When the stock market gets rocky, investors start looking for safer places to put their money. Some safe stocks hold up better than others during downturns, thanks to steady earnings, strong market position, and the essential nature of the business. The right safe-haven stock doesn’t just help protect a portfolio but can also provide long-term gains when the market recovers. Right now, three TSX stocks stand out as solid choices for defensive investing. Those are Waste Connections (TSX:WCN), Cameco (TSX:CCO), and Agnico Eagle Mines (TSX:AEM).
Waste Connections
Waste Connections is a waste management company that operates across North America. It collects, transfers, and disposes of waste while also handling recycling. No matter what the economy does, people and businesses still need waste services, making this stock a reliable pick when markets turn volatile.
Waste Connections has seen steady revenue growth and continues to expand through acquisitions. Its latest earnings report showed revenue at $2.11 billion, slightly above analyst expectations, with an earnings per share (EPS) of $1.23. The safe stock has a market cap of about $68.9 billion, proving its strength in the sector.
Over the past decade, it has consistently generated strong cash flow, allowing it to reinvest in growth and return capital to shareholders through dividends and share buybacks. Its ability to maintain steady margins despite economic uncertainty makes it a compelling defensive play.
Cameco
Cameco is another safe bet but in a different way. It is one of the largest uranium producers in the world. While energy stocks can be volatile, nuclear power is gaining importance as countries look for cleaner energy alternatives. That puts Cameco in a strong position for future growth.
In its latest earnings report, Cameco posted revenue of $945 million, exceeding analyst expectations, while its EPS came in at $0.43. It currently has a market cap of approximately $27 billion. Cameco has also benefited from long-term contracts with utility companies, reducing its exposure to short-term price fluctuations in uranium.
With growing global demand for nuclear power, Cameco has been expanding its production capacity and securing new supply agreements. This focus on long-term stability and rising demand makes it an ideal stock for uncertain markets.
Agnico Eagle
Agnico Eagle Mines is a go-to choice for investors looking for a hedge against economic instability. Gold has long been a safe-haven asset, and gold mining companies tend to do well when uncertainty increases. Agnico Eagle operates gold mines in Canada, Finland, and Mexico, making it one of the biggest names in the industry.
The safe stock recently reported revenue of $1.84 billion, meeting analyst expectations, with an EPS of $0.75. It has a market cap of around $35 billion. What sets Agnico Eagle apart from other gold miners is its strong balance sheet and disciplined approach to capital allocation.
The safe stock focuses on low-cost production and has a history of maintaining stable dividend payments even when gold prices fluctuate. Investors looking for both stability and upside potential in times of economic uncertainty often turn to Agnico Eagle as a reliable gold investment.
Bottom line
Market corrections can be nerve-wracking but also present opportunities. Defensive stocks like these can help investors weather the storm while positioning themselves for future growth. Waste Connections, Cameco, and Agnico Eagle Mines have proven an ability to perform well through different economic cycles.
For anyone looking to protect their investments while still seeing potential upside, these safe stocks are worth considering. Holding a mix of essential services, clean energy, and precious metals in a portfolio provides diversification, reducing overall risk — all while maintaining the opportunity for long-term gains. Investors who take advantage of these safe-haven stocks during a correction may find themselves in a much stronger financial position when the market eventually rebounds.
