This stock has been “absolutely smashed” but could bounce back, Keith Richards says

ValueTrend Wealth Management president and chief portfolio manager Keith Richards says WSP Global (WSP Global Stock Quote, Chart, News, Analysts, Financials TSX:WSP) could be approaching a rebound after a sharp decline in its share price.

Speaking on BNN Bloomberg’s Market Call on Oct. 20, Richards said WSP is among several beaten-down stocks he is watching for signs of recovery.

“This is a stock that has been absolutely smashed,” Richards said. “We just noticed that it made a bottom, and it looks to be bouncing off that bottom.”

He cautioned that it remains too early to determine whether the stock has established a sustainable recovery.

WSP, the Montreal-based engineering and professional services firm, has lost 39.7% over the past 12 months.

Richards said ValueTrend has taken a small initial position, representing approximately 1% to 2% of its portfolio, rather than committing significant capital before the stock confirms a reversal. “We’re just dripping in. And if it fails here, we’re out,” he said.

The investor believes a sustained rebound could take WSP shares into the low $200s, while an end to the broader downtrend could support a longer holding period. “If it starts to bounce, we’re going to trade it,” he said. “But if this downtrend ends, then we’d also be encouraged to hold it longer.”

He described WSP as a potential tax-loss-selling victim that could become attractive once selling pressure subsides. “We just look at it as a tax-loss-selling victim that will probably become attractive,” Richards said, adding that his colleague Craig sees fundamental upside.

Separately, WSP announced earlier this month that it has agreed to acquire GCM Corpo, a Canadian engineering consulting firm serving the energy, industrial and mining sectors. The proposed acquisition would add approximately 600 professionals and expand WSP’s capabilities in process engineering, industrial digitalization, cybersecurity and project management.

WSP CEO Alexandre L’Heureux said the transaction would strengthen the company’s position in Canada’s energy and industrial markets. “This transaction reflects our strong confidence in Canada’s long-term potential as a leader in the energy, industrial and mining sectors,” L’Heureux said.

The acquisition remains subject to regulatory approval and is expected to close in Q4 2026.

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