4 TSX Stocks Worth Owning If the Economy Softens Without Falling Apart

These four TSX stocks could hold up in a softer economy because they sell essentials, stay profitable, and still have upside.

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. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy 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 30, 9:00 pm EDT

If the economy softens but avoids a full-blown collapse, the best stocks to own are usually the ones that can keep selling through slower demand, protect margins, and still find ways to grow. That often means looking at dependable retailers, health and wellness names, industrial companies with strong customer ties, and businesses tied to real assets. In other words, you want resilience, but you also want enough upside that you are not just hiding out. So let’s look at a few on the TSX today.

A worker gives a business presentation. — Source: Getty Images

CTC

Canadian Tire (TSX: CTC.A) sells a wide range of everyday and seasonal goods through banners that many Canadians already know well. Over the last year, CTC stock kept pushing its True North transformation, saw solid momentum at SportChek and Mark’s, and ended 2025 with stronger traffic and market share gains.

The numbers backed that up. Full-year 2025 retail sales rose 4.5% to $19 billion, consolidated revenue climbed 5.2% to $16.3 billion, and normalized diluted earnings per share (EPS) rose 18.6% to $13.77. CTC stock holds a market cap of about $10 billion with a price-to-book ratio near 1.7, which is not stretched for a retailer that still has loyalty, scale, and improving execution on its side. If consumers stay cautious but keep spending on practical categories, it still looks well placed.

JWEL

Jamieson Wellness (TSX: JWEL) fits a softer-economy setup, as vitamins and supplements tend to be steadier than many consumer categories. It owns a trusted Canadian brand, while also growing internationally and through Youtheory. Over the last year, that growth was clear. Jamieson reported 2025 branded revenue growth of nearly 16%, with strong contributions from every core market, including China.

Full-year results showed revenue of $822.1 million, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $157.4 million, and adjusted diluted EPS of $1.85. The valuation is not dirt cheap, with a market cap around $1.4 billion and a trailing price-to-earnings (P/E) near 23. However, it’s also not outrageous either for a company still growing nicely and selling products that many consumers keep buying even when they trim other spending.

LNR

Linamar (TSX: LNR) operates across automotive and industrial markets, which gives it exposure to vehicle production, access equipment, agriculture, and manufacturing demand. That mix matters right now. In April 2026, management said it was maintaining its full-year 2026 outlook despite updated Section 232 tariff changes, which suggests some confidence in its operating footing.

The stock holds a market cap of about $5 billion and a trailing P/E of just 8.8, which is a pretty modest valuation for a company with that scale. This is not a no-risk stock, since tariffs and auto production swings still matter. However, if the economy merely cools instead of cracking, Linamar looks like the kind of industrial name that could surprise on the upside.

ADN

Acadian Timber (TSX: ADN) owns and manages timberlands in New Brunswick and Maine, giving investors exposure to a hard asset with a history of cash generation. Its 2025 results were not flashy, but they were solid enough for this kind of environment. Revenue from timber sales and services came in at $87 million, adjusted EBITDA was $15.8 million, and free cash flow reached $6.6 million.

The company also declared $20.9 million in dividends for the year, or $1.16 per share. At writing, it holds a market cap near $316 million and a trailing P/E around 6, which looks inexpensive. A weaker housing backdrop can still weigh on wood demand, so that risk is real, but if the economy stays upright, Acadian offers income, asset backing, and a valuation that already leaves room for skepticism.

Bottom line

Put it all together, and these four stocks make sense for a softer-economy playbook because they are not all leaning on the same outcome. CTC stock gives you consumer resilience, Jamieson adds defensive growth, Linamar offers a cheap industrial recovery angle, and Acadian Timber brings income plus real assets. None are perfect, but in a market where growth may cool without completely vanishing, that mix looks pretty smart.