2025 is right around the corner, and I'm using the remaining months of the year to re-evaluate my portfolio. With a new year comes a new beginning, and sometimes such moments are good ones to give one's portfolio a fresh look. Although I'm fairly content with the investments I have in my portfolio now, I have a few that I plan on selling and replacing with other options. In this article, I will explore three stocks that I might buy in 2025.

Air Canada

Air Canada (TSX:AC) is a stock that I've had on my radar for a while now but have never pulled the trigger on. It was over a year ago that I noticed the stock was dirt-cheap, trading at around three times earnings. The stock has made some gains since that time, but it remains quite cheap, trading at 4.3 times earnings and 0.31 times sales. The price-to-book ratio is higher at 5.9, but with Air Canada rapidly repaying its debt, that ratio should improve over time.

Why is Air Canada stock so cheap?

On the surface it appears odd for it to be such a deep value name, as "household name" companies rarely are so cheap. In Air Canada's case, the cheapness is largely due to the company having faced many issues over the last five years. In 2020, the company was forced to shut down most of its international routes due to the COVID-19 pandemic, while also seeing a decline in domestic passengers due to 14-day quarantines in many provinces. Then in 2022, the company got hit with high oil prices, which ate into its margins. These two factors combined led to several years of trading in the red for Air Canada.

That was then, this is now. Air Canada is coming up on two years of being profitable and free cash flow-positive. The company still faces the risk of higher fuel prices but oil is staying within a reasonable range for now. On the whole, it looks like Air Canada's future is better than its recent past.

Suncor Energy

Suncor Energy (TSX:SU) is another TSX stock I'm seriously considering buying next year. Basically, I'm considering this stock as a hedge against the Air Canada position I'm likely to take. I think that Air Canada is likely to be quite profitable in the coming years, especially when said profits are measured against the company's share price. However, there are adverse scenarios that could materialize. For example, if oil prices went above $120, Air Canada could lose money. It suffered a big jump in expenses when oil prices went to $120 in 2022, and that could happen again.

By holding Suncor Energy and Air Canada in the same portfolio, weakness in one could balance out strength in the other in the most extreme adverse/positive scenarios. At the same time, both AC and SU would likely do well if oil prices do the most likely thing, which is stay within their five-year range. So, I think holding AC and SU in combination is a pretty decent idea.

First National

First National Financial (TSX:FN) is another stock I'm considering adding in 2025. This stock is not quite the "deep value" play that AC and SU are, but it has some things going for it. First, it has a high dividend yield (6.1%) that is well covered by earnings (64% payout ratio). Second, it lends money like banks but without the liquidity issues that can come from having demand deposits. Third and finally, the company has solid profitability metrics, including a 32% net margin.

First National stock does face some risks. For example, the Bank of Canada's rate cuts could easily eat into its net interest margin. However, this company can afford to have earnings decline and still be able to pay its dividend. On the whole, I'm bullish on First National.