Navigating the stock market can feel a bit like riding a rollercoaster, especially when big global events like tariffs start to shake things up. However, these periods of uncertainty can sometimes open up interesting opportunities for investors to pick up shares of good companies at prices that look attractive. Recent tariffs have been put in place by U.S. president Donald Trump, affecting various industries. Thus, Canadian investors might want to think about Canadian stocks that are well-positioned to handle these challenges and maybe even do quite well. Let’s take a look at two Canadian stocks that might be worth considering during these somewhat turbulent times.
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Agnico
First up is Agnico Eagle Mines (TSX:AEM). When the economic waters get a little choppy, gold often tends to shine as a safe place for investors to put their money. This can lead to more demand for gold and, consequently, higher gold prices. Agnico Eagle Mines, which is a major Canadian gold producer, could be in a good spot to benefit. It has a diverse set of mining operations located in Canada, Finland, and Mexico. This geographical spread could allow it to really take advantage if gold prices continue to climb.
Looking at the most recent earnings report, Agnico Eagle announced a quarterly net income of US$205 million. This works out to US$0.85 per share. That’s a pretty significant jump compared to how it was doing the year before. Canadian stock said this growth was mainly due to the production of more gold. Plus, there is also the fact that market conditions for gold were favourable. With gold prices getting close to record highs, Agnico Eagle’s strong performance really highlights its potential to be a solid investment, even when the market feels a bit shaky.
Dollarama
The second Canadian stock to consider is Dollarama (TSX:DOL). Often, when the economy takes a downturn, or there’s a lot of uncertainty around trade, consumers tend to become more focused on getting good value for their money. Dollarama, as Canada’s leading discount retailer, is perfectly positioned to meet this demand. It offers a wide variety of products at low, fixed price points. This has made it a popular shopping destination for folks who are keeping a close eye on their budgets.
In the latest financial results, Dollarama reported a 12% increase in sales, bringing total sales for the quarter up to $1.1 billion. What’s also impressive is that comparable store sales grew by 7.9%. This indicates that there’s strong and growing demand from customers. The Canadian stock’s net earnings also saw a rise, reaching $161.9 million, or $0.52 per diluted share, up from $146.1 million the year before. This consistent growth really shows Dollarama’s ability to attract and keep customers coming back, even when the economic climate is a bit challenging.
Foolish takeaway
Investing when the market is experiencing a dip requires a thoughtful approach. It’s often wise to focus on companies that have strong underlying businesses and the ability to weather any economic storms that might come their way. Agnico Eagle Mines and Dollarama seem to exemplify this kind of resilience. Agnico Eagle’s strong position in the gold market can act as a hedge against economic instability. Meanwhile, Dollarama’s business model, which focuses on providing value to consumers, tends to align well with how people behave when the economy is uncertain.
Allocating $2,000 Canadian between these two stocks could provide a balanced approach, giving you exposure to both a sector that tends to do well in uncertain times (gold) and a sector that caters to consumers who are looking for value (discount retail). As always, it’s really important to do your own thorough research and think about your personal financial goals and how much risk you’re comfortable taking before you make any investment decisions. While market volatility can sometimes feel a bit unsettling, it can also present opportunities to invest in companies that are well-positioned for long-term success.
