Ernest Wong, Head of Research, Baskin Wealth ManagementWSP Global Inc.WSP.TOBUYOct 28, 2026

Absolutely. Shares have fallen with software companies, but the price has stabilized. The narrative has to be disproved that AI won't eliminate some of their services in software and engineering. This will take time. WSP is an indispensable company. WSP is attractive, but he prefers software to engineering now. Is WSP as good a capital allocator as some of the companies he owns? However, there's no evidence that AI will impact the software and engineering companies. In fact, there are improvements because of AI. He's not in engineering now, but he's quite bullish the space because of the overall economy.

Gone through a big correction. Be careful. His team needs to see fundamental characteristics that are good and getting better, or acceleration in underlying numbers. Earnings growth estimated 54% this year, but only 15% for next. MAs have rolled over, technically broken.

Long-term picture for infrastructure is positive, but the rate is in question. Impacted by rising cost of money.

The chart has been smashed. It just made a bottom and could be bottoming out now. The chart is washed out. He just bought a tranche, but if WSP falls below support, he's out. But if it bounces, he'll sell in the low $200s. He has to watch it constantly. It's a tax-loss selling victim, but will rebound.

An EPC firm, but the C is for consulting (not construction). The threat of AI has hit it (and STN) disproportionately to firms that do construction. In sectors that will see significant investment: roads, rails, transit, environment, power. Backlog's grown ~23%. EBITDA margin is 19% (consulting tends to have higher margins than construction).

Trades ~10x EV/EBITDA, attractive. Significant upside, but leg in to protect yourself, and do that on pullbacks.

Is solid, mature company that will make it through the long term. It is partially cyclical, because it's leveraged to infrastructure and government spending. The market is starting to discount that fiscal restraint coming from the government as opposed to the last few years when the government was spending to keep the economy going. There are challenges to WSP. It's under its moving averages, and he likes to buy low and sell high. Holding market weight is okay with this. Not sure if there's more downside before upside. The price is certainly better than 6-8 months ago.

Whole sector's had almost a SaaSpocalypse. No longer doing the acquisition in Europe, stock had been under pressure with that overhang.

The worry is that AI is making engineers more efficient, so hourly billings--and revenues--will decrease. No, firms won't pass all construction work to AI, so there remains a need for WSP, and they will use AI to become more efficient. WSP is short of engineers, too. WSP is positioning themselves in attractive markets like data centre builds.

Still a place to go. You want to buy the great areas when they're down and people are forgetting about them. Doing everything right. Benefits from Canada's nation-building. 

Growing 16%, trading at 13x PE. Last quarter was a really nice beat, organic growth reaccelerated. Raised full-year guidance. Pick away, buy more, be patient. Sell some puts and be paid a nice premium.

Another AI baby thrown out with the bathwater. Nonsense that vibe-coding will replace professionals with an iron ring. In a diversity of areas. Robust backlog of $20B in contracts. Strong visibility and demand in core markets, which are global. We have an infrastructure deficit, ongoing buildout of AI and data centres. Catalysts from environment and sustainability. 

Leading and active consolidator of globally fragmented engineering services. Hunting big game. Trading at a mid-teens multiple. Pullback is very buyable. Yield is 0.82%.

Chart shows how prudent it is to take $$ off the table when you've made some profit. Then try to find the next really good opportunity to build wealth. If you don't trim along the way, the outsized weight will swing your portfolio around every time the stock moves.

It's on his watch list. After a downtrend, he doesn't want to see another peak and fall. He wants to see the current move confirmed. You can leg in now, but buy only a little.

Sector's been hit really hard on fears of AI. As well, market didn't like recent acquisition. If you own, continue on. If you're down, really good time to buy.

See his Top Picks.

Sees upside and would buy it here. Is global with only 20% of operations in Canada. AI has been an overhand with a false belief that AI will replace some of WSP's services. WSP partners with Microsoft to do some of their AI tools. WSP is using AI to increase productivity. They are disciplined in companies they buy, including two recent ones to raise their profile in the power industry in the U.S.

Absurd to think ChapGPT can replace a professional engineer. Earnings grew 22% compared to last year. Segment with fastest organic growth is probably power/energy. Big acquisition in February has really bolstered growth stateside, trying to make another in Europe. High margins. At 15x PE, massive discount to 5-year average of 25x.