Stock Picks for October 2025

Stock Picks for October 2025

Today is October 22nd, 2025 and it’s time for some new stock picks!

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Market Overview

September was another good month for stocks with averages going up around 4.5%. Speculation in the capital markets remains rampant with Artificial Intelligence (AI) related stocks like NVDIA making all time highs. Valuations for stocks are very high and the general economy excluding AI spending is generally flat. These conditions make it hard for value based investors to find good companies at good prices to invest in but we are still able to do it:

Groupo Financiero Galicia SA (NASDAQ: GGAL)

Not for the faint of heart, my first stock pick is one of the cheapest stocks in the world, trading at about 5x earnings. The company is a financial services conglomerate based in Argentina, a country that historically capital was destroyed through socialism, corruption and theft. Ever since the election of Milei however, investment conditions have started to improve, with government deficit spending being reduced, corruption being reduced, inflation is coming down, rent and other market controls are being eliminated or reduced, all conditions that restore free markets. Free markets offer the best path to prosperity.

Banks offer a levered bet to economic activity so a bet on Argentinian banks is a bet on Argentina and a bet on Milei. A bet on free markets is a no brainer but the political stability of a country like Argentina is not. Hence the low valuation of such a stock. In a relatively stable economy like Canada a bank that generates around 20% return on equity would trade at around 20x earnings, at a 400% higher valuation than this bank.

Alliance Resource Partners LP (NYSE:ARLP)

My second stock pick is a coal company, Alliance Resource Partners, symbol ARLP on the NYSE. It produces and markets coal to US utilities and industrial users. With demand for electricity now rising due to demand from data centres and Artificial Intelligence (AI) companies this is a good time to be in this business.

WIth a median return on equity of around 30% over the last 10 years, this company was nicely profitable before the rise of AI and we expect it will continue to be so in the future. The valuation for is also good as the stock trades at less than 11x forward earnings. Profits are paid out in the form of distributions quarterly and since the company is organized as a limited partnership it produces K1 tax forms for its investors which an complicate things for non-registered investment accounts. We would need to be a bit careful on what type of accounts should own this stock.

International General Insurance Holdings (NASDAQ:IGIC)

My third pick is International General Insurance Holdings, symbol IGIC on the NASDAQ. International General is a smaller insurance company with a market cap of about 1 billion dollars, and it specializes provides commercial insurance coverage for energy, property, construction and engineering, political violence, ports and terminals, marine cargo and general aviation. Organized as a Bermuda corporation, it is headquartered in Amman, Jordan and does its underwriting out of London, England.

The company has been very nicely profitable since  2019 with average return on equity being around 20% yet the stock trades at only 8 times earnings. This is the sort of thing we like, good companies at good prices.

Give Us a Call

As always, if you have questions about whether these stocks fit in your portfolio or if you have any other investment-related questions, give us a call! 604-288-2084

Thank you!

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