Don’t Miss Out: Two Canadian Blue-Chip Stocks Become Irresistibly Tempting in the Market Selloff

As stock prices fall, feelings often escalate. It can be alluring to seek refuge and sit things out until the market stabilizes.

storm

However, history demonstrates that such periods frequently present ideal chances for long-term investors. Specifically, Canadian blue-chip equities may exhibit notable durability and rebound prospects. Currently, amidst this downturn, two compelling options emerge:

Stantec

(

TSX:STN

) and

CAE

(

TSX:CAE

). They are both industry pioneers, they’ve both dipped recently after reaching new peaks, yet remain too tempting to overlook.

Stantec

Stantec stands out as a worldwide pioneer in sustainable design and engineering. They provide professional consultancy for initiatives related to infrastructure, water management, power solutions, and ecological conservation. Their expertise spans efforts like enhancing resilience against climate shifts and accommodating expanding city dwellers. To put it simply, these types of undertakings remain essential investments that both governmental bodies and organizations must continue funding irrespective of prevailing financial conditions.

In its Q1 2025 financial report, Stantec announced a net revenue of $1.6 billion, marking a rise of 13.3% compared to the same period last year. The company’s adjusted EBITDA climbed by 22.9%, and its adjusted EPS was recorded at $1.16, representing an almost 29% surge year-over-year. Notably, their backlog—a crucial metric for predicting future income—reached a high point of $7.9 billion, reflecting a hike of 12.8% when contrasted with Q1 2024. Additionally, they experienced expansion in net revenues across every operational sector and geographical area, highlighting the robustness of their varied activities.

As of this writing, Stantec’s share price stands around $141. Its robust financial health coupled with consistent growth prospects positions it as an exceptional opportunity amid today’s uncertain markets. Financial experts maintain optimistic long-term projections for the stock, particularly due to sustained investments in both public and private infrastructures worldwide. These sectors encompass clean water supply networks, resilient urban developments, and sustainable power grids—areas where Stantec boasts considerable experience and proficiency.

CAE

Let’s discuss CAE now. This firm offers simulation-driven education services for sectors such as aviation, healthcare, and defense. As an international leader in both pilot instruction and defense-related simulations, they have access to various sustained expansion opportunities. Although the commercial airline industry suffered setbacks due to the pandemic, interest in new pilots has rebounded strongly. Additionally, military spending is increasing globally, particularly among NATO nations, which positions CAE well for future gains.

In its fourth quarter financial report for fiscal year 2025, CAE announced revenues totaling $1.28 billion, marking an uptick of 13% over the previous year. Earnings per share stood at $0.42 versus a deficit of $1.58 per share during the same period last year. Adjusted segment operating income surged by 106%, reaching $258.8 million. The firm’s order backlog climbed to $8.8 billion—a significant rise of 37% when compared to the prior year—with $6.2 billion attributed specifically to the civil aviation sector. This figure is particularly noteworthy as it indicates clients are securing agreements far ahead into the future.

Currently, CAE’s share price stands at approximately CAD$35, marking a decline of about 10% from its 52-week peak of CAD$39.17. Despite this dip, the firm has been reporting robust financial performance with increasing cash flows and substantial debt reduction. From an investment perspective, this presents an attractive entry point for acquiring shares in a leading international training provider when valuations have become more appealing amid rising market demands.

Foolish takeaway

Combined, Stantec and CAE provide a well-rounded mix of steadiness and growth opportunity. Stantec provides insight into enduring investments in infrastructure and sustainability. Meanwhile, CAE grants entry to an aviation industry on the mend along with escalating international defence expenditures. Currently, both companies are priced lower than their peak values; this isn’t due to operational issues but rather widespread market anxiety. This situation enhances their appeal at present.

If you’re considering putting money into the market during a

sell-off,

Think about investing in names such as these. They aren’t easy shortcuts or risky bets. Instead, they represent solid enterprises with international presence, strong market positions, and evident opportunities for expansion. Purchasing shares when other investors are taking a step back could prove beneficial in the long term.

Occasionally, the most prudent financial decisions may not seem appealing at first. However, historical trends suggest that this unease frequently indicates you’re heading in the correct direction. Both Stantec and CAE aren’t likely to remain undervalued indefinitely. Therefore, it could be an ideal opportunity to conduct a more thorough assessment.

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Stock Market Decline: Two Major Companies Become Irresistible Investment Opportunities

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More reading

• 
  1 Entirely Canadian Equity Declines 17% for Immediate Purchase and Holding
  
• 
  TSX Update: Key Stock Trends to Track on Thursday, May 15
  
• 
  Why CAE Shares Soared 9% Following Earnings
  

Fool contributor

Amy Legate-Wolfe

The Motley Fool does not hold shares in any of the stocks mentioned. The Motley Fool has no position in any of the stocks discussed.

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