CIBC Sid Mokhtari's January 10 top stock picks outperform TSX

Investors constantly seek reliable insights to navigate the complex world of stock markets, and one name that has emerged prominently in this arena is Sid Mokhtari, chief market technician at CIBC. His ability to consistently outperform market averages has made him a go-to figure for many looking to enhance their portfolios.

Over the past four years, Mokhtari has developed a reputation for delivering impressive returns through his disciplined stock selection process. By focusing on the top 100 companies within the S&P/TSX Composite Index by market capitalization, he has managed to outperform the broader index consistently, even amid fluctuating market conditions. This article delves into his methodology, highlights his latest stock picks for January, and examines what trends might influence the market in the near future.

Sid Mokhtari's Stock Selection Process

Mokhtari employs a technically driven approach to stock selection, which allows him to identify potential outperformers based on historical performance and market trends. His methodology includes several key steps:

• Market analysis: Studying macroeconomic indicators and sector performance.
• Technical analysis: Evaluating stock price movements and patterns.
• Risk assessment: Weighing potential risks against expected returns.
• Diversification: Spreading investments across various sectors to mitigate risk.
• Regular updates: Continuously revising stock picks based on market changes.

By integrating these elements, Mokhtari has crafted a strategy that not only seeks to maximize returns but also to protect investors from potential downturns.

Performance Overview: Outpacing the Market

In December, Mokhtari's selected stocks achieved a return of 1.36%, slightly surpassing the S&P/TSX Composite Index's 1.05% return. This trend is not an anomaly; in 2025, his portfolio boasted an impressive 51.3% increase, compared to the index’s 28.3% return. Historical performance data shows that his selections have consistently outperformed the index:

• 2024: Outperforming by 5.8 percentage points.
• 2023: A margin of 6.3 percentage points.
• 2022: Surpassing the index by 2.7 percentage points.

This consistent performance underscores Mokhtari's expertise and the effectiveness of his stock-picking strategy.

January's Top Stock Picks

For January, Mokhtari has unveiled a fresh roster of ten stock picks spanning six sectors. These selections reflect his commitment to diversification and capturing opportunities across the market. Key highlights include:

• Materials Sector:
  • CCL Industries
  • Ivanhoe Mines
  • Nutrien
• Consumer Discretionary:
  • Dollarama
  • Gildan Activewear
• Financials:
  • Fairfax Financial Holdings
  • Great-West Lifeco
• Consumer Staples:
  • Premium Brands Holdings
• Telecommunications:
  • Quebecor
• Industrials:
  • TFI International

Market Trends for January and Beyond

January typically heralds positive trends for equity markets. Historical data indicates that the S&P/TSX Composite Index has delivered an average return of 1.2% during this month over the past 30 years. However, sector performance can be quite varied:

• Health Care: 6.3% gain
• Technology: 5.2% gain
• Communication Services: 1.4% gain
• Materials: 1.4% gain
• Utilities: 0% return (lagging sector)

Factors Influencing Stock Performance This Year

In a report dated January 2, Mokhtari highlighted several crucial factors that are likely to shape market dynamics in the coming year:

• Cyclical stocks: A potential shift towards cyclical and value stocks may occur as economic conditions stabilize.
• Growth at a reasonable price (GARP): This strategy could gain traction, as investors seek balanced investments with stable earnings.
• Mean-reversion opportunities: There may be chances for low-volatility and quality stocks to experience a positive reversal after lagging behind.
• Market internals: Changes in market internals and sector rotations could significantly influence stock performance.

As such, investors should stay alert to these shifts and trends while considering their investment strategies moving forward.