1 Canadian Stock Down 33% to Buy Immediately for Life

An underperforming, large-cap Canadian stock offers a rare buying opportunity for life.

Key Points
  • With the TSX cooling after a Middle East truce, beaten-down growth names like WSP Global (TSX:WSP) — down ~29% YTD and ~33% from its Sept 2025 peak — present a rotation opportunity.
  • WSP’s diversified consulting platform, record $19.7B backlog, recent TRC acquisition and $200M 2025–27 R&D/digital push position it to rebound as the business environment improves.
  • Strong Q1 momentum (revenue +3.7%, adjusted net earnings +30%), a modest 0.82% dividend, and current price $175.57 versus a $291.46 52‑week high (~66% upside) make today’s levels a rare long-term buying entry.

The TSX breached 35,000 points in early June 2026 and then hit four record-breaking closes. A fifth is unlikely at this point as the signed peace deal to end the Middle East war takes hold. Red-hot sectors such as energy and basic materials are cooling alongside geopolitical tensions.

Forward-looking investors could rotate away from erstwhile top-performing sectors and focus on growth stocks that have experienced weakness due to the conflict. For instance, WSP Global (TSX: WSP) in the industrial sector declined 33% on May 19, 2026, from its September 2025 peak. However, the tide should turn in its favour as the business environment improves.

A worker overlooks an oil refinery plant.

Source: Getty Images

Business overview

WSP Global aims to reshape the industrial sector and address the complex challenges it faces. The $23.9 billion pure-play consulting firm has a team of advisors, engineers, and scientists who provide specialized services to clients across various sectors worldwide. It is actively involved in natural environment projects.

The highly diversified platform is the core competitive advantage. WSP Global cites aging infrastructure, digital transformation, energy transition, water security, and urbanization as among the sector’s complex challenges. The company launched its 2025–2027 Global Strategic Action Plan focusing on four key areas.

Future focused

Grow, expand, leverage, and empower are the strategic action plan’s main objectives. This ambitious plan will include a $200 million investment in research, innovation, and digital partnerships. Its President and CEO, Alexandre L’Heureux, said, “Our portfolio is deliberately diversified across sectors where sustainability, resilience and digitization continue to drive investment.”

WSP Global achieved and surpassed its 2022–2024 financial targets. “We aim to push boundaries even further, accelerate innovation and unleash the full capabilities of our 73,000 professionals worldwide,” L’Heureux added. The plan should help WSP become a leading brand in the professional services universe.

The large-cap stock pays a modest 0.82% dividend, or $0.38 per quarter over the last 10 years. This is by design as WSP Global uses cash flow to pursue acquisitions. If you invest today, the share price is $175.57, down -29.2% year-to-date. However, rising to its 52-week high of $291.46 (+66% upside) is a strong possibility. Growth investors should take note that WCP is a capital compounder in the making.

Strong profitability

L’Heureux is excited about the market opportunities ahead. In Q1 2026, revenues increased 3.7% year-over-year to $4.5 billion, while adjusted net earnings rose nearly 30% to $297.7 million compared to Q1 2025. Notably, total backlog spiked to a record $19.7 billion, an 18.7% increase from a year ago.   

According to L’Heureux, the very active backlog and pipeline underscore the strength of WSP’s diversified platform. The newly acquired TRC Companies aided the growth in backlog. WSP acquired the premier U.S. power and energy company in February 2026 to enhance its support for complex infrastructure programs.

WSP Global has established a clear strategic direction to manage associated risks and support the transition to a low-carbon, nature-positive economy. ESG investors can refer to the company’s 2025 Climate and Nature Transition Plan and Global Sustainability Report.

Rare chance

WSP’s weakness is an anomaly, given the record backlog and active pipeline. Once the fog clears and the business climate stabilizes, a strong recovery is inevitable. The current share price is a good entry point, offering a rare buying opportunity for life.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends WSP Global. The Motley Fool has a disclosure policy.

More on Dividend Stocks

ETFs can contain investments such as stocks
Dividend Stocks

How to Use a TFSA to Generate $200 in Monthly Tax-Free Income

Use a TFSA to build $200 in monthly tax-free income with XEI and ZRE. See how these ETFs work and…

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

Smart Ways to Invest Extra Income and Say Goodbye to Financial Stress

Canadians have ways to make their extra income work as hard as they do and say goodbye to financial stress.

Read more »

Two seniors walk in the forest
Dividend Stocks

Sun Life Stock Pays 3.3%: How Much to Invest for $100 a Month in Dividends

Sun Life Financial (TSX:SLF) might be a massive bargain after Thursday's vicious plunge as stock markets sold off hard.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Turn Your TFSA Into $1,000 a Month in Tax-Free Income

Build toward $1,000 a month in tax-free income with a TFSA. See how Enbridge, Scotiabank and ZWC could help, and…

Read more »

customer fills up car with gasoline
Dividend Stocks

How Much Emergency Money Do Canadians Actually Need?

A safety fund equivalent to 3 to 6 months of living expenses is generally the baseline buffer that Canadians would…

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

Still Up Double Digits This Year: Should You Still Invest in TSX Stocks After Thursday’s Dramatic Drop?

The TSX has gained about 136% over the past decade. So, stay invested, dollar‑cost average, and maintain diversification. 

Read more »

Real estate investment concept
Dividend Stocks

Intact Stock: Would I Buy It for Growth, Income, or Both?

Intact’s modest yield makes profitable long-term growth the main attraction, with catastrophe losses putting the next purchase to a test.

Read more »

hiker with backpack in the mountains
Dividend Stocks

2 Top Canadian Dividend Stocks for $1,850 in Annual Passive Income

With reliable cash flows, high dividend yields, and strong growth prospects, these two Canadian stocks suit income-seeking investors.

Read more »