It has been volatile times for Canada’s largest recreational sports vehicle maker, BRP (TSX:DOO). Over the past couple of years, BRP has been caught in the crossfire of rising interest rates, economic slowing, and a recent trade war between Canada, the U.S., and Mexico.
What caused BRP stock to dive?
The maker of world-renowned brands like Ski-Doo, Sea-Doo, and Can-Am was caught in this dynamic with too much inventory amidst weakening demand. It caused several quarters of declining sales and several quarterly earnings losses.
This $6.7 billion company crashed from a price of $120 per share in the summer of 2023 to a low of $45 per share in April of this year. However, since the low, its stock has rapidly recovered by more than 100% to where it trades over $90 per share.
Why is DOO up over 100% in the past five months?
Things started to turn for the stock when tariffs appeared to be not as severe as first anticipated. Likewise, BRP delivered better than expected second-quarter results. It reinstated year-end guidance in the quarter. That gave the market confidence that old inventory is dissipating and demand for its new products is starting to rise again.
Just today, BRP announced that it will be presenting a new strategic plan at its 2025 Investor Day, scheduled for October 9, 2025. With its longstanding CEO set to step down, investors will be eager to see the forward vision for the company. Its stock has risen 7% over the past five days. This TSX stock is cheap (compared to history) and could have more to run if you don’t mind the volatility.
