The crash everyone is waiting for rarely sends a calendar invitation. More often, a strong stock climbs 30%, 50%, or even 100% while cautious investors keep promising themselves they’ll buy after the “inevitable” pullback.
That can create an expensive little trap. If a $100 stock doubles and then falls 20%, it lands at $160. The patient bargain hunter gets the correction, and still pays 60% more than the original price.
This isn’t an argument for buying anything at any price. It’s an argument against making a crash the only condition under which you’ll invest. When a business keeps improving, a gradual entry can beat an all-or-nothing bet on the perfect bottom.
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Don’t be left behind
Dollarama (TSX:DOL) and Bombardier (TSX:BBD.B) aren’t overlooked bargains. Their share prices already reflect plenty of optimism. Yet both have operating momentum that could keep pushing their earnings, and potentially their stocks, higher before a broad selloff ever arrives.
The better question isn’t whether these shares could fall. Of course, they could. It’s whether the businesses can create enough value to make today’s price look more reasonable later. That’s the tension to examine when researching Canadian growth stocks.
DOL
Dollarama stock hardly looks undiscovered around $192 per share at writing. Still, its latest quarter explains why investors remain interested. Fiscal first-quarter sales rose 21.4%, helped by its newly added Australian operations, while Canadian same-store sales increased 5.6%. Customer traffic grew 3.5%, suggesting shoppers weren’t merely paying higher prices but were visiting more often.
The Canadian network reached 1,719 stores, and management expects another 60 to 70 openings this fiscal year. Australia provides a second runway where Dollarama stock can apply its sourcing, merchandising, and private-label experience.
That expansion won’t be free. Dollarama stock’s quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, a measure of core operating profitability, slipped to 31.6% from 32.6%, largely because Australia is less profitable and carries transition costs.
Valuation is the clearest reason not to chase. At roughly 39 times trailing earnings, Dollarama stock is priced for continued execution. A soft quarter could punish the stock quickly. But if Canadian traffic stays resilient and Australia improves, investors waiting for a deep discount may watch earnings grow into part of that premium.
BBD
Bombardier stock offers the more dramatic example. Near $356, the stock has climbed roughly 136% from its 52-week low and sits close to its high. That chart could justify waiting. The business makes the decision less comfortable.
Second-quarter revenue reached US$2.15 billion, while the order backlog stood at US$21.8 billion at the end of June, US$4.3 billion higher than at the end of 2025. That backlog gives Bombardier stock meaningful sales visibility. Its aftermarket services business also grew 14% in the quarter, providing recurring revenue from the installed fleet even after aircraft have been delivered.
The shares trade near 29 times trailing earnings at writing, so investors are paying for better execution. Debt is the central risk. Bombardier stock ended 2025 with net debt near US$3 billion and faces substantial maturities through 2027. A slowdown could make that burden feel heavier.
Still, if management converts its backlog into deliveries, expands service revenue, and keeps reducing leverage, earnings could rise faster than today’s multiple suggests. Bombardier stock doesn’t need another heroic rerating to advance, but just keep doing what the backlog says it can.
Bottom line
I wouldn’t put a full position into either stock today. I’d start smaller, review the next results, and add only if the thesis remains intact. That offers participation if momentum continues while preserving cash for volatility.
Investors who want a practical framework can build a position gradually instead of trying to call one perfect entry. It’s less exciting than predicting a crash, but investing tends to reward discipline more reliably than drama.
Dollarama stock and Bombardier stock could both fall in a market correction, and neither looks cheap today. Yet waiting indefinitely carries its own risk. Dollarama stock has store expansion and an international runway. Bombardier stock has a large backlog and a growing service operation. A measured starter position respects the valuations without assuming these businesses owe investors a better price.
