Recession worries are starting to creep back into the market, and investors are taking notice. In Canada, a mix of global trade uncertainty, persistent inflation, and interest rate hesitation has led to renewed interest in so-called “recession stocks.” These are the companies that don’t just survive tough economic times. They often thrive. And with April showing weakness across the TSX, it may be the perfect time to buy the dip.
The S&P/TSX Composite Index has dipped from recent highs as gold prices climb, inflation remains sticky, and the U.S. Federal Reserve delays rate cuts. Consumer spending is also showing signs of fatigue, and economic data has pointed to slower growth ahead. That kind of environment sends investors scrambling for safety – specifically, into sectors like gold, utilities, and consumer staples. These tend to hold their value even when the economy slows. So, where should investors hide out?
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Consider Agnico
One company standing strong is Agnico Eagle Mines (TSX:AEM). It has a market cap of about $36.8 billion and operates gold mines across Canada, Finland, and Mexico. One of the biggest gold producers in the world, this stock often gains momentum when investors fear a downturn.
So far, gold prices have surged in 2024 and into 2025, driven by demand from central banks and nervous investors. Gold climbed over 33% last year, hitting around US$2,750 per ounce, and recently hit an all-time high of US$3,100. But interestingly, gold mining stocks haven’t kept pace, which makes Agnico Eagle look all the more attractive right now. It has a solid portfolio of producing mines, expanding reserves, and solid financials. Traits that make it a classic recession-proof pick.
In its most recent earnings, Agnico Eagle reported fourth-quarter earnings per share (EPS) of $1.26, slightly below analyst expectations of $1.70. Even so, the company pulled in $8.3 billion in revenue for the year and posted net income of $1.9 billion. It ended 2024 with record gold production and free cash flow, along with further reductions in debt. That’s a rare mix of growth and financial stability in today’s market.
Looking ahead
Production-wise, Agnico Eagle’s operations are firing on all cylinders. The Detour Lake mine had a fourth-quarter mill throughput of 71,826 tonnes per day, even with unplanned power outages. The Odyssey Mine is also ramping up, hitting a mining rate of 3,500 tonnes per day in October 2023 and contributing 20,000 ounces of gold in one quarter. These production metrics back up the company’s strong revenue numbers.
Agnico also has a growing pipeline. At the Upper Beaver project, reserves stand at 2.8 million ounces of gold and 54,930 tonnes of copper. Across its operations, Agnico has total proven and probable reserves of 54.3 million ounces of gold, up from 2023. That kind of reserve growth is important for long-term sustainability and valuation.
Beyond the numbers, there’s another reason to look at Agnico Eagle this April. It’s simply cheaper than it was a few months ago. Despite gold prices hitting new highs, Agnico’s stock hasn’t fully followed suit. That’s given investors a rare opportunity to grab a recession-proof stock at a discount. The next earnings report is due on April 24, and analysts are forecasting EPS of $1.17, which would be a 105% increase year-over-year.
Bottom line
When markets get shaky, stocks like Agnico Eagle tend to shine. It offers stability through gold exposure, growth through reserves and production, and strong fundamentals with consistent free cash flow. So if you’re looking for something solid to add to your portfolio while the market stumbles, this could be a golden moment to buy the dip.
