The S&P/TSX Composite Index had another great year this past year — up more than 30%. But while there were quite a few Canadian stocks that were star performers, there were some that couldn’t quite participate in this rally.
Let’s take a look at the tale of two opposite performers.
Source: Getty Images
BlackBerry stock: Up 117.6% in the last year
2026 has been a banner year for BlackBerry (TSX:BB). But in the years prior, many investors were understandably skeptical about BlackBerry, as the stock had seen over 10 years of stagnation. The stock price was stagnant, revenue was stagnant, and earnings were nonexistent.
But behind the scenes, BlackBerry was working on a reinvention. BlackBerry focused on the business of machine-to-machine connectivity as well as the business of secure communications — two segments that management expected had bright futures. The reinvention was not easy, and it was not quick. Hence, BlackBerry stock just sat there, unable to climb higher due to losses and a lack of clarity as to when the new businesses would start to see real growth and profitability.
In the last year, however, things started to fall into place as BlackBerry’s fiscal 2026 results finally showed some signs of life. Full-year revenue came in at $549.1 million, 3% higher than the prior year. More importantly, BlackBerry’s fourth -uarter total revenue increased 10% to $156 million. Its QNX segment posted a 20% increase in revenue to a record $78.7 million. And QNX’s backlog increased to approximately $950 million, signalling multi-year revenue growth visibility.
If this momentum continues, BlackBerry’s stock price will continue to have more upside. Today, the shares of this Canadian stock remain attractively valued in my view.
Cineplex: Down 3.6% in the last year
I hate to say it, but the doubters were right about Cineplex (TSX:CGX) in the last year. The reason I hate to say it is because I have been a holder of this Canadian stock, as I’ve believed that it’s been undervalued. But regardless of this belief, the fact is that Cineplex stock has continued to suffer from lacklustre results, increasing losses, and a general inability to drive meaningful and sustainable revenue and earnings growth. So, the doubters have absolutely been right.
As for me, I continue to believe that Cineplex stock is undervalued and has potential to recover. Hence, I remain patient — and I continue to hold the stock, as there are signs of life. In Cineplex’s most recent quarter, attendance increased 17.3% to 9.8 million. While this is below pre-pandemic levels, it is a move in the right direction. Also, Cineplex’s box office results were strong, and increased 25% to $127.4 million.
Finally, Cineplex stands to benefit from the fact that theatrical windows have begun to increase after years of reductions. Universal Studios and even Netflix are recognizing the value of theatrical releases, and this is causing the pendulum to turn back toward longer windows.
In this scenario of increasing attendance and a more favourable industry dynamics, Cineplex will benefit greatly as it is the largest movie exhibition company, with a more than 80% share.
The bottom line
The two Canadian stocks discussed in this article are good examples of how long it can sometimes take for an investment thesis to play out and the importance of patience and diversification. I will continue to follow both of these Canadian stocks as the year progresses, but in the meantime, I continue to be bullish on both of them.
