If there’s anything investors want right now, it’s stability. Especially from their TSX stocks. That can be incredibly hard to find these days, given the way the market has been performing.
As of writing, the TSX is currently down by about 10%. Now that’s actually an improvement, but no one can see into the future. In fact, with a recession potentially coming next here, things could get worse before they get better.
But not from every stock.While many TSX stocks will continue to fall, there are some that can protect you in this poor market environment. These are stocks that can continue to do well even if we fall into a recession. Those are the ones I’ll focus on today.
Dollarama (TSX:DOL) doesn’t just do well outside a recession, it even does well during a recession. This comes from its cheap offerings at a great price, and retail locations stretched out across the country. Now, the company is investing in new locations outside of Canada as well. This gives you a solid opportunity to make cash not just during the recession, but for years to come.
Dollarama stock in fact has done well for years, with the only huge downturn coming from the pandemic. Even then, it rebounded quite quickly given that it also offers essential items. So should we go through a pandemic again (boy, I hope not), you’ll still be protected with Dollarama stock.
And as Dollarama stock is one of the TSX stocks that has been around for over a decade, you have plenty of growth to look back on. Year to date, that growth is up by 31%! Over the last decade, it’s up 717%, which comes to a compound annual growth rate (CAGR) of 23.4%.
Another company you can buy without any hesitation is CGI Group (TSX:GIB.A)(NYSE:GIB). CGI Group is a solid choice because the tech stock offers a low share price compared with competitor Constellation Software, but has the same business model. It buys up software companies, refurbishes them, and rakes in the newly found revenue.
This has been working for years, with the tech stock proving itself time and time again. Yet right now, you can still get a deal on CGI stock. Shares are down just 1% year to date, which provides you with some protection. It trades near value territory at just 18.5 times earnings, and again it has decades of historic growth behind it.
How much? CGI Group has been around for over two decades. In that time, CGI stock has grown 1,444% for a CAGR of 14.7%. That’s during several downturns and the Great Recession, with the tech stock remaining on top of its game!
If you’re looking for a deal and don’t know where to turn, these two TSX stocks are the ones to add to your watchlist. Each provides you with exposure to strong industries, but they also have stable business models you can lock into. Further, they both continue to prove themselves worthy even as the TSX today remains down. So definitely consider them not just now, but for the next several years.