2 Canadian Stocks That Look Strong Even if Growth Slows

When growth starts to slow, investors usually stop chasing excitement and start looking for dependability. That is where steady consumer businesses can shine. The strongest stocks in that kind of market often sell everyday products, keep pricing power, and generate reliable cash flow even when shoppers get pickier. In Canada, that can make food-focused companies especially appealing, because people may trim spending around the edges, but they still need groceries and trusted meal options. So, let’s take a look.

PBH

Premium Brands (TSX:PBH) looks strong here as it’s not just a simple packaged food name. It owns a wide collection of specialty food manufacturing and premium food distribution businesses across Canada and the United States. That gives it exposure to meat, sandwiches, baked goods, seafood, and foodservice channels, which creates a more diversified earnings stream than many investors realize. If growth slows, that mix can help because the company is tied to recurring food demand rather than one narrow category.

The latest numbers were solid. Premium Brands reported record fourth-quarter revenue of $1.9 billion, up 15.7% year over year, and record fourth-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $179.5 million, up 20.7%. For full-year 2025, adjusted EBITDA reached $672.2 million, up from $593.7 million a year earlier. Adjusted earnings per share (EPS) in the fourth quarter climbed to $1.29 from $1.05. That is the kind of growth investors like to see from a food business heading into a shakier backdrop.

Premium Brands also completed its acquisition of Stampede Culinary Partners in January 2026, expanding its U.S. protein platform, and its 2026 outlook calls for revenue of $9.25 billion to $9.55 billion and adjusted EBITDA of $870 million to $910 million. At the same time, the stock does not look wildly expensive for a company with that runway, trading around 13.6 times forward earnings. The risk is that integration and commodity costs can still bite, especially in protein, but this still looks like a strong defensive growth name.

MRU

Metro (TSX:MRU) operates nearly 1,000 food stores and roughly 640 pharmacies, mainly in Quebec and Ontario, under banners including Metro, Super C, Food Basics, and Jean Coutu. Discount groceries help when consumers trade down, and pharmacy sales add another layer of stability that many pure grocers do not have.

Metro stock just showed again why the market trusts it. In second-quarter fiscal 2026 results released on April 22, sales rose 4.1% year over year to $5.11 billion. Food same-store sales increased 1.8%, pharmacy same-store sales rose 5.1%, and net earnings climbed 12.1% to $246.6 million. Adjusted EPS increased 8.8% to $1.11. For the first 24 weeks of fiscal 2026, adjusted net earnings reached $485.2 million, up from $472 million a year earlier. Not flashy growth, but it’s exactly the kind of steady execution that tends to hold up well when the economy cools.

The past year also showed Metro stock still has room to grow without taking wild risks. Online food sales remained strong, up 19.8% in the latest quarter, and the company returned $222.5 million to shareholders through buybacks during the quarter. Metro stock is not cheap at roughly 17.3 times forward earnings and about 0.88 times sales, but investors usually pay a premium for a business this dependable. The main risk is simple. When a stock already carries a premium, upside can look more modest. Even so, if growth slows, Metro stock still looks like one of the safest places for Canadian investors to hide in plain sight.

Bottom line

If I wanted two Canadian stocks that could keep their footing even in a slower-growth market, I would be comfortable with both of these. Premium Brands brings a more ambitious food growth story with some real execution behind it. Metro stock brings classic grocery and pharmacy stability with impressive consistency. Plus, both offer income through dividends even with a $7,000 investment.

One offers a little more upside, the other offers a little more calm, and together, these stocks look like a smart pair for uncertain times.

The post 2 Canadian Stocks That Look Strong Even if Growth Slows appeared first on The Motley Fool Canada.

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More reading

• 2 Canadian Stocks to Buy Before Economic Fears Fade
• A Nearly Ideal Monthly-Paying REIT With a 5.5% Yield
• TSX Investors: 3 Stocks That Look Built for Uncertain Times
• 3 Canadian Dividend Stocks to Own if Markets Stay Choppy
• 4 TSX Stocks to Buy if the Economy Slows but Doesn’t Break

Fool contributor Amy Legate-Wolfe 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.