Bear Market Bargains Emerge as Recession Stocks Return

If you want a deal, then go to the best stocks during a recession market dip.

Navigating the ups and downs of the stock market can feel like a rollercoaster. When the market takes a downward turn, often referred to as a bear market, it might seem like a worrying time for investors. However, these periods can also present some interesting opportunities. As stock prices fall, some companies that are fundamentally strong can become available at more attractive prices. These potential bargains are worth a closer look for those thinking about long-term investments. Let’s have a peek at a few Canadian companies listed on the TSX that seem to be showing some promise lately.

A bull and bear face off.

Source: Getty Images

Basic Materials

Agnico Eagle Mines (TSX: AEM) is a well-known name in the gold mining business. Looking back at the third quarter of 2024, it reported a significant jump in earnings, growing by 165%. The revenue also saw a healthy increase of 31%, reaching $2.16 billion. Experts who follow the company believe its earnings per share (EPS) could climb by another 114% in the current quarter.

If we look at how its stock has performed, it has gone up by 29% since the beginning of March 2025 and a notable 80.6% over the past year. This performance has been better than the broader S&P 500 index. With the price of gold staying at a good level and even reaching records, Agnico’s focus on running high-quality and lower-risk mining operations seems to put it in a good position to keep doing well.

Another company to consider is Nutrien (TSX: NTR), which is a big player in the agriculture industry. In the third quarter of 2024, it faced some headwinds. Its net earnings were $25 million, or $0.04 per share. This was quite a drop compared to the same period in 2023, when it reported $1.6 billion, or $2.94 per share. The main reasons for this decrease were lower prices for the nutrients it sells for crops and a reduction in the amount it sold. Despite these challenges, Nutrien has strategies in place and a strong position in the market, suggesting that it has the potential to bounce back as market conditions improve.

Banks

Royal Bank of Canada (TSX: RY), which is the largest bank in the country, announced its profits for the fourth quarter of 2024 and were better than what analysts were expecting. A couple of things contributed to this positive result. One was its acquisition of HSBC’s Canadian operations, and the other was a strong performance from its wealth management division.

Its adjusted net income increased by a solid 17.7% to reach $4.44 billion, or $3.07 per share. Even with these gains, RBC decided to increase the amount of money it set aside for loans that might not be repaid. This provision for credit losses went up to $840 million, indicating that the bank is aware of the financial difficulties some consumers are currently facing.

EQB (TSX: EQB), which operates under the name Equitable Bank, provides banking services as well. It has also been highlighted as a discounted growth stock with the possibility of significant gains. Its focus on digital banking solutions aligns with how more and more customers prefer to manage their finances. This suggests a positive outlook for the company as it caters to these evolving consumer preferences.

Bottom line

When the stock market is in a bear market, it’s important to be careful and really look into the companies you are considering investing in. Focusing on businesses that have strong underlying fundamentals and a clear strategic direction is key. The companies mentioned here have shown some resilience and potential for growth, even with the recent difficulties in the market. As always, it’s crucial to do your own thorough research and think about your personal investment goals and how much risk you are comfortable with before making any investment decisions.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends EQB and Nutrien. The Motley Fool has a disclosure policy.

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