3 Canadian Stocks That Could Outperform if Growth Stays Soft

Soft growth doesn’t mean investors need to hide in cash. It usually means they need companies with demand that can hold up even when households and businesses get more careful. The best stocks in that kind of market often serve essential needs, benefit from long-term trends, or offer steady income while investors wait for confidence to return. Therefore, investors don’t need a roaring economy to make sense, but durable demand, strong pricing power, and enough financial strength to keep moving forward.

CCO

Cameco (TSX:CCO) is one of Canada’s biggest uranium stories, and it fits because nuclear power has moved from a niche idea to a global energy priority. The company produces uranium and provides nuclear fuel services, while its stake in Westinghouse gives it exposure to the wider nuclear reactor supply chain. Over the last year, the main story was simple: countries kept looking for reliable, low-carbon base load power, and uranium stayed central to that conversation. Cameco stock also entered 2026 with a stronger balance sheet, ending 2025 with $1.2 billion in cash and short-term investments against $1 billion in total debt.

For 2025, revenue rose 11% to $3.48 billion, while net earnings jumped to $590 million from $172 million. Diluted earnings per share (EPS) climbed to $1.35 from $0.39, and adjusted earnings per share reached $1.44. That growth helps explain why investors keep chasing the stock, but valuation brings the risk. Cameco stock recently traded at a market cap near $70 billion and a trailing price-to-earnings (P/E) ratio above 120. So this isn’t a cheap stock. Still, if growth stays soft, long-term energy security spending could keep nuclear demand strong, and Cameco stock remains one of the clearest Canadian ways to play it.

CRRX

CareRx (TSX:CRRX) provides pharmacy services to seniors living in long-term care, retirement homes, assisted living facilities, and other congregate care settings. That gives it steady, recurring demand tied to aging demographics rather than consumer confidence. Over the last year, CareRx added more beds, improved operations, and started paying a dividend.

In 2025, revenue rose to $370.2 million from $366.7 million, while fourth-quarter revenue climbed to $96.1 million from $92.2 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $32.9 million for the year, and net income reached $26.1 million, compared with a loss in 2024. CareRx also declared a $0.02-per-share quarterly dividend for the first quarter of 2026. Valuation looks more grounded than many growth names, with a market cap near $232 million, a P/E ratio around nine, and a dividend yield near 2.2%. The risk is scale. Smaller companies can feel bumps harder, and CareRx still needs steady execution. But in a soft-growth market, healthcare demand gives it a useful cushion.

REI

RioCan (TSX:REI.UN) is another stock that could hold up if growth stays sluggish. The real estate investment trust (REIT) owns retail-focused properties, many anchored by grocery, pharmacy, necessity, and service-based tenants. That makes it less exposed to the weakest parts of discretionary spending. Over the last year, RioCan also leaned into strong leasing demand, unit buybacks, and balance-sheet improvement. Retail real estate has quietly regained appeal because quality space in good locations remains hard to replace.

In 2025, RioCan reported diluted funds from operations (FFO) of $1.87 per unit, up from $1.78 in 2024. Commercial same-property net operating income grew 3.6%, retail committed occupancy sat at 98.5%, and the funds from operations payout ratio was 61.6%. RioCan also guided for 2026 core FFO per unit of $1.60 to $1.62. With a recent yield of around 5.4%, it offers meaningful income while investors wait for rate cuts or better growth. The main risks are interest costs, debt, and any pullback in tenant demand. Even so, its necessity-based portfolio gives it a sturdy base.

Bottom line

Cameco stock, CareRx, and RioCan all offer different ways to handle a softer economy. Cameco stock gives investors long-term nuclear growth. CareRx brings healthcare demand and improves profitability. RioCan adds monthly real estate income from necessity-focused retail. None is risk-free, but each has a clear reason to work even if the economy keeps crawling instead of sprinting.

The post 3 Canadian Stocks That Could Outperform if Growth Stays Soft appeared first on The Motley Fool Canada.

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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.