3 Canadian Stocks That Could Thrive Even if the Economy Slows

If the TSX hits a softer patch, these three stocks stand out for durable demand, long-cycle work, or exposure to rate-sensitive transaction recovery.

Key Points
  • Quebecor sells essential telecom services and is growing wireless lines through Freedom, though competition can pressure pricing.
  • Aecon has record revenue and backlog tied to utilities and infrastructure that still get built, even in slower growth.
  • Real Matters is benefiting from improving mortgage and title volumes and could gain more if rates fall, but it’s volatile.

A slowing economy doesn’t mean every stock has to slow with it. The better places to hide usually are businesses with sticky demand, recurring revenue, or services customers don’t want to cut even when budgets get tighter. That can mean telecom, infrastructure, or companies tied to essential transactions rather than optional spending. If the TSX hits a softer patch, investors should look for stocks with durable cash flow, solid execution, and enough growth left to keep the story moving. So let’s look at a few to consider on the TSX today.

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Source: Getty Images

QBR

Quebecor (TSX: QBR.B) looks built for this kind of backdrop. It owns Videotron and Freedom Mobile, with direct exposure to wireless, internet, and other telecom services that people keep paying for even when the economy gets shaky. Over the last year, the company kept pushing its national expansion through Freedom, including plans to launch a Manitoba network in 2026. That keeps the growth story alive while the core telecom business stays defensive.

The latest numbers were steady in the right way. Quebecor reported fourth-quarter 2025 revenue up 3.2%, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) up 3.6%, and free cash flow up 21.9%. For full-year 2025, telecommunications revenue rose 0.3%, mobile revenue climbed 6.7%, and the company added 311,000 mobile lines – the best growth rate in the Canadian industry according to management. Shares recently traded around a trailing price-to-earnings (P/E) of about 15.8. That’s not too demanding for a telecom with growing wireless scale. The risk is that telecom is competitive, and pricing pressure can nibble at margins.

ARE

Aecon (TSX: ARE) isn’t recession-proof in the purest sense, but it works in end markets that still need to get built, especially transit, utilities, nuclear, and civil infrastructure. That gives it more resilience than a typical cyclical construction stock. Over the last year, Aecon completed the Darlington Nuclear Refurbishment project ahead of schedule and under budget, acquired K.P.C. Power Electrical, and expanded its U.S. utility capabilities through Duna Services and KNX Utility Services. That’s a busy year, and it points to a company leaning into long-cycle demand.

The earnings backed that up. Aecon reported record full-year 2025 revenue of $5.4 billion and said it expects 2026 revenue to exceed 2025 levels thanks to its record backlog and positioning in stronger demand areas. It also raised its quarterly dividend to $0.1925 per share and now sits at about a 2.8% yield. That’s the kind of signal investors like when the economy looks less certain. Aecon fits because governments and utilities don’t stop needing power, transportation, and grid work just because growth cools. The valuation looks harder to pin down cleanly than with a utility or bank, but the bigger point is that backlog and project mix matter more here than a simple headline multiple.

REAL

Real Matters (TSX: REAL) runs network management platforms for mortgage lending and insurance, mostly in the United States. That might not sound thrilling at first glance, but it gives REAL stock exposure to refinancing, appraisals, and title activity that can actually improve if slower growth pushes rates lower. Over the last year, it kept winning new clients and channels, which matters a lot for a business that scales with volume.

Its latest quarter showed some real momentum. In fiscal Q1 2026, revenue rose 14% year over year to US$46.5 million, net revenue increased 19% to US$13 million, and adjusted EBITDA improved to positive US$0.1 million from negative US$1.7 million a year earlier. Management also said it launched eight new clients, including two top-100 lenders, while refinance origination volumes in its U.S. Title segment more than doubled. This one fits a slowdown scenario as falling or stable rates could help mortgage activity recover. The catch is that it’s still a smaller, more volatile name than Quebecor or Aecon, so patience matters.

Bottom line

If the economy slows, investors don’t need to hide in cash and hope for the best. These three won’t all move the same way, and that’s exactly the point. A little resilience looks even better when it comes from different corners of the market.

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

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