When markets dip, emotions tend to run high. It’s tempting to retreat to safety and wait out the storm. But history has shown that these moments often provide the best opportunities for long-term investors. Canadian blue-chip stocks, in particular, can offer both resilience and recovery potential. Right now, two strong candidates stand out during this sell-off: Stantec (TSX: STN) and CAE (TSX: CAE). Both are leaders in their respective fields, both have been pulled back from recent highs, and both look too attractive to ignore.
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Stantec
Stantec is a global leader in sustainable design and engineering. The company offers consulting services in infrastructure, water, energy, and environmental projects. Its work supports everything from climate change resiliency to growing urban populations. In other words, the kind of work governments and institutions can’t really afford to stop investing in, regardless of the economic climate.
In its first-quarter (Q1) 2025 earnings, Stantec reported net revenue of $1.6 billion, a 13.3% increase from a year ago. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 22.9%. Meanwhile, adjusted earnings per share (EPS) came in at $1.16, up nearly 29% year over year. Its backlog, a key indicator of future revenue, reached a record $7.9 billion, up 12.8% from Q1 2024. It also saw net revenue growth across all business segments and regions, showing the strength of its diversified operations.
Stantec is trading at about $141 as of writing. The company’s growth momentum, combined with its strong balance sheet, makes it a rare find in a market full of uncertainty. Analysts continue to hold favourable long-term outlooks for the stock, especially as public and private infrastructure investment remains strong globally. This includes clean water systems, climate-resilient cities, and renewable energy grids, areas where Stantec already has deep expertise.
CAE
Now, let’s talk about CAE. The company provides simulation-based training for aviation, healthcare, and defence clients. It’s a global player in pilot training and defence simulation, and that gives it exposure to multiple long-term growth trends. While the commercial aviation market took a hit during the pandemic, demand for pilots has come roaring back. Defence budgets are also growing worldwide, especially in NATO countries, and CAE is positioned to benefit.
In its fiscal Q4 2025 earnings, CAE reported revenue of $1.28 billion, up 13% from a year earlier. EPS came in at $0.42 compared to a $1.58 loss a year ago, and adjusted segment operating income jumped 106% to $258.8 million. The company’s backlog rose to $8.8 billion, a 37% year-over-year increase, with $6.2 billion of that coming from the civil aviation segment. That’s a key metric because it shows customers are locking in contracts well into the future.
As of writing, CAE shares are trading around $35, down roughly 10% from its 52-week high of $39.17. This pullback comes despite the company delivering strong earnings, growing cash flow, and aggressively paying down debt. For investors, it’s an opportunity to buy a global training leader at a more reasonable valuation, just as demand is heating up.
Foolish takeaway
Together, Stantec and CAE offer a balanced blend of stability and upside potential. Stantec gives exposure to infrastructure and sustainability trends that are backed by long-term spending. CAE offers access to the recovering aviation sector and rising global defence budgets. Both are trading below their highs, not because of business weakness but because of broader market nerves. That’s what makes them so attractive right now.
If you’re thinking about deploying an investment into the market during a sell-off, consider putting some of it to work in names like these. These are not quick wins or speculative plays. These are durable businesses with global reach, competitive advantages, and clear paths for growth. Buying them when others are hitting pause can pay off down the road.
Sometimes, the best investment moves don’t feel comfortable in the moment. But if history is any guide, that discomfort is often a signal that you’re on the right path. Stantec and CAE won’t stay discounted forever. That’s why now might be the perfect time to take a closer look.
