Lyle Stein’s Strategy for 2025: Top Stocks to Watch
Navigating Market Volatility: Lyle Stein’s Top Picks for Growth and Stability
Editorial Team (ET)May 21, 2025
Lyle Stein, president of Forvest Global Wealth Management, has a sharp eye for navigating volatile markets. As inflation fears linger and economic landscapes shift, he remains focused on defensive plays, cash-generating assets, and companies poised for long-term growth. His latest top picks—Cameco, AltaGas, and Generac—reflect a strategy designed to thrive in an unpredictable environment.
Market Outlook: A Year of Volatility and Strategic Positioning
The financial world has found some comfort in declining inflation, but Stein isn’t entirely convinced that central banks have everything under control. He warns that the widely accepted two percent inflation target isn’t a hard stop and could easily slip into deflation. Governments, already burdened with debt, may struggle to maintain economic momentum through aggressive monetary policy.
In response, Stein is avoiding long bonds and focusing on short-term fixed-income investments. He remains particularly bullish on natural gas and other hard asset plays, which provide security in turbulent times. With high market expectations at risk of a major reset, he believes diversification and cash-flow-focused investments will be crucial in 2025.
Cameco: A Dominant Force in the Nuclear Revival
Cameco has been a long-time leader in the uranium market, and with nuclear energy making a strong comeback, the company is in a prime position to benefit. Recent market weakness following the DeepSeek announcement has created what Stein sees as a golden buying opportunity.
Uranium contract prices have climbed to $79 per pound, surpassing spot prices at $71, showing that long-term demand remains strong. While uranium prices have dipped from their $100 peak, Stein argues that this decline is already factored into Cameco’s stock price. He believes that the long-term fundamentals of nuclear energy will continue to drive the company’s growth.
Beyond uranium production, Cameco’s 49 percent stake in Westinghouse, alongside Brookfield, adds another layer of value. Westinghouse remains a dominant force in reactor construction, particularly in Western markets, and is projected to deliver EBITDA growth of six to ten percent over the next five years.
Cameco’s financial health also stands out. With its debt burden shrinking rapidly and management signaling dividend growth, the company presents a compelling case for investors looking to capitalize on the nuclear renaissance.
AltaGas: A Unique Energy Play with Global Reach
AltaGas is not your typical utility company. It operates a diverse set of midstream and utility assets that position it for long-term success in both North America and global markets. Stein sees AltaGas as a standout investment thanks to its ability to generate strong cash flows while maintaining flexibility in an evolving energy landscape.
The company’s LPG export business in Canada provides critical supply to Asian markets, ensuring it remains a key player in the international energy trade. Meanwhile, its U.S. operations, particularly Washington Gas Light, serve the rapidly growing data-center hub in Loudon, Virginia. As demand for reliable power sources surges, natural gas remains an essential backup fuel, further solidifying AltaGas’s importance.
Unlike many stocks affected by the recent DeepSeek-driven sell-off, AltaGas has remained steady. Stein attributes this resilience to the company’s valuable infrastructure assets, strong balance sheet, and growing dividend yield. He sees AltaGas as an investment that offers both stability and upside potential, a rare combination in today’s unpredictable market.
Generac: Powering the Future Amid Grid Instability
Generac has built its reputation as the leader in the North American backup generator market. As power grid reliability becomes an increasing concern, the company stands to gain significantly from rising demand for home standby generators. Stein believes that Generac is just scratching the surface of its true market potential.
The numbers tell a compelling story. Home standby generator penetration currently sits at just six percent, meaning the market remains largely untapped. A one percent increase in adoption translates to an additional $3.5 billion in sales—an astonishing growth factor for a company already generating $4 billion in total revenue.
But Generac is not just about backup power. It is at the forefront of bringing advanced energy technology into homes, providing solutions that make energy usage more efficient and reliable. Stein sees Generac as an essential company in an era where power outages are becoming more frequent and consumers are seeking ways to secure their energy needs.
With above-market growth and a valuation that remains attractive relative to its potential, Generac is one of Stein’s top picks for investors looking to capitalize on the changing energy landscape.
Final Thoughts: A Strategy Built for the Future
Stein’s investment strategy is rooted in resilience, stability, and long-term growth. Cameco is a leader in the nuclear sector, benefiting from the shift toward clean energy and energy security. AltaGas offers a unique combination of global exposure and financial strength, making it an attractive play in the evolving energy market. Generac is positioned to benefit from increasing power grid instability, driving demand for its products and technological solutions.
As market volatility continues to test investors, Stein’s picks provide a roadmap for navigating the uncertainty ahead. By focusing on companies with strong fundamentals, cash flow generation, and strategic positioning, he offers a compelling case for where investors should be looking in 2025.
