3 TSX Stocks to Own if Volatility Sticks Around

These three TSX stocks aim to stay resilient amid volatility by leaning on essentials, recurring cash flow, and disciplined execution.

Key Points
  • In choppy markets, the strongest stocks usually have steady demand, pricing power, and management that protects margins.
  • Loblaw and Restaurant Brands are defensive because consumers keep buying groceries and quick meals, even when budgets tighten.
  • TFI International is more cyclical, but a freight recovery could provide the biggest upside if conditions improve.

Volatility has a way of exposing weak stories fast, so investors need businesses that can still grow when shoppers pull back, freight demand wobbles, or headlines get noisy. That usually means looking for steady cash flow, strong brands, sensible balance sheets, and management teams that know how to protect margins when conditions get messy. So let’s look at three TSX stocks that can hold up in practically any scenario.

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L

Loblaw (TSX: L) fits that playbook well. It owns a huge mix of grocery, pharmacy, and discount banners across Canada, including No Frills, Maxi, and Shoppers Drug Mart, so it sits right in the path of everyday spending. Over the last year, value-minded shoppers kept coming through the doors. Loblaw raised its profit outlook in late 2025, and in February it announced a $2.4 billion investment plan for 2026 that includes 70 new stores, 191 renovations, and about 9,700 jobs. That kind of expansion tells you management still sees room to grow, even with consumers staying cautious.

The latest earnings backed that up. For 2025, retail revenue rose 6.3% to $63.9 billion, while adjusted diluted earnings per share (EPS) climbed 13.6% to $2.43. In the fourth quarter, adjusted diluted EPS rose 21.8% to $0.67. The TSX stock may not look cheap at roughly 30 times trailing earnings, so that is the main catch. Still, for a defensive name with steady traffic, pharmacy exposure, and a clear expansion pipeline, Loblaw looks built to handle a choppy market.

QSR

Restaurant Brands (TSX: QSR) owns Tim Hortons, Burger King, Popeyes, and Firehouse Subs, and its franchise-heavy model gives it dependable royalty income without the same capital burden as a fully company-run restaurant chain. Over the last year, it kept pushing international growth, and one notable move was its Burger King China joint venture, which should help it lean harder into expansion abroad.

Its latest results were solid enough to keep the case intact. In 2025, system-wide sales rose 5.3% to US$20.2 billion, total revenue climbed to US$998 million, and adjusted diluted EPS increased 10.7% to US$3.69. Tim Hortons Canada posted 2.8% comparable sales growth in the fourth quarter, while the international business led with 6.1%. The TSX stock trades at about 29 times trailing earnings, so it is not a bargain, and higher coffee and supply chain costs remain a risk. Even so, a 3.4% dividend yield, brand power, and global expansion give it a sturdy profile for uncertain markets.

TFII

TFI International (TSX: TFII) is the least defensive of the three, but that is also why it is interesting. The major transportation and logistics operator spans across Canada, the United States, and Mexico, with businesses in less-than-truckload, truckload, and logistics. Freight markets stayed soft, and in late March, surging diesel prices were delaying a broader trucking recovery. That backdrop has not been easy, but it has also lowered expectations and made quality operators stand out more.

The numbers show the pressure, but also the potential. In the fourth quarter, adjusted diluted EPS came in at US$1.09, down from US$1.19 a year earlier, while 2025 revenue slipped to US$7.9 billion from US$8.4 billion. Net income fell to US$310.6 million, or US$3.72 per diluted share, from US$422.5 million, or US$4.96. Yet acquisitions still added support, and the market now values it at about 33 times trailing earnings. That makes TFII more of a rebound-with-discipline story than a pure safe haven, but if volatility comes with an eventual freight recovery, this one could have the most upside.

Bottom line

If markets stay jumpy, investors don’t need to hide completely, but just need businesses with a reason to keep winning. Loblaw brings steady essentials, QSR brings resilient franchised cash flow, and TFII brings a more cyclical recovery angle for investors willing to accept a bit more risk. Put together, these TSX stocks offer a nice mix of defence, income, and upside, which is exactly the kind of trio that can make a volatile market feel a lot less dramatic.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International and TFI International. The Motley Fool has a disclosure policy.

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