Got Patience? 2 Turnaround Growth Stocks for Steady Investors

2026-03-02 15:45:00 ET

Recent turbulence has provided investors with plenty of long-term upside potential. At least, for those with the ability to wait out whatever storm we’re seeing brew on the geopolitical front right now.

In terms of overlooked and undervalued opportunities , I have a few ideas I think investors may want to consider on the TSX. Here are three of my top Canadian turnaround picks for investors thinking long term.

Cargojet

Cargojet ( TSX:CJT ) has quietly engineered a meaningful turnaround in recent quarters.

This monopoly-style business relying on surging air freight growth over time has returned to solid profitability with annual profit growth averaging roughly 18% over the last five years. Analysts now forecast earnings to grow around 15% annually and revenue close to 6%, outpacing the broader Canadian market and underlining this company’s renewed earnings power.

A big part of the story is Cargojet’s defensive contract base. Long-term agreements tied to Canadian e-commerce demand and key partners such as large global logistics players have led domestic revenue to grow at a double digit rate in past quarters. This surge has been aided by events like Prime Week and a structural shift to online shopping, reinforcing the durability of its core network.

Despite this reality, CJT stock trades at about seven times earnings versus an industry multiple above 10. I believe this is a stock that’s worth considerably more than it’s current valuation, with plenty of upside as profitability improves and investors look to capitalize on this stock’s discounted valuation over time.

Cineplex

A company I’m still somewhat bearish on, but which was also seen some consolidation of late and may be worth considering for some investors, is Cineplex ( TSX:CGX ).

Shares of the Canadian cinema giant have rebounded off of last year’s lows. Indeed, Cineplex’s business has moved from crisis mode to a measured recovery, with the company’s quarterly revenue coming in right around $350 million this past quarter, alongside a small profit. That’s compared to very sizable losses a year ago, with a trailing 12-month loss of more than $35 million on $1.35 billion of revenue last year.

Now, 2025 was also an improvement on prior years, and everything’s relative. The pandemic really did shift consumer preferences away from the big screen toward home theatres everywhere.

That said, I think these recent fundament factors speak to a company steadily regaining its financial footing, even as results still depend on Hollywood’s release slate and consumer discretionary spending. Cineplex is also extracting more value per guest, with box office and concession revenue per patron hitting record levels in recent quarters. This was fueled by premium formats and higher in-theatre spending.

Despite these catalysts, Cineplex stock trades around 0.4 times sales, well below both direct peers (about one times) and the broader North American entertainment group (roughly 1.4 times). That’s while analysts have continued to provide higher fear value targets via their distributable cash flow models. For investors comfortable with some volatility, that improving earnings profile and low multiple create an appealing turnaround growth setup.

The post Got Patience? 2 Turnaround Growth Stocks for Steady Investors appeared first on The Motley Fool Canada .

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cargojet. The Motley Fool has a disclosure policy .

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