Brianne Gardner’s Top Picks for July 23, 2025

Brianne Gardner, Senior Wealth Manager, Velocity Investment Partners, Raymond James

Focus: Canadian and U.S. large caps

Top picks: Abbott Labs, Chipotle Mexican Grill, Motorola Solutions

MARKET OUTLOOK:

Financial markets have stayed remarkably resilient this summer, with the S&P 500 hitting fresh highs above 6,300. A powerful mix of retail buying, strong corporate earnings, and optimism around AI continues to push momentum forward. Tech remains the engine, but there’s growing debate over stretched valuations as the index now trades at 22 times forward earnings, and the equity risk premium has narrowed. Still, with margins near record levels and earnings expected to grow around nine per cent this year, there’s room for cautious optimism. The big question now is whether upcoming earnings can justify these levels, especially with Treasury yields creeping higher again.

Meanwhile, the TSX has quietly delivered an impressive run of its own, now sitting near 27,000, and even outpacing the S&P 500 so far in 2025. Strength in energy, materials, and Canadian financials, combined with expectations for lower interest rates, has given the index a fresh tailwind. International flows and a rebound in mergers and acquisitions (M&A) have also boosted sentiment. But it’s not all smooth sailing. Domestic growth is under pressure, unemployment is ticking higher, and inflation hasn’t fully cooled all of which could cap the upside from here.

In short, both markets are holding up well, but for different reasons. The S&P is riding high on tech and global enthusiasm, while the TSX is climbing on commodity strength and rate relief. With earnings and central bank decisions around the corner, it’s a good time to stay selective.

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TOP PICKS:

Abbott Labs (ABT NYSE)

Abbott Laboratories remains a global healthcare leader, with more than 60 per cent of its revenue coming from outside the U.S. making it one of the most internationally balanced names in the sector.

The company operates across four key segments: diagnostics, medical devices, nutrition, and branded generics. Right now, the clear growth engine is medical devices. Abbott has delivered 10 straight quarters of double-digit growth in this division, driven by strong momentum in heart failure, electrophysiology, and diabetes technologies. This consistent performance underscores the strength and innovation within their medical technology portfolio. On the flip side, the diagnostics division is under pressure. As expected, COVID-19 testing revenues have dropped sharply, creating tough year-over-year comparisons.

Meanwhile, policy and procurement changes in China have weighed on testing volumes. Abbott is actively repositioning. The company is leaning into its core diagnostics platforms like Alinity, while expanding molecular and rapid testing in non-COVID-19 areas to offset recent headwinds.

Despite near-term challenges, Abbott’s fundamentals remain strong. Margins are holding steady, and the company reaffirmed its full-year earnings guidance. However, the stock has recently pulled back, presenting what we believe is an opportunity for long-term investors. Abbott still commands a premium valuation, but it’s backed by stronger returns on invested capital and a solid track record. With a globally diversified business and powerful growth in devices, Abbott continues to be a name to watch in healthcare.

Chipotle Mexican Grill (CMG NYSE)

Chipotle continues to stand out in the restaurant sector by successfully combining premium branding with fast-casual convenience. It’s menu and values resonate strongly with younger consumers who prioritize quality, transparency, and sustainability.

Same-store sales are projected to grow six to seven per cent this year, with most of that growth coming from increased foot traffic, a strong signal that Chipotle still has pricing power without losing customer loyalty. Looking ahead, expansion is a major driver. Management plans to open 300 new locations in 2025, the majority featuring Chipotlanes, drive-thru digital order pickup lanes that improve margins and shorten payback periods. These formats are helping Chipotle scale more efficiently than traditional models.

Operationally, Chipotle is investing heavily in automation. Technologies like smart grills and digital makelines are boosting productivity, improving order accuracy, and helping control labor costs, all contributing to stronger throughput and margin expansion. While the stock isn’t cheap, the premium valuation is supported by a stellar track record of execution, a clean balance sheet, and a long runway for growth both in North America and internationally.

Chipotle has beaten earnings estimates for nine consecutive quarters, and it reports again after the close today. Another beat is widely expected as the company continues to outperform in a challenging consumer environment. With strong brand equity, operational efficiency, and strategic expansion, Chipotle remains one of the top names in the restaurant space.

Motorola Solutions (MSI NYSE)

Motorola Solutions may be best known for its iconic flip phones, but today it’s a leader in public safety technology, focused on keeping cities, emergency services, and critical infrastructure connected and secure.

Roughly two-thirds of its revenue comes from hardware like radios, video surveillance systems, and command center equipment used by police, fire departments, and municipalities. The other third? That’s where the real margin story is: high-value software and cloud-based services. This software and services segment is built around long-term, sticky contracts, providing reliable recurring revenue, strong cash flow, and margin stability. It’s a business model we like, especially in uncertain markets.

Motorola is also expanding strategically. The recent acquisition of Silvus Technologies brings advanced wireless communications, a key enabler for defense, drone networks, and autonomous systems. This opens doors to high-growth, high-demand sectors.

On the financial front, Motorola is delivering. The company beat expectations in first quarter, raised full-year guidance, and now carries a US$14 billion backlog, impressive for a business with $11 billion in annual revenue. Margins are expanding thanks to a favorable product mix and disciplined cost control. Despite some geopolitical and tariff-related noise, earnings growth looks steady.

Motorola is a rare blend: a defensive tech name with real-world utility, reliable cash flow, and a growing software backbone. In today’s market, Motorola stands out for its mission-critical solutions, strategic growth moves, and consistent execution.

PAST PICKS: JULY 17, 2024

VISA (V NYSE)

Then: US$272.70

Now: US$352.56

Return: 29%

Total Return: 30%

UNITEDHEALTH GROUP (UNH NYSE)

Then: US$573.28

Now: US$285.44

Return: -50%

Total Return: -49%

LULULEMON (LULU NASD)

Then: US$292.68

Now: US$224.83

Return: -23%

Total Return: -23%

Total Return Average: -14%