Buy the Dip: 3 Canadian Stocks to Buy Even When Markets Fall
Written by Amy Legate-Wolfe at The Motley Fool Canada
Market dips feel uncomfortable, but are often when the best long-term opportunities show up. While it's tempting to sit back and wait out the volatility, the smarter move is to keep a watchlist of high-quality stocks you'd love to own, especially when they go on sale.
In Canada, three stocks stand out as top dip-buying candidates: Saputo (TSX:SAP), Boralex (TSX:BLX), and ATS (TSX:ATS). Each offers something different, but all share one thing in common: the potential to reward patient investors who are willing to act when prices slide.
Saputo is one of the largest dairy processors in the world. It produces cheese, milk, and other dairy staples that Canadians use every day. That kind of built-in demand is one reason why the Canadian stock can be a safe place to land during volatile markets.
In its most recent earnings report for the fourth quarter of fiscal 2024, Saputo posted revenue of $4.75 billion, up from $4.55 billion a year earlier. Net income came in at $74 million, down from $92 million, and earnings per share (EPS) dropped to $0.18 from $0.22.
Even with the drop in profits, revenue growth stayed strong, proof that its products continue to sell, even when costs rise. As of now, the stock trades at around $30 and has gained over 10% year-to-date. That momentum makes it a solid defensive play if markets turn lower.
Boralex is a renewable energy company, operating wind, solar, and hydroelectric power projects in Canada, the U.S., and Europe. The Canadian stock pulled back in recent months, making it an interesting buy-the-dip candidate.
In the first quarter of 2025, Boralex reported net earnings of $41 million, down from $73 million a year ago. Revenue for the trailing 12 months came in at $822 million, with net income of $11 million. While earnings are down, Boralex is still actively expanding. It recently launched a new 106-megawatt wind farm in Scotland, which will begin generating income soon.
Its long-term contracts with fixed prices help smooth out cash flow, and as the demand for green energy keeps growing, Boralex stands to benefit. The stock currently trades around $32, well below its 52-week high of $36.68, making it attractive for long-term investors who believe in the renewables story.
ATS builds automation systems used in manufacturing across a range of industries, including life sciences, electric vehicles, and consumer products. It's a more growth-oriented stock than the others on this list, but it's also more volatile, making dips especially appealing.
In its most recent earnings release for Q4 of fiscal 2025, ATS posted revenue of $721 million, down from $791 million the year before. The Canadian stock took a hit with a net loss of $68.9 million, tied to a one-time settlement with an electric vehicle (EV) customer. That hit pushed shares lower, but the Canadian stock's long-term prospects remain strong.
Its backlog remains healthy, and it continues to land new business. Earlier this year, it reported Q3 earnings of $0.32 per share, down from $0.65, but revenue remained stable at $652 million. ATS trades near $44, down from its 52-week high, giving investors a chance to scoop it up at a discount while the short-term noise settles.
Each of these Canadian stocks brings something different to the table. Saputo offers stability and a solid dividend. Boralex gives you exposure to the long-term growth of renewable energy. ATS is all about innovation and automation, with big upside once the macro picture improves. Together, these offer diversification across defensive, green, and growth sectors.
Buying the dip doesn't mean buying blindly. But when quality companies stumble on short-term issues, it's worth taking a closer look. If markets fall again, these three names could be your chance to buy great businesses at better prices, and then enjoy the rebound that often comes next.
The post Buy the Dip: 3 Canadian Stocks to Buy Even When Markets Fall appeared first on The Motley Fool Canada.
More reading
Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS]
Market Volatility Toolkit
Best Canadian Stocks to Buy in 2025
Beginner Investors: 4 Top Canadian Stocks to Buy for 2025
5 Years From Now, You'll Probably Wish You Grabbed These Stocks
Subscribe to Motley Fool Canada on YouTube
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends ATS Corp. The Motley Fool has a disclosure policy.
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