Got Patience? 3 Turnaround Growth Stocks for Steady Investors

Patient investors often win the race over the long term, and that’s something I think most investors can inherently understand. Those who are able to buy stocks when they’re cheap (often after a major selloff) and hold until a turnaround transpires can generate massive long-term wealth.

That said, the reality is that few investors are as patient as they may think they are. Engaging in such a strategy requires time and capital, both of which are often in short supply.

That said, for those who would like to give this strategy a shot, here are three Canadian turnaround growth stocks that I think are worth considering right now.

Algonquin Power

Algonquin Power (TSX:AQN) is a stock I haven’t covered in some time. Much of that has to do with this utility giant’s fall from grace, in gutting its dividend in the past (a key reason I previously invested in this company to begin with).

That said, the company has been doing some spring cleaning, to say the least. Algonquin’s management team has focused on shedding its non-core renewables for $2.1 billion and zeroing in on regulated utilities serving 3.17 million customers. That’s smart streamlining that I think will boost stability over the long term.

Notably, the company’s results are also improving. In its first quarter of 2025, Algonquin’s revenue jumped 7.1% to $692.4 million on higher rates and weather. Impressively, adjusted earnings soared even higher (39.3% to $111.6 million), providing a solid base for the utility provider’s current yield of 36.8%.

With a sustainable payout ratio and a valuation multiple that finally makes sense, Algonquin is one utility company that’s back on my radar.

Bombardier

Bombardier (TSX:BBD.B) has been another stock I’ve been bearish on in the past. However, the company’s existing turnaround efforts have gone smashingly well, with the company surging past its 2025 targets with $9.55 billion in revenue (up 10%), adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) up 15% to $1.56 billion at 16.3% margins, and free cash flow exploding to $1.07 billion.

Importantly, the plane maker’s leverage ratios have improved, plunging to 1.9 from 2.9 times via $900 million debt cuts. These cuts have bolstered an already-impressive $17.5 billion backlog, with $2.5 billion in liquidity shoring up its balance sheet.

With 2026 guidance for over $10 billion in revenue driven by +157 aircraft deliveries (and $600 million-$1 billion free cash flow), this aviation powerhouse is worth buying here in my view.

goeasy

Finally, I’m going to highlight another company I’ve been bearish on in the past. goeasy (TSX:GSY) is a leading Canadian provider of subprime lending as well as buy now, pay later services and other related financial products for consumers looking to traverse this inflationary world we live in.

Subprime lending activity has exploded of late, propelling the company’s share price higher this past summer. However, a recent drawdown tied to macro concerns around the domestic and global landscape for such services has taken this stock lower.

While the company has posted an impressive 22.7% five-year revenue compounded annual growth rate with earnings keeping pace via smart leverage, there’s a lot to like about the company’s previous turnarounds. Other strong fundamental metrics include return on equity (22.5%), return on assets (nearly 5%) and an earnings before interest and taxes margin approaching 40%.

These key metrics signal to me that goeasy stock at roughly eight times forward earnings with a reasonable yield is one that many investors may be missing out on. This is a more speculative pick, and one I think investors have to be careful with. But for those expecting a continuation of this bull market rally, this is one to put on the watch list after its recent decline, in my view.

The post Got Patience? 3 Turnaround Growth Stocks for Steady Investors appeared first on The Motley Fool Canada.

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