WSP Global Inc. (WSP.TO)

Potentially, fears of AI taking over their business are justified. Accenture is down even more than WSP. Some of the bottom, lower-level work will be taken over by AI. WSP could go to $120 as likely as $200. WSP is a wait-and-see with caution.

Instead of trying to pick one winner, use the IFRA ETF.

It's come off its highs, partly due to AI disruption fears, but he doesn't see software headwind risks. It benefits some from AI data centre construction. Is a solid executor. WSP hasn't found its bottom yet, but should happen soon as money rotates out of AI names. WSP should stabilize, then future quarters and earnings will prove that AI are not impacting the company.

Both good companies. To choose is a difficult choice, you'd have to make a call on their respective industries. As well, is the industry structurally challenged by AI -- those concerns are very much overblown.

WSP is exceptionally well run, with an exceptional CEO. STN is the same. Despite AI concerns, business models remain intact. AI will bring some changes in monetization of activities, and has already bettered their businesses. You can't do what they do via AI alone, it's much more complex.

He'd own both in equal weight.

Fears of AI replacing people. It's more likely, though, that AI and people will work together. 

Instead, he owns ATRL.

Has come off on fears about AI. Strong growth profile. Likes it a lot. A Buy today.

It's surprised him how badly they've both acted. Again, it seems the fear is that AI is somehow going to displace what they do -- that's not realistic when you look at their core businesses. He's been adding to both names recently.

In the basket of companies falling victim to the "AI witch-hunt" trade. Business made obsolete by AI is nonsense. Professional engineers have legal liability, while ChatGPT does not ;)  Much of the work has to be done on the physical site. AI will be an efficiency advantage. 

Well-positioned in a number of important verticals. Increased presence in power and energy, expects defense contracts. Backlog is big and growing. Tremendous long-term grower and compounder. Trades at only 15x PE, well below historical 25x.

BDT is on fire. A bit technically overbought. The $11B backlog is great. Data centre contract with BCE. Multiple's not expensive at 16x 2027 PE for 30% growth. Trades at a higher multiple than WSP and ATRL, as it's riskier. Try to get it cheaper.

Sentiment is the reverse for WSP and ATRL. Fears of AI disruption curtailing growth. Both look meritorious at these levels. He models 17% growth for ATRL at 14x PE. WSP models 17% growth at 12.5x PE. These 2 are more of a Buy, wouldn't sell.

Prefers it to Stantec. WSP trades at 15x forward PE which is historically low for them. There's concern that AI will eat into their business, but that doesn't make sense. They grow in double digits with a track record. They just bought a power company in engineering, which typical get premium valuations in the market. Power is enjoying tailwinds.

Are caught in the AI vs. software sell-off, with the market thinking WSP's clients will demand fewer services because clients can do more it themselves. She doesn't buy that. When you build a bridge, you can't use some AI program. This sector is under pressure. WSP recently reported a very strong quarter with higher margins. Are buying good companies, especially the US. Is surprised with this sell-off. WSP doesn't have a construction division, which can get a company into trouble. Are well-positioned in coming years for infrastructure building.

Focused on making acquisitions; disciplined acquirers and good integrators. No reason for that not to continue. Investors today want to see exposure to infrastructure projects and data centres. Not sure why stock's fallen.