1 Perfect Canadian Stock Down 17% to Buy and Hold Right Away

This TSX compounder is down from its highs, but the business is still growing and buying more growth.

Key Points
  • Colliers isn’t just office real estate, it also has fast-growing engineering and investment management businesses.
  • Revenue, EBITDA, and EPS all grew in 2025, suggesting operations remain healthy despite the stock drop.
  • If acquisitions integrate well, management expects mid-teens growth in 2026 across key profit metrics.

A Canadian stock can look like a perfect buy during a drop. There are simply some key factors investors need to look into. These include if the business is still growing, the balance sheet is in good shape, and the lower share price comes from market nerves rather than a broken story. That is the sweet spot investors want. A falling stock is not automatically a bargain, of course. But when a high-quality company keeps putting up solid numbers while the share price pulls back, that can create the kind of setup long-term investors love.

some REITs give investors exposure to commercial real estate

Source: Getty Images

CIGI

Colliers (TSX: CIGI) is one of those businesses that quietly touches a lot more of the economy than many investors realize. It provides commercial real estate services, engineering, and investment management across global markets. So this is not just a bet on office towers. It also has exposure to property services, capital markets, infrastructure-related engineering work, and investment platforms. That kind of mix gives it more than one growth engine.

Over the last year, the Canadian stock has kept building that broader platform. In 2025, engineering remained a major growth driver, helped by acquisitions and solid demand. Colliers also announced the acquisition of Ayesa Engineering, which it expects to close late in the second quarter of 2026. That adds even more scale to one of the Canadian stock’s fastest-growing segments. This is a business still expanding while the stock sits well below its recent high.

The operating story has also been healthy. In fourth-quarter 2025, commercial real estate revenue rose 9%, engineering revenue increased 3%, and investment management revenue climbed 5%. Assets under management reached $108.2 billion by year-end, up 9% from the year before. Those are not the numbers of a Canadian stock limping along, but instead show a business still moving forward across several lines at once.

Into earnings

The earnings picture looks strong as well. For full-year 2025, Colliers reported revenue of $5.6 billion, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $732.4 million. In the fourth quarter alone, adjusted EBITDA came in at $245.2 million, up 9%, while adjusted earnings per share (EPS) rose 7% to $2.42. The Canadian stock also delivered solid full-year adjusted EPS growth, reaching $6.66 versus $5.75 in 2024. That is the kind of steady progress that makes a lower share price look more like an opening than a warning sign.

Valuation is part of the appeal here. The Canadian stock holds a market cap around $7.5 billion for the TSX-listed shares, while the large pullback from the 52-week high suggests expectations have cooled quite a bit. This is not a dirt-cheap stock in the classic deep-value sense, but it does look a lot more reasonable than it did near the highs, especially for a business with recurring revenue, global reach, and several growth engines.

Looking ahead, management expects mid-teens growth in revenue, adjusted EBITDA, and adjusted EPS in 2026, helped by internal growth, recent acquisitions, and the planned Ayesa deal. That is a very encouraging outlook for a Canadian stock that has already been knocked down so sharply. The risks are real, of course. Commercial real estate activity can be cyclical, and acquisitions always need to be integrated properly. Even so, Colliers looks like the kind of company that can grow through different market environments, which is exactly what you want in a buy-and-hold name.

Bottom line

If you want one Canadian stock down hard enough to look tempting but strong enough to buy with confidence, Colliers makes a very solid case. It has a broader business than many investors realize, it is still growing, and management is guiding for more progress ahead. Sometimes the perfect buy is not the flashiest stock on the board, but just a very good company on sale.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colliers International Group. The Motley Fool has a disclosure policy.

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