Trade turbulence makes investors lazy in the same way every time. Cross-border friction appears, so they assume every export-linked business suffers and sell first, ask questions later. That’s exactly how Canadian stocks can surprise. The winners are usually the ones with demand that doesn’t depend on smooth trade — businesses that can pivot supply chains, pass through costs, or quietly take market share while competitors scramble. The surprise comes from execution and resilience, not from a perfectly calm world.
For Canadian investors willing to look past the reflexive selling, two names are showing exactly that kind of resilience right now.
Source: Getty Images
CAE: The Training Business That Gets More Valuable When the World Gets Tense
CAE (TSX: CAE) CAE makes flight simulators and provides training services for civil aviation and defence customers — and training doesn’t stop when politics gets noisy. Airlines still need pilots trained efficiently. Militaries often increase readiness spending when geopolitical tension rises. That combination gives CAE a business mix that can hold up, and even strengthen, in exactly the environment that tends to rattle most manufacturers.
The recurring, contract-driven nature of training revenue matters here. If trade turbulence slows aircraft deliveries or complicates maintenance supply chains, airlines can still lean on training as a controllable efficiency lever. That’s where CAE can quietly gain favour while investors chase whatever headline theme dominates the week.
The numbers support the rebuild. In fiscal Q3 2026, CAE reported revenue of $1.25 billion, up from $1.22 billion a year earlier. Reported EPS of $0.34 was down from $0.53, but adjusted EPS of $0.34 was up from $0.29 — improving underlying performance even as reported results reflected other moving pieces. The stock recently carried a market cap around $13.6 billion and a trailing P/E around 35.7. The upside comes from sustained defence training demand and continued civil aviation recovery. The risks include slower airline spending, execution risk on ongoing transformation initiatives, and any supply-chain friction that delays simulator deliveries.
Gildan Activewear: A Staples-Style Apparel Model Built for Cautious Consumers
Basic apparel behaves differently than most trade-exposed goods. Gildan Activewear (TSX: GIL) sells everyday activewear and basics — the kind that end up as uniforms, printable blanks, and repeat-purchase staples — and demand for essentials tends to hold up better than demand for discretionary fashion when trade turbulence hits. When input costs and logistics get complicated, the companies that manage production planning and inventory better than their competitors can quietly take share from weaker players who can’t absorb the friction.
That’s been Gildan’s story over the past year: stabilization, operational improvement, and execution that shows up in margins and earnings rather than in narrative. The results give it credibility. In Q4 2025, Gildan reported net sales from continuing operations of $1.08 billion, up 31.3% year over year, and adjusted diluted EPS from continuing operations of $0.96. Full-year 2025 net sales landed around $3.62 billion. The stock recently carried a trailing P/E near 21.3 and a dividend yield around 1.5%. The upside comes from continued margin improvement and stable demand for basics. The risks include cost swings, currency moves, and the possibility that a sharper consumer slowdown eventually reaches even staple apparel categories.
Bottom line
For investors who want to stay invested through trade turbulence without taking on unnecessary exposure, the best opportunities are often the ones that stay useful regardless of what headlines do. CAE offers a training and defence-adjacent model that strengthens when geopolitics gets tense and airlines focus on efficiency. Gildan offers a staples-style apparel business that can protect demand and earnings when consumers and businesses get cautious.
Neither stock is immune to volatility. But both have a built-in reason to keep delivering — and that’s exactly the kind of edge worth owning when the selling is indiscriminate.
