2 Canadian Stocks That Look Strong Even if Growth Slows

Two Canadian food stocks could stay resilient if growth slows, thanks to steady demand and reliable cash generation.

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

Social Media

Follow Amy on LinkedIn and Canada Stock Digest.

Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 29, 10:30 am EDT

| More on: MRUPBH

Key Points

Premium Brands is growing quickly across specialty foods and distribution, but protein costs and integration are real risks.
Its Stampede deal and upbeat 2026 guidance point to continued expansion even in a choppier economy.
Metro offers dependable grocery and pharmacy earnings, though its premium valuation can limit near-term upside.

When growth starts to slow, investors usually stop chasing excitement and start looking for dependability. That is where steady consumer businesses can shine. The strongest stocks in that kind of market often sell everyday products, keep pricing power, and generate reliable cash flow even when shoppers get pickier. In Canada, that can make food-focused companies especially appealing, because people may trim spending around the edges, but they still need groceries and trusted meal options. So, let’s take a look.

A worker drinks out of a mug in an office. — Source: Getty Images

PBH

Premium Brands (TSX:PBH) looks strong here as it’s not just a simple packaged food name. It owns a wide collection of specialty food manufacturing and premium food distribution businesses across Canada and the United States. That gives it exposure to meat, sandwiches, baked goods, seafood, and foodservice channels, which creates a more diversified earnings stream than many investors realize. If growth slows, that mix can help because the company is tied to recurring food demand rather than one narrow category.

The latest numbers were solid. Premium Brands reported record fourth-quarter revenue of $1.9 billion, up 15.7% year over year, and record fourth-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $179.5 million, up 20.7%. For full-year 2025, adjusted EBITDA reached $672.2 million, up from $593.7 million a year earlier. Adjusted earnings per share (EPS) in the fourth quarter climbed to $1.29 from $1.05. That is the kind of growth investors like to see from a food business heading into a shakier backdrop.

Premium Brands also completed its acquisition of Stampede Culinary Partners in January 2026, expanding its U.S. protein platform, and its 2026 outlook calls for revenue of $9.25 billion to $9.55 billion and adjusted EBITDA of $870 million to $910 million. At the same time, the stock does not look wildly expensive for a company with that runway, trading around 13.6 times forward earnings. The risk is that integration and commodity costs can still bite, especially in protein, but this still looks like a strong defensive growth name.

MRU

Metro (TSX:MRU) operates nearly 1,000 food stores and roughly 640 pharmacies, mainly in Quebec and Ontario, under banners including Metro, Super C, Food Basics, and Jean Coutu. Discount groceries help when consumers trade down, and pharmacy sales add another layer of stability that many pure grocers do not have.

Metro stock just showed again why the market trusts it. In second-quarter fiscal 2026 results released on April 22, sales rose 4.1% year over year to $5.11 billion. Food same-store sales increased 1.8%, pharmacy same-store sales rose 5.1%, and net earnings climbed 12.1% to $246.6 million. Adjusted EPS increased 8.8% to $1.11. For the first 24 weeks of fiscal 2026, adjusted net earnings reached $485.2 million, up from $472 million a year earlier. Not flashy growth, but it’s exactly the kind of steady execution that tends to hold up well when the economy cools.

The past year also showed Metro stock still has room to grow without taking wild risks. Online food sales remained strong, up 19.8% in the latest quarter, and the company returned $222.5 million to shareholders through buybacks during the quarter. Metro stock is not cheap at roughly 17.3 times forward earnings and about 0.88 times sales, but investors usually pay a premium for a business this dependable. The main risk is simple. When a stock already carries a premium, upside can look more modest. Even so, if growth slows, Metro stock still looks like one of the safest places for Canadian investors to hide in plain sight.

Bottom line

If I wanted two Canadian stocks that could keep their footing even in a slower-growth market, I would be comfortable with both of these. Premium Brands brings a more ambitious food growth story with some real execution behind it. Metro stock brings classic grocery and pharmacy stability with impressive consistency. Plus, both offer income through dividends even with a $7,000 investment.

One offers a little more upside, the other offers a little more calm, and together, these stocks look like a smart pair for uncertain times.