AtkinsRéalis Group Inc. (ATRL.TO)

Looks like an interesting place for new $$.

Came down with other software firms, but hasn't sprung back up. Bought for nuclear exposure and nation-building. Last quarter beat. Maintained full-year guide. Backlog flat last quarter. Pricier than WSP and STN. 

Growing 17%, PE is ~15x. A coiled spring. Not an "if" story, but "when".

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

Some of their business is in nuclear, making it interesting, but the stock is high because of it. Canadian nuclear technology hasn't sold much, so he's cautious about this.

Both benefit from the AI centre build and construction projects by the Canadian government. Are sold performers long term. He prefers Stantec. Like WSP, they should see the net benefit of AI data centres, but are trading like software stocks. Eventually, this reverses to the upside after we see sustained earnings momentum and beats.

Engineering consultants were hit by concerns on Middle East and on AI eating their lunch. Backlog down a bit last month. Quarter beat, full year guidance upheld. Way too cheap down here. Priced at 16x, growing 17%. Stick with it, and you shall be rewarded.

Fears of AI replacing people. It's more likely, though, that AI and people will work together. Owns this name because of nuclear exposure, which should provide a big business ramp for a while. Chart looks better than peers.

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.

He sold it after the chart broke support last month. He took losses.

Doesn't agree that AI is going to ruin construction businesses. The design portion of projects may be streamlined through AI, such as accelerating gathering data, but the fundamental narrative doesn't change. The Build Canada projects must be good for construction companies.

Not a sector he'd play, but it's OK at these levels.

Tremendous run, and now some engineering firms are under pressure. A laggard. You want to own things people really care about, and he's been very selective and carving out underperformers.

Midterm election years tend to have weakness in June, July, August. We'll see. Market breadth is not ideal right now. Look for better opportunities. 

All engineering firms are down over 20%. They are perceived to be pressured by AI taking over their business. ATRL has ouperforned the others, because they have nuclear exposure and growth.

Very strong portfolio of engineering and design and consulting. Plays into infrastructure, energy, and environment. Focus on nuclear will be important, with 15% of revenue coming from there. If Hwy 407 were sold at a good price, would be a catalyst to create value (but he wouldn't buy something just because there might be a deal down the road). Yield is 0.1%.

It is an uptrend but he recently sold two weeks ago because it was overbought and there may be a pullback. It is fine for the longer term investor.