3 Stocks I’m Continuing to Buy Despite the Market Sell-Off

Market sell-offs can feel ugly, but also tend to separate the sturdy businesses from the story stocks. When I keep buying through a rough patch, I want companies with real earnings, healthy balance sheets, and a business model that can still work if the economy stays choppy for a while. That usually means steady cash flow, a sensible valuation, and at least one clear reason growth can keep showing up even when investors get nervous. So, let’s look at three on the TSX today.

PSI

Pason Systems (TSX:PSI) fits this kind of market because it is not a flashy energy stock. It’s the quieter type that sells critical drilling data and technology to oil and gas producers. That makes it useful when producers still need efficiency, even if drilling activity gets uneven. In its fourth quarter of 2025, Pason reported revenue of $108.7 million, up 1% year over year, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $38.1 million. For the full year of 2025, Pason generated $153.4 million in adjusted EBITDA and declared another quarterly dividend.

There is also a valuation case here. Pason’s market cap sits at about $1.1 billion at writing, with a forward price-to-earnings (P/E) around 20. That’s reasonable for a company with a strong balance sheet, a low beta, and expanding exposure beyond drilling through solar and energy storage controls. The risk is simple enough. If North American drilling weakens more than expected, growth can stall. Even so, for a sell-off buy, this one looks steadier than many investors might assume.

RCH

Richelieu Hardware (TSX:RCH) is a very different pick, but that’s part of the appeal. It distributes specialty hardware and related products used in cabinetry, furniture, renovation, and building projects across Canada and the United States. That’s not the sort of business that dominates dinner-table conversation, but it’s exactly the kind of steady operator that can keep compounding quietly. In its first quarter of 2026, Richelieu posted sales of $463.6 million, up 5%, with EBITDA of $43.2 million and diluted earnings per share (EPS) of $0.26. It also kept pushing its acquisition strategy, including three new U.S. distribution centres and two signed letters of intent in Canada.

Its U.S. business stayed especially strong, with sales up 11.3% in U.S. dollars, and management kept talking up specialized demand, renovation activity, and more acquisition opportunities in a fragmented market. The stock is not exactly cheap, with a market cap of around $2.21 billion to $2.2 billion and a P/E of about 25. Still, good compounders rarely look dirt cheap for long. The main risk is that housing or renovation demand could soften, but this is still the sort of business I would rather own than fear during a pullback.

CGI

CGI (TSX:GIB.A) is one of Canada’s most reliable tech giants. In its second quarter of fiscal 2026, CGI stock reported revenue of $4.16 billion, up 3.3% year over year, or 1.6% in constant currency. Diluted EPS rose 10.6% to $2.09, while adjusted diluted EPS climbed 7.1% to $2.27. Adjusted earnings before interest and taxes (EBIT) reached $691.6 million, up 3.9%, with a solid margin of 16.6%. Still, shares dropped after the release, as investors focused on the modest revenue growth and signs of softer demand in areas such as U.S. federal work and financial services.

CGI stock also looks fairly reasonable on valuation for a business of this quality. It holds a market cap of about $19.3 billion and a forward P/E near 12, which feels pretty restrained for a company with global scale, sticky client relationships, and steady profit growth. Bookings reached $4.31 billion in the quarter, giving it a book-to-bill ratio of 103.8%, while backlog sat at $31.5 billion. That gives investors some comfort about future revenue.

Bottom line

If I am continuing to buy while the market wobbles, I want businesses that can keep earning, keep growing, and keep me from regretting every red day on the screen. Pason offers energy-linked cash flow without being too wild. Richelieu offers quiet execution and acquisition-driven growth. CGI stock offers blue-chip tech stability at a reasonable multiple. That’s a pretty good trio for investors who want to stay calm and keep buying when the market is doing its best to scare them.

The post 3 Stocks I’m Continuing to Buy Despite the Market Sell-Off appeared first on The Motley Fool Canada.

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More reading

• TSX Today: What to Watch for in Stocks on Thursday, April 30
• 3 TSX Stocks I’d Snap Up on Any Dip Right Now
• 3 Canadian Stocks I Loaded Up on for Long-Term Wealth
• TSX Today: What to Watch for in Stocks on Friday, April 10

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends CGI, Pason Systems, and Richelieu Hardware. The Motley Fool has a disclosure policy.