Watching a high-flying stock fall by almost 50% isn’t easy, but there may be more to the story than just the drop. What if that dip isn’t a red flag, but a rare opening to buy a fundamentally strong stock at a steep discount? One top Canadian stock looks exactly like that at current levels. While it’s still navigating a tough economic landscape, the business has a solid plan in motion. And that’s what makes it an attractive pick for investors who prefer holding great stocks for the long term. Let’s take a closer look.
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BRP stock: Strength in the rough
The Canadian stock I want to highlight here is BRP (TSX:DOO) — the Valcourt-headquartered powersports products maker behind well-known names like Ski-Doo, Sea-Doo, and Can-Am. At its peak in 2021, the stock traded at $125.59. Fast forward to today, and it’s sitting around $66 with a market cap of around $4.9 billion. That’s a steep 47% decline, but this company hasn’t lost its spark.
Over the last year, BRP has had its fair share of challenges as its revenue has fallen, profit margins have tightened, and earnings have taken a hit. In the first quarter of its fiscal year 2026 (ended in April 2025), the company’s revenue fell 7.7% YoY (year-over-year) to $1.9 billion. Similarly, its adjusted EBITDA (which stands for earnings before interest, taxes, depreciation, and amortization) also declined by about 35%.
Those numbers might look discouraging at first, but context matters. Much of the recent softness in BRP’s financials was expected. Notably, the company has been deliberately reducing its dealer network inventory to align supply with softer retail demand, especially in its year-round and seasonal products categories. And that strategy is already showing signs of progress.
Doing the right things at the right time
BRP’s strength lies in how it’s managing through the downturn. The company is mainly focusing on its core powersports business. It’s exiting the marine segment and reallocating resources to support its biggest winners like all-terrain vehicles, side-by-sides, and snowmobiles. That decision to double down on powersports looks smart, especially given the industry-wide slowdown in consumer demand.
On a brighter note, the powersports products firm’s retail performance, especially in Canada and Latin America, is still holding up better than expected. In addition, BRP’s free cash flow in the latest quarter came in strong at $162 million, reflecting a solid 34% YoY jump. The company also kept its quarterly dividend intact at $0.215 per share, giving this top Canadian stock a decent yield of around 1.3%.
A business built to rebound
Besides its cost-cutting efforts, another factor that makes BRP an amazing long-term buy is that it’s actively investing in innovation and improving its product lineup. Meanwhile, the company’s efforts to clean up its inventory levels have been working. In the latest quarter, its dealer inventory fell 21% YoY, which puts the company in a healthier position heading into the second half of the calendar year 2025.
With new product launches scheduled at its upcoming dealer event, BRP stock could be poised for stronger retail performance when demand eventually rebounds – which could help its share price recover sharply.
