2 Canadian Stocks to Buy When Everyone’s Nervous

When investors feel nervous, it makes sense to lean toward businesses that either hold up when the economy gets shaky or benefit from big long-term trends that don’t vanish just from a few moody weeks. Therefore, investors should look for steady cash flow, durable demand, manageable debt, and a reason the company could still grow even if sentiment stays sour. In other words, this is not the moment for wishful thinking, but for quality.

CU

Canadian Utilities (TSX:CU) fits that mood well. It’s a diversified energy infrastructure company with regulated electricity and natural gas operations, plus exposure to cleaner fuels, storage, and Australian utility assets. That regulated base tends to produce steadier earnings than cyclical businesses.

The past year gave investors a few reasons to keep watching. In August 2025, ATCO’s Yellowhead Pipeline Project won a key Alberta regulatory approval. The project carries an estimated investment of about $2.8 billion and is expected to deliver more than 1.1 billion cubic feet of natural gas per day, with construction set to start in 2026. That’s a serious growth project, not a tiny side hustle.

The earnings story looks solid, too. Canadian Utilities stock reported 2025 adjusted earnings of $658 million, or $2.42 per share, and spent $1.6 billion in capital expenditures during the year, with 94% going into regulated utilities. It also said its regulated utilities had a consolidated mid-year rate base of $16.6 billion in 2025, with a five-year rate base growth rate of 6.9% expected through 2030.

Canadian Utilities stock now trades at 329 times earnings, so it’s clearly not a bargain. Yet for a defensive stock with a long dividend history, a yield at 3.7%, and visible utility growth, it looks like a sensible place to hide when people get twitchy.

CCO

Then there’s Cameco (TSX:CCO), which is a very different kind of “nervous market” stock. Cameco stock is one of the biggest uranium companies in the world, giving investors exposure to the nuclear theme without needing to guess which reactor designer will win. Global demand for reliable electricity keeps rising, and nuclear has moved back into the conversation in a big way. In fact, growing reactor demand and new construction tightened the uranium market and set the stage for a rally in 2026.

Recent news only strengthened that case. Cameco stock’s Westinghouse investment kept adding value in 2025, with management saying Westinghouse adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 30% over 2024. Furthermore, Canada planned to release a new electricity and nuclear strategy, which adds another layer of support for the sector at home. This is one of those rare stories where policy, demand, and investor interest all seem to be moving in the same direction.

The numbers are strong, even if the valuation is not exactly shy. Cameco stock’s 2025 annual report showed revenue of $3.458 billion. Net earnings and adjusted net earnings both improved sharply from 2024, while adjusted EBITDA rose to about $1.9 billion. Cameco stock finished 2025 with $1.2 billion in cash and short-term investments against $1 billion in total debt, and it produced 21 million pounds of uranium, above its revised guidance.

For 2026, it expects production of 19.5 million to 21.5 million pounds and deliveries of 29 million to 32 million pounds. The catch is valuation as well. It trades at 118 times earnings, with a low 0.15% yield. That’s rich. Still, when investors are nervous about inflation, power demand, and global supply, a premium business tied to nuclear fuel can still make sense.

Bottom line

So, if everyone is nervous, these two stocks work for different reasons. Canadian Utilities stock brings steadiness, income, and visible regulated growth. Cameco stock brings exposure to one of the market’s strongest long-term energy themes. One stock can help you sleep at night. The other can give your portfolio some punch. In a shaky market, that is a pretty nice pair.

The post 2 Canadian Stocks to Buy When Everyone’s Nervous appeared first on The Motley Fool Canada.

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More reading

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• 3 Dividend Stocks That Look Worth Adding More Of
• The Ultimate Dividend Stock to Buy With $1,000 Right Now
• 5 TSX Stocks to Buy for a Calm, Boring, Winning Portfolio
• 5 TSX Dividend Stocks With Solid Yields Built for Steady Cash Flow in Any Market

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.