Gold, Grit, and Gigawatts: The Stocks David Burrows Says Are Set to Shine
David Burrows of Barometer Capital Management reveals why Agnico Eagle, Caterpillar, and Cameco are his top plays for year-end growth as markets shift toward cash flow, commodities, and energy resilience.
As global markets navigate the volatile tail end of the year, Barometer Capital Management’s Chairman and Chief Investment Officer, David Burrows, believes investors should look beyond the noise and focus on leadership that endures. In his latest appearance on BNN Bloomberg, Burrows outlines his conviction in North American large caps and unveils his top stock picks for October 2025: Agnico Eagle Mines Ltd. (TSX:AEM), Caterpillar Inc. (NYSE:CAT), and Cameco Corp. (TSX:CCO).
A Market in Sorting Mode
Burrows describes today’s equity landscape as one of resilience and selectivity. Global markets have weathered what is typically the most challenging stretch of the year, emerging with strong internals and leadership trends that appear set to carry into year-end. “This is a healthy market,” he explains, noting that low correlations between sectors signal a market that’s sorting winners from laggards rather than being driven by a single macro theme.
This decoupling of performance across industries gives active managers a chance to shine. Burrows highlights how developed and emerging markets are outperforming U.S. equities—a shift from the past 18 months—and that Canadian stocks are re-entering the spotlight. Barometer’s strategy remains fully invested, emphasizing dividend growth and cash-generating equities in financials, industrials, materials, and cyclical technology, particularly semiconductors.
Inflation, Debt, and the Case for Commodities
While many asset managers remain cautious about inflation, Burrows believes the key is positioning portfolios in a way that turns inflation from a threat into a tailwind. He argues that high fiscal debt levels globally will continue to challenge traditional bond markets, leaving commodities as a more effective hedge. “We prefer commodities exposure over bonds,” he states, pointing to the strength in energy, metals, and materials as part of Barometer’s defensive growth approach.
Agnico Eagle Mines (TSX:AEM) – Gold’s Cash Flow King
For Burrows, Agnico Eagle Mines Ltd. (TSX:AEM) represents stability wrapped in opportunity. The gold producer’s portfolio spans multiple mines in politically secure jurisdictions, offering investors a blend of safety and scale. “What stands out about Agnico is its cash flow growth,” Burrows says, emphasizing the company’s focus on shareholder returns.
Production levels are steady year-over-year, meaning most of the earnings growth is coming directly from record-high gold prices—averaging US$3,460 per ounce this quarter, up 39 percent from last year. Analysts expect free cash flow of about US$925 million for the quarter, marking a 50 percent surge year-over-year.
With net cash now hovering around US$1 billion, Agnico is entering a phase where elevated shareholder returns—including potential dividend hikes—are likely. The combination of high gold prices and disciplined cost management positions the miner as one of the sector’s most reliable performers. “Agnico has always been the benchmark for operational excellence,” Burrows notes, “and it’s proving again why it deserves that reputation.”
Caterpillar (NYSE:CAT) – The Power Behind the Power
Burrows’ second pick, Caterpillar Inc. (NYSE:CAT), stands at the crossroads of industrial growth and the digital revolution. While the company is widely recognized for its heavy machinery, Burrows draws attention to a lesser-known division: Solar Turbines. Despite the misleading name, this segment builds natural gas turbine generators—compact yet powerful systems that are increasingly critical in meeting the surging energy demands of AI and data centers.
“Caterpillar’s Solar Turbines division is their sleeping giant,” Burrows explains. Historically a small contributor to the company’s overall business, it has now become strategically vital. With global giants like Meta Platforms (NASDAQ:META) and Elon Musk’s xAI reportedly signing deals for power generation, the company’s role in the AI infrastructure boom is expanding.
Currently, about 5 percent of Caterpillar’s revenue comes from power generation, including this division. However, its 25 percent compound annual growth rate suggests much larger potential. Investors are now watching for Caterpillar’s November 4 investor day, where the company is expected to unveil detailed financials for this segment. “This business line could redefine how investors value CAT,” Burrows says. “It’s the right story at the right time—industrial meets digital.”
Cameco (TSX:CCO) – The Nuclear Renaissance
Few sectors are as poised for transformation as nuclear energy, and Cameco Corp. (TSX:CCO) is at its epicenter. Burrows’ third top pick taps into a powerful convergence of energy security, decarbonization, and technological demand. “Cameco is a pure play on the nuclear revival,” he declares, citing how AI’s power consumption and the global push to triple nuclear capacity by 2050 have reignited uranium demand.
Cameco’s strength lies in its vertical integration—from uranium mining to reactor services through its joint venture with Westinghouse. This model not only insulates the company from price volatility but also provides diversified revenue streams across the nuclear fuel cycle.
Burrows points to tightening supply, dwindling utility inventories, and accelerating contracting cycles as immediate catalysts. “The uranium market is structurally undersupplied,” he says. “Utilities are moving away from Russian fuel, especially in Europe, and Cameco is perfectly positioned to fill that gap.”
Analysts estimate that new production will require uranium prices of US$125 to US$150 per pound to be viable—levels that would deliver a massive earnings windfall for Cameco, which controls roughly 22 percent of global production. In Burrows’ view, “Cameco is not just a stock; it’s a strategic asset for the Western world’s energy independence.”
Positioning for the Next Leg Higher
As markets head into the final quarter of 2025, Burrows sees the conditions aligning for a strong finish. Equity breadth is improving, leadership is well-defined, and capital continues to flow into cyclical and value-oriented sectors. The environment favors companies that can generate free cash flow, manage debt, and deliver consistent shareholder returns—qualities shared by all three of his picks.
His overarching thesis remains clear: stay fully invested, diversify through strong cash-generating names, and maintain commodity exposure as an inflation hedge. “The sorting hat is at work,” Burrows concludes. “This is when disciplined investors get rewarded.”
Conclusion
David Burrows’ latest top picks reflect more than just short-term trades—they represent a broader view of how investors should navigate an evolving macro landscape. Agnico Eagle (TSX:AEM) stands tall as a gold powerhouse with rising free cash flow, Caterpillar (NYSE:CAT) is quietly powering the AI revolution, and Cameco (TSX:CCO) anchors the global shift toward nuclear energy.
In a world where markets are finally differentiating between winners and laggards, Burrows’ focus on leadership, resilience, and growth through change captures the essence of smart investing heading into 2026.