Betting on Canadian Growth: Jesse Gamble’s Top Stock Picks for January 2025
How Jesse Gamble’s Top Stock Picks Signal a Bullish Future for Small-Cap Investors
Jesse Gamble, senior vice president and portfolio manager at Donville Kent Asset Management, remains optimistic about Canadian growth stocks despite ongoing market volatility. According to Gamble, while stocks are no longer at their bargain prices from last year, there are still attractive investment opportunities, particularly in the small- and mid-cap space.
The broader economic picture presents a balancing act—on one hand, declining interest rates and strong secular growth sectors are fueling optimism. On the other, political uncertainties and shifting trade policies continue to keep markets on edge. However, Gamble believes that investors must focus on fundamentals, as earnings growth will be the primary driver of stock performance moving forward.
One major factor shaping the market is the divergence between Canadian and U.S. equities. Despite the discount at which Canadian stocks trade relative to their American counterparts, Gamble sees this as an opportunity rather than a disadvantage. With U.S. small-business confidence reaching a three-and-a-half-year high and capital flowing back into the markets, he believes small caps are set to experience a multi-year growth cycle.
Top Stock Picks: Betting on Small-Cap Growth
Gamble has selected three stocks that he believes are poised for strong performance in the coming years: Zedcor Inc. (ZDC CVE), Enterprise Group (E TSX), and Cipher Pharmaceuticals (CPH TSX). Each company represents a different sector but shares a common theme—strong growth potential backed by solid fundamentals.
Zedcor Inc. (ZDC CVE): A High-Growth Security Play
Zedcor Inc. has established itself as a dominant player in the mobile surveillance and security industry. The company’s proprietary security towers, backed by in-house monitoring, have given it a strong competitive edge. With an internal rate of return (IRR) exceeding 40%, Zedcor’s business model is built for scalability.
The company currently operates 1,300 towers, but demand projections indicate potential expansion to over 12,000 towers in the near future. As businesses and government agencies increase their reliance on surveillance technology, Zedcor is positioned to capitalize on this growing demand.
Enterprise Group (E TSX): The Energy Infrastructure Leader
Enterprise Group has been a mainstay in the energy sector for years, but it is the company’s Evolution Power Products division, launched in 2022, that is driving its next phase of growth. The division focuses on natural gas turbine technology, enabling companies to tap into their own natural gas supplies. This innovation drastically cuts diesel consumption, lowers operational costs, and reduces environmental impact.
With Canada on the cusp of a natural gas transformation—thanks to new pipelines allowing exports to Asia and an increasing demand for off-grid data center power—Enterprise Group is positioned as a key player in this evolving landscape.
Cipher Pharmaceuticals (CPH TSX): A Pharma Comeback Story
Cipher Pharmaceuticals has undergone a major transformation, fueled by new leadership and strategic acquisitions. The return of its CEO—who now owns over 40% of the company’s stock—has injected renewed confidence into the business.
The company’s acquisition of Natroba in 2024 provided Cipher with a U.S. salesforce and an expanded portfolio of dermatology and specialty pharmaceutical products. With strong profitability and a management team committed to smart capital allocation, Cipher is well-positioned for long-term growth in the pharmaceutical sector.
Conclusion: Navigating the Opportunities Ahead
Jesse Gamble’s top picks—Zedcor, Enterprise Group, and Cipher Pharmaceuticals—each represent a strong investment thesis centered around innovation, efficiency, and strategic expansion. While market volatility remains a reality, Gamble’s insights highlight the importance of focusing on long-term growth trends and value opportunities.
For investors looking to capitalize on the small- and mid-cap resurgence, these three stocks offer compelling potential as the market enters a new cycle of growth.





