% beat on sales. A change in management should be good for the company, and consensus calls for earnings growth in 2025, and 2026 (20%+). There are some offsetting fears, such as economic slowdowns, tariff fears, and inflation uncertainty, but its shift in price momentum is positive.
We like its recent momentum shift, but we remain largely cautious on the name due to its execution missteps in the past few years.
The third best performer of May was Magellan Aerospace Corp (MAL) whose stock price was up 24.0% on the month, up 67.5% year-to-date, and up 108.3% over the past year.
MAL is a small ($1.1 billion market cap) aerospace name that pays a decent yield of 0.5%. It has a diversified customer base and long-term contracts, serving customers like Boeing, Airbus, and Lockheed Martin. It reported strong earnings in early May, with sales climbing above 10%, cash flows grew substantially, and it received some analyst upgrades. We think MAL looks attractive here.
Bottom Performers
The third worst performer of May was goeasy Ltd (GSY) whose stock price was down 4.1% on the month, down 10.5% year-to-date, and down 17.1% over the past year.
GSY has seen its growth rate slow recently, and in its recent results it missed both sales and earnings estimates, leading to a decline in its share price. It has been seeing pressure on its margins as rates decline, and investors had some concerns over its $400 million debt raise in April. While we expect its growth to be constrained in the near-term, we continue to like the name over the long-term and it trades at attractive valuations of 8.1X forward earnings.
The second worst performer of May was EQB Inc (EQB) whose stock price was down 4.1% on the month, down 7.7% year-to-date, and up 2.1% over the past year.
EQB had a tough month, as it reported weak earnings results, causing shares to drop 7% in after-hours trading. Its credit provisions more than doubled quarter-over-quarter, reflecting a more uncertain macro environment, particularly in the housing market. These credit provisions weighed on net income and highlighted growing credit risk. It saw a few analyst price target cuts following its earnings, and shares have been largely flat since. We continue to like the name, but we think its next earnings can be a potential catalyst for the company.
The worst performer of May was Real Matters Inc (REAL) whose stock price was down 5.7% on the month, down 13.3% year-to-date, and down 1.0% over the past year.
REAL has seen pressure on the stock for a few years now, and it continues to see muted growth year-after-year. In its most recent earnings, sales dropped more than 10% year-over-year, and it reported a net loss in the quarter. Its drop in May was driven by structural weakness in its core mortgage appraisal business, mixed financials, and fundamentals that have been weak for some time now.
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Twitter: @5iChris
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