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The ongoing 2025 U.S.-Canada trade war, which began in February, could continue to create volatility in the stock market, leaving investors feeling uncertain. While short-term fluctuations can be concerning, long-term investors can seize opportunities during market corrections. One of the simplest and most effective strategies to navigate this uncertainty is identifying strong, fundamentally sound businesses and dollar-cost averaging into these stocks over time. By focusing on solid companies and using technical analysis to pinpoint ideal entry (and exit) points, investors can ride out market turmoil and capitalize on opportunities as they arise.
Savaria
Savaria (TSX:SIS), a leader in the healthcare and accessibility sectors, has seen its stock experience a pullback from a high of about $24 per share in late 2024. With shares currently trading below $17, this correction presents a compelling buying opportunity for long-term investors looking for a discounted stock.
Savaria specializes in mobility and accessibility products, such as stair lifts, vertical platforms, and home elevators. These products should have increasing demand as the aging population grows and the need for home healthcare solutions continues to rise. The company’s expansion, both through organic growth and strategic acquisitions, positions it well for future success.
Moreover, Savaria offers a monthly dividend with an attractive yield of approximately 3.2%. With a strong focus on innovation and a broad product portfolio, Savaria is well-positioned to benefit from the long-term trends in healthcare and accessibility. Currently, analysts believe the stock offers a 28% discount, making it an enticing option for those seeking both growth and income.
Stella-Jones
Similarly, Stella-Jones (TSX:SJ), a major player in the North American market for pressure-treated wood products, has also seen its stock price correct by about 30% from its 52-week high of $98. This dip could offer long-term investors an attractive entry point at a better valuation.
Stella-Jones serves critical sectors such as utilities, transportation, and industrial applications, with a diversified product portfolio that includes railroad ties, utility poles, and other industrial wood products. Steady demand for its products should continue to drive long-term growth in its revenue and earnings. Its ability to weather economic fluctuations and to make strategic acquisitions should enhance its resilience and market position.
Notably, Stella-Jones is a Canadian dividend knight, boasting an impressive 10-year dividend-growth rate of 14.9%. Priced at $66.74 per share at writing, analysts suggest the stock is undervalued by approximately 21%. With a combination of durable earnings, growing dividends, and growth potential, Stella-Jones is a good consideration for long-term investors.
Dollar-cost averaging: A simple strategy for volatile times
In light of ongoing market volatility driven by the trade war, a simple way to invest is through dollar-cost averaging. This strategy involves regularly investing a fixed amount of money into stocks, regardless of market conditions. By spreading out purchases over time, investors can reduce the impact of short-term market fluctuations and avoid the temptation to time the market.
Another option is to watch the technical charts and buy shares when positive signals align with strong fundamentals. This approach allows investors to take advantage of dips while still ensuring that they are investing in companies with solid growth prospects.
The Foolish investor takeaway
While the U.S.-Canada trade war creates market uncertainty, it also presents unique opportunities for long-term investors. By focusing on fundamentally strong companies like Savaria and Stella-Jones and employing strategies like dollar-cost averaging, investors can navigate volatility and position themselves for long-term success.
