The TSX Index was down -0.55% in the month of February, up 2.69% YTD and 17.82% over the past year. Canadian GDP was up 0.3% in the fourth quarter of 2024 and 1.50% for the full year; in the USA the GDP was up 2.5% for the fourth quarter and 2.50% for the full year. Canadian inflation rate was 1.80% annually in February 2025 and the US annual rate was 3.00% in February 2025. With this background, the following Table presents the highest and lowest performers for the month of February 2025.
The best performer of February was Northland Power Inc. (NPI) whose stock price was up 17% on the month, up 11% year-to-date, and down 13% over the past year.
NPI is a global developer specializing in developing offshore wind and onshore renewable energy projects. Its price declined into the early part of February, but rose into its earnings later in the month. Its EPS beat by a strong margin, but it was just shy of its sales expectations.
In its latest earnings report, offshore wind was fairly weak, ubt net income swung to a profit, from a loss last year. Guidance was maintained, and its growth plan into 2027 was affirmed. We feel the stock is cheap, with a good dividend, and we would be comfortable holding NPI. Its growth in 2025 might be muted, but with accelerated growth predicted in 2026.
The second-best performer of February was TMX Group (X) whose stock price was up 14% on the month, up 16% year-to-date, and 45% over the past year.
X operates as an exchange facilitator and clearinghouse for capital markets in North America. It provides essential services to the Canadian capital and global commodity markets. Strong earnings results in the early part of February sent the stock flying higher as sales, earnings, and EBITDA all beat estimates.
Its dividend was raised 5.2%, a few brokers raised their price targets on the name, revenues rose around 30% year-over-year, and earnings nearly doubled. The company noted that the IPO market is starting to look better, and it was overall boosted by the strong capital markets.
The third-best performer of February was StorageVault Canada (SVI) whose stock price was up 11% on the month, up 3% year-to-date, and down 25% over the past year.
SVI is one of the largest storage providers in Canada, the company owns, manages and rents 249 storage locations across Canada, of which SVI owns 218 locations and 5,015 portable storage units. The remaining 31 stores are owned by third parties for a management fee.
SVI rose in February as a result of its strong earnings results, where it reported better-than-expected sales, and its net loss shrunk in the quarter. It saw occupancy trends improve, which was weak earlier in the year, and a few brokers increased their ratings for the company. The name was also bolstered by strong expectations for increased real estate activity in the 2025 spring market.
The third-worst performer of the month was TFI International (TFII) whose stock price was down 32% on the month, down 15% year-to-date, and down 35% over the past year.
TFII is a diverse transportation operator. It has a successful track record of acquiring companies and integrating them into its decentralized network of operating segments. The name declined sharply in February following weak earnings results. The company had some issues but mostly attributed them to the sector, calling it a ‘freight recession’. Business is not good, and it’s not isolated to just TFII. Tariffs add uncertainty, and TFII noted it will be a tough year.
It is a high-quality company, and it is not the company’s first downturn. Management noted M&A opportunities and we think there are some levers to pull over the long-term. We think TFII might have some near-term headwinds, but long-term it has been a solid operator.
The second worst performer of February was Propel Holdings (PRL) whose stock price was down 25% on the month, down 21% year-to-date, and up 62% over the past year.
PRL fell sharply in February mostly amid the broader market selloff and fears around a trade war. We view the selloff on PRL as mostly being profit taking on what was a strong run for the name.
It is a high-growth name that trades at a 7X forward earnings multiple, and most of its business comes from the US. We feel that if it can meet forward growth expectations, that it looks fairly attractive at these levels.
Galaxy Digital Holdings (GLXY)
The worst performer of February was Galaxy Digital Holdings (GLXY) whose stock price was down 24% on the month, down 14% year-to-date, and up 54% over the past year.
Amid the broader market selloff in February, the crypto market faced downward pressure, and this caused a selloff in GLXY. It operates across a few main segments: global markets (trading, lending, derivatives), asset management (venture investing, passive ETFs, etc.), digital infrastructure (data centres for blockchain and AI).
If the broader markets rebound and recover, we feel that the crypto markets have an opportunity to recover as well, which could bode well for GLXY. Although, if we see further downside, particularly in the digital assets space, GLXY’s businesses could come under further pressure.
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