Several Canadian stocks trade at a bargain despite a rising market due to falling inflation and interest rates. Ballard Power Systems (TSX:BLDP) and TELUS Digital (TSX:TIXT) are tempting options for their depressed prices, but there are valid reasons to avoid them.

However, if I'm investing before or starting in 2025, I'd buy Suncor Energy (TSX:SU) without reluctance. Warren Buffet's top Canadian holding for years until Q1 2021 is a rock-solid investment choice.

Lost Glory

The TSX30 List, the flagship program for Canada's 30 top-performing stocks, first emerged in 2019. Ballard Power Systems has been in the prestigious list for three consecutive years since the launch. The industrial stock ranked 12th, 2nd, and 4th in 2019, 2020, and 2021, respectively.

BLDP's three-year performance (dividend-adjusted share price) in its last appearance on the list was plus 495%. Today, Ballard is hardly a shadow of its high-growth status. At $1.79 per share, the year-to-date loss is minus 63.5%. Is recovery coming soon to regain lost glory?

The $385 million fuel cell company develops and manufactures proton exchange membrane (PEM) fuel cell products. Unfortunately, the near-term outlook looks bleak because of the slow development of the hydrogen fuel cell market. The challenging macroeconomic and geopolitical risks add to the business uncertainty.

In Q3 2024 (three months ending September 30, 2024), revenue declined 45% year-over-year to US$14.8 million, while net loss widened 489% to US$204.5 million compared to Q3 2023. Ballard's vital role in decarbonization will come but not soon.

Intense competition

Technology is the TSX's top-performing sector (+30.9%) thus far in 2024, but TIXT (-52.5%) lags its peers. TELUS International changed its name to TELUS Digital in June 2024, although the rebranding did not help. The tech stock trades at $5.41 per share or 65.2% lower than its 52-week high of $15.56.

In Q3 2024, revenue declined 0.8% year-over-year to $658 million and net loss reached $32 million compared to the $9 million net income in Q3 2023. The $1.5 billion company delivers innovative solutions, including generative AI, to enhance the global and disruptive brands' customer experience (CX).

Management said the focus on fundamentals should support the return to growth but admits the intense competition from companies that offer services similar to TELUS Digital.

Oil bellwether

Suncor Energy and its stock have recovered remarkably since incurring substantial losses in 2020 due to the oil price war and low demand during the global pandemic. Market analysts recommend a buy rating for the oil bellwether. At $53.16 per share, current investors are up 29.3% year-to-date and partake in the 4.3% dividend yield. The quarterly payout should be safe, given the low 37% payout ratio.

The $48.5 billion integrated energy company commits to returning almost 100% of excess funds to shareholders via share buybacks. Suncor also targets a 3% to 5% annual dividend growth guidance. In Q3 2024, net earnings climbed 30.8% year-over-year to $2 billion. Because of the solid financial results, the Board approved a 5% dividend hike.

Discern before investing

Investors should be discerning with their investment choices. Suncor Energy is doing well because the circumstances or market conditions are generally favourable. Ballard Power Systems and TELUS Digital face serious challenges, while the oil bellwether is a must-buy.