Trying to time the next market dip perfectly is a good way to stay stuck. A better move is to line up stocks you would be happy to own through a rough patch and beyond it. That usually means looking for strong balance sheets, businesses with real demand behind them, and a valuation that does not assume perfection. With that in mind, these TSX stocks both look like names worth watching before the next wobble hits.
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ATS
ATS (TSX: ATS) builds automation solutions for customers in life sciences, food and beverage, transportation, consumer products, and energy. That makes it relevant now, as companies still need to automate production, cut labour pressure, and improve efficiency even when the broader market gets jumpy. Over the last year, ATS also dealt with a meaningful leadership shift, with Andrew Hider leaving and Doug Wright stepping in as chief executive, which gives investors a fresh lens on execution.
The more important part is that the numbers started to improve. In its latest reported quarter, fiscal Q3 2026, revenue rose 16.7% year over year to $760.7 million, net income climbed to $30 million from $6.5 million, and adjusted basic earnings per share (EPS) improved to $0.48 from $0.32. Order bookings came in at $821 million, and backlog stayed hefty at just over $2 billion. The prior quarter also looked solid, with revenue up 18.9% to $728.5 million and backlog up 13.5% year over year to $2.07 billion.
Valuation is where ATS gets more interesting. The trailing numbers still look messy because fiscal 2025 included a net loss, so the trailing price-to-earnings (P/E) ratio looks inflated. But the market cap was around $4.2 billion in mid-March, against roughly $2.53 billion in fiscal 2025 revenue, which points to a price-to-sales ratio around 1.53 at writing. That is not dirt cheap, but it is not demanding for an automation company that is returning to growth.
DOO
BRP (TSX: DOO) makes Ski-Doo snowmobiles, Sea-Doo watercraft, Can-Am off-road vehicles, and motorcycles, so it lives in a more consumer-driven space. That can make the TSX stock choppier, but it also means sentiment can shift fast when sales stabilize and new products land well. Over the last year, BRP kept rolling out product updates and managed through a still-soft retail backdrop.
Its recent earnings show why the TSX stock still has some bite. In fiscal Q3 2026, revenue rose 14% year over year to $2.25 billion, helped by higher off-road vehicle deliveries and a better product mix. Net income increased by $45.9 million in the quarter, and BRP raised its full-year fiscal 2026 guidance to around $8.3 billion in revenue and about $5 in normalized diluted EPS. Earlier in the year, results were more mixed. Fiscal Q1 revenue fell 7.7%, while Q2 revenue rose 4.3%, and North American retail sales in Q2 were down 11%.
That said, the valuation gives investors a bit more room for error than ATS. BRP trades at roughly 0.78 times sales, about 11 times forward earnings, and a trailing P/E of 25. For a TSX stock with iconic brands, improving profitability, and the potential for cleaner comparisons if demand steadies, that is not a bad setup. The risk is obvious: this is still a discretionary name, so if consumers pull back harder, BRP can feel it quickly. But for investors willing to ride some bumps, it looks like the kind of cyclical stock that could reward patience bought at the right price.
Bottom line
If I were building a buy list before the next market dip, ATS would be my steadier growth pick and BRP would be my more opportunistic value play. ATS offers backlog and automation exposure, while BRP brings a cheaper multiple and a recovery angle. Neither is risk-free, but both TSX stocks have enough going right that a pullback could look more like an opening than a warning sign.
