2 TSX Stocks I’d Buy if Markets Slide Again

Markets have looked a bit jumpy lately. Canada’s main index has slipped on days when tech and commodities sag, even while pockets like banks and utilities hold up. That kind of chop can feel annoying, but it also creates opportunity. A broad slide tends to punish the good with the bad. It hands you better entry points on businesses with steady demand, repeatable cash flow, and the kind of pricing power that does not vanish when headlines get loud.

WCN

Waste Connections (TSX:WCN) fits that “buy the dip” mood better than most. It runs solid waste collection, transfer, recycling, and disposal across North America. The last year, it kept acquiring tuck-in assets, which adds density to routes and lifts margins over time. In its 2025 update, the TSX stock said it completed acquisitions with about $330 million in annualized revenue and returned a record $839.3 million to shareholders. It also just declared an annual dividend of $1.97.

The freshest numbers give you the real takeaway. In full-year 2025, Waste Connections reported revenue of $9.5 billion and net income of $1.1 billion, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $3.1 billion. For 2026, management guided to revenue of $9.9 billion to $9.95 billion and adjusted EBITDA of $3.3 billion to $3.325 billion, plus adjusted free cash flow of $1.40 billion to $1.45 billion.

Valuation sits as the main compromise. The TSX stock currently trades at 66 times earnings at writing. That is not bargain-bin pricing. But quality rarely looks cheap on a screen. If markets slide again, I would rather pay up a bit for a business that can keep compounding through almost any backdrop than chase a “cheap” cyclical name that needs the perfect economy.

MRU

Metro (TSX:MRU) sells what people buy even when budgets tighten: groceries and pharmacy essentials. Recent news has stayed steady and very on-brand for Metro. It focused on small, repeatable wins. Same-store sales, private label, and operational discipline drive the story more than flashy expansion. Its first-quarter fiscal 2026 update showed food same-store sales up 1.6%, and up 1.9% when adjusting for the Christmas shift, with pharmacy same-store sales up 3.9%. Those are not moonshot numbers. They are the kind that quietly add up over years.

Earnings also looked like a classic “steady operator” quarter. In the first quarter of fiscal 2026, Metro posted sales of $5.3 billion, up 3.3%. Net earnings came in at $226.3 million, down 12.8%, while adjusted net earnings rose to $248.7 million, up 1.3%. Fully diluted earnings per share (EPS) was $1.05, and adjusted fully diluted EPS $1.16. The core business kept improving, but specific items weighed on reported profits. In a market slide, that difference often gets lost in the panic, which can create your entry.

Metro’s valuation looks more reasonable than a lot of “defensive” names. The TSX stock currently trades at 21 times earnings. That feels fair for a business with steady demand and solid execution, even if it will not deliver fireworks. The risk is that food inflation cools and competition stays intense, which can cap margin expansion. The reward is simple: it can keep compounding while you ignore the noise.

Bottom line

If markets slide again, both TSX stocks could still be buys, but for slightly different personalities. Waste Connections suits investors who want a long runway, strong cash flow, and a company that can grow even when the economy feels lumpy, though you do pay a premium for that comfort. Metro suits investors who want a steadier Canadian essential with clean, repeatable execution and a valuation that does not feel stretched, though it may never look “cheap” in a true grocery war. Plus, here’s what both TSX stocks could bring in through dividends alone from $7,000.

If you can handle a dip without flinching, these are the kinds of names that can turn a market slide into a long-term gift.