9 stocks with double-digit upside, according to one of North America’s top banks

Every quarter, Canadian investment bank BMO Capital Markets publishes a list of its highest-conviction stock ideas across the major sectors.

BMO - short for Bank of Montreal - may not be a household name in Australia, but it’s one of North America’s most respected lenders, wealth managers, and equity research firms.

In this wire, we’ve sifted through BMO’s latest Best of BMO list to surface 10 standout opportunities. The selections cover every major sector, with two picks in Resources given Australians’ natural affinity for commodities.

For the international names, we’ve used their U.S. listings for consistency and accessibility, even though some are based on the TSX.

1. MATERIALS - Rio Tinto (LSE: RIO/ASX: RIO)

Rio Tinto is one of the world’s largest diversified mining companies, producing iron ore, aluminium, copper, bauxite, titanium dioxide and borates, and is ramping up its major Oyu Tolgoi copper mine.

“Rio Tinto is our top pick amongst the diversified miners, offering an attractive mix of near-term cash-generative and future-facing commodities," the bank says.

BMO expects returns of around 11% over the next year, with upside approaching 33% if iron ore prices rise 10%. Downside risks include slowing demand for its key commodities and an escalation of trade tensions.

• 2026 estimated P/E = 9..1x
• 2026 estimated dividend yield = 5.4%

2. Materials - cameco (tsx: cco/NYSE: CCJ)

3. ENERGY - Suncor Energy (TSX: SU/NYSE: SU)

Suncor is Canada’s largest integrated oil and gas company, combining oil-sands production with four refineries across Canada and the U.S.

“We anticipate further upside for the shares if the company can continue to lower costs and improve throughput, which should allow accelerated shareholder returns," the report says.

BMO sees potential returns of ~14% over the next year, with upside toward ~30% if operational improvements continue and oil prices strengthen. But volatile commodity prices may have a negative impact on cash flow and economic returns.

• 2026 estimated P/E = 14.2
• Current yield = 3.8%

4. INDUSTRIALS - GE Vernova (NYSE: GEV)

Spun out of GE in 2024, GE Vernova supplies gas turbines, grid equipment and wind technology, with its installed base generating ~30% of the world’s electricity.

“GEV offers investors unrivalled exposure to rapidly growing global power demand driven by AI, with a step change in margins across gas turbines and grid equipment," BMO says.

BMO forecasts ~19% returns over the next year, with further upside if power-equipment orders and margins exceed expectations. The company is subject to risks including slowing demand, permit delays, quality issues and poor execution.

5. CONSUMER STAPLES: Costco Wholesale (NASDAQ: COST)

Costco operates 914 warehouses globally and remains one of the world’s strongest membership-based retail models. The company's shares have fallen back >20% since early 2025, partially due to slightly weaker renewal rates.

"We expect this could continue for a few more quarters as Costco cycles out lower-renewal rates from COVID-era online sign-ups, but believe this is creating a compelling buying opportunity for this best-in-class retailer/wholesale club," the bank says.

BMO expects Costco shares to rise roughly 29% over the next 12 months, with potential upside of up to ~42% if market-share gains accelerate or a membership-fee increase drives EBIT growth in line with past cycles. Risks include weak demand for its products due to factors including inflation and economic uncertainty.

6. FINANCIALS: Royal Bank of Canada (TSX/NYSE: RY)

7. TECHNOLOGY - Celestica (TSX/NYSE: CLS)

Celestica manufactures AI servers, switches and custom hardware for hyperscalers, including Google, OpenAI and other major cloud providers.

“AI infrastructure spending should remain robust for years, and CLS’s growth durability isn’t adequately priced into the stock," the report says.

BMO expects mid-single-digit returns but sees as much as 25% upside if hyperscaler demand remains strong or CLS wins additional AI hardware programs. BMO notes most of CLS’s revenue stems from its top-ten customers, posing revenue concentration risks.

• 2026 estimated P/E = 39.4x
• Current yield = 0%

8. HEALTHCARE - Disc Medicine (NASDAQ: DISC)

Disc develops treatments for blood disorders focused on heme biosynthesis and iron metabolism, with its lead drug bitopertin nearing its first FDA decision.

“Disc is positioned to receive its first FDA approval for its investigational asset, bitopertin, in EPP/XLP patients. While most investor attention has been fixated on bitopertin’s near-term revenue opportunity, we believe upside from the company’s hepcidin portfolio remains undervalued," BMO says.

Going forward into 2026, the bank adds that it expects Disc to be able to quickly commercialise bitopertin while expanding its hepcidin portfolio with updates for both ‘0974 and ‘3405.

BMO expects returns of ~29% in the base case, with upside approaching 50% if clinical data outperform. Key risks including gaining regulatory approvals, commercial execution and manufacturing.

• 2026 estimated P/E = N/A
• Current yield = 0%

9. REAL ESTATE - Digital Realty Trust (NYSE: DLR)

Digital Realty is one of the world’s largest data-centre operators, serving hyperscale and colocation tenants across the U.S., Europe and Asia.

“DLR is benefiting from elevated leasing levels driven by robust hyperscale demand and record-low industry vacancy rates," the bank says.

BMO expects ~25% returns over the next year, with upside around 40% if pricing, bookings and leasing run ahead of expectations. Risks include slowing AI-related demand, higher interest rates, competition and tenant bankruptcy.

• 2026 estimated P/FFO (price to funds from operations) = 20.2x
• Current yield = 3%

10. UTILITIES - Black Hills (NYSE: BKH)

Black Hills is a regulated U.S. electricity and gas utility serving 1.35 million customers across eight states, with rising data-centre-related demand.

“BKH is on the precipice of a material inflection point in its EPS trajectory, supported by its capital-light Wyoming tariff and a 2.5GW+ data-centre backlog," it says.

BMO expects modest near-term returns (~3%), with a longer-term earnings growth profile that could outperform the broader U.S. utilities sector. BKH's regulated profile exposes the company to numerous risks including business, regulatory, environmental and capital markets risks.

• 2026 estimated P/E = 17x
• 2026 estimated yield = 3.8%