RBC Capital reveals top 3 financial picks: Brookfield, Element Fleet, Fairfax

Published 21/10/2025, 15:06
RBC Capital reveals top 3 financial picks: Brookfield, Element Fleet, Fairfax

Investing.com - RBC Capital analyst Bart Dziarski has identified his top three investment ideas in North American Diversified Financials ahead of the third quarter 2025 earnings season.

Brookfield Corporation tops RBC’s list, with the analyst noting that "current valuation provides an attractive entry point into a leading franchise set to benefit from increasing carried interest realizations and its growing Wealth Solutions business." The firm highlights Brookfield’s controlling position in BAM as a contributor to NAV growth.

Element Fleet ranks as RBC’s premier growth pick, with the analyst expecting "15%+ EPS growth over the near term" and ROE expansion from mid-teens to high-teens. The company is described as entering the "5th stage in its evolution," with increasing capital-light revenue while maintaining counter-cyclical upside.

Fairfax secures the position as RBC’s top value selection, with expectations for continued strong underwriting results in what the analyst characterizes as a "favourable (albeit slowing) pricing environment." RBC notes Fairfax has repositioned its investment portfolio to capitalize on the current interest rate environment.

For Q3/25, RBC’s primary focus areas include Brookfield entities’ fundraising and deployment environment, P&C insurance benefits from a benign CAT loss season, TMX’s Trayport business and potential AI impacts, and Element Fleet’s new customer wins and service revenue outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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