Buy the Dip, Eh? 3 Canadian Stocks to Scoop Up During This Correction

Looking for value in a correction? Now could be the time to pick up these three Canadian stocks.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 21, 2025 5:00 pm EDT

In the world of investing, market corrections can feel like turbulent times. However, for those with a keen eye, these periods offer opportunities to acquire quality stocks at more attractive prices. Let’s explore three Canadian stocks that have experienced recent dips and may present compelling investment prospects.

Medicinal research is conducted on cannabis. — Source: Getty Images

Magellan

Magellan Aerospace (TSX:MAL) specializes in aerospace systems and components. The Canadian stock has a rich history of contributing to both commercial and defence aviation sectors. In its recent financial disclosures, Magellan reported full-year 2024 revenues of approximately $942.4 million, marking a 7.1% increase from the previous year. Net income saw a significant rise to $35.5 million, up from $9.3 million in 2023.

This improvement suggests enhanced operational efficiency and a robust demand for its products. Despite these positive figures, Magellan’s stock has faced some headwinds, possibly due to broader market dynamics affecting the aerospace industry. For investors considering the aerospace sector, Magellan’s solid financial performance and established market presence make it a stock worth watching.

Canopy Growth

Canopy Growth (TSX:WEED) is a prominent name in the cannabis industry. The Canadian stock has been at the forefront of cannabis production and distribution, both for medical and recreational use. In its third-quarter fiscal 2025 results, Canopy reported net revenue of $74.8 million, a slight decrease of 5% compared to the same period the previous year. The company also narrowed its net loss to $121.9 million, an improvement from the $216.8 million loss reported in the prior year’s quarter.

Notably, Canopy’s medical cannabis segment experienced a 16% revenue increase, reflecting a growing acceptance and demand for medical cannabis products. However, the Canadian stock announced plans to sell up to $200 million worth of stock to strengthen its cash position and address debt obligations. This announcement led to a 9% drop in its stock price, bringing it to an all-time low of $1.26 per share. Despite these challenges, Canopy’s efforts to stabilize its financials and its established position in the cannabis market may present a buying opportunity for investors with a higher risk tolerance.

Shopify

Shopify (TSX:SHOP) is a global e-commerce platform that enables businesses of all sizes to set up online stores. The Canadian stock has been a significant player in the digital commerce revolution. In its 2024 financial year, Shopify reported revenues of approximately US$8.9 billion, reflecting a 26% year-over-year increase. This growth underscores the continued shift towards online shopping and the demand for robust e-commerce solutions.

Despite its impressive revenue growth, Shopify’s stock has experienced volatility, influenced by broader market conditions and investor sentiment towards tech stocks. With a market capitalization of around US$125 billion, Shopify remains a dominant force in the e-commerce sector. For investors looking to capitalize on the growth of online retail, Shopify’s strong financial performance and market leadership make it a stock to consider.

Bottom line

Investing during market corrections requires careful consideration and a focus on long-term potential. While these Canadian stocks have faced recent challenges, their fundamentals and market positions may offer opportunities for those looking to buy the dip. As always, it’s essential to conduct thorough research and consider your individual financial goals before making investment decisions.