2 Canadian Stocks That Could Win if Rates Stay Put

If rates stay put, these two TSX stocks could look more attractive as investors favour predictable planning and cash-flow-backed growth.

Key Points
  • Clairvest is a quiet private-equity compounder trading below book value, offering upside if deal markets firm.
  • Its results can swing sharply with individual investments, so patience is required when marks move against it.
  • Predictive Discovery now pairs producing gold cash flow with the Bankan growth project, but West Africa raises execution risk.

When rates stay put, investors often get a strange mix of relief and caution. Lower-rate dreams may fade, but steady rates still help companies plan. The best stocks in that setup often have recurring revenue, strong assets, or exposure to sectors where customers keep spending even when borrowing costs remain firm. These aren’t always the flashiest names, but when the market stops guessing about rate cuts, steady businesses with clear growth paths can look much more appealing.

Pile of Canadian dollar bills in various denominations

Source: Getty Images

CVG

Clairvest Group (TSX: CVG) is one of those quiet Canadian names many investors miss. The Toronto-based Canadian stock is a private equity firm, which means it invests in private businesses and tries to help them grow over time. It has backed companies across gaming, aviation, recycling, business services, and other niche sectors. This isn’t a simple dividend stock or bank stock. It’s more like a long-term compounder tied to the value of its investment portfolio.

Over the last year, Clairvest saw some bumps. Its second quarter of fiscal 2026 included a large loss tied to a provision on its Head Digital Works investment. That hurt results and reminded investors that private equity can move in chunks. Yet the third quarter looked much better. Book value rose to $1.255 billion, or $91.66 per share, as of Dec. 31, 2025. That compared with $1.154 billion, or $83.92 per share, three months earlier.

That book value matters for valuation. If CVG trades below or near book value, investors may get access to a private investment portfolio at a reasonable price. Right now, it trades at just 0.83 times book value. In the third quarter, Clairvest reported net income of $105.1 million, or $7.65 per share. It also had a long record of investing alongside management teams. The risk is patience. Private equity returns can look lumpy, and bad investments can drag on results. But if rates stay steady, deal activity and valuations could firm up, giving Clairvest more room to shine.

PDI

Predictive Discovery (TSX: PDI) became listed on the TSX in April 2026 after completing its merger with Robex Resources. The combined Canadian stock brings together Robex’s producing Kiniero gold mine and Predictive’s Bankan gold project in Guinea. In short, PDI now offers both current gold production and a major development pipeline. That’s a powerful mix when rates stay put, and investors keep watching gold.

Recent news over the last year has centred on that merger. Robex shareholders approved the deal, and PDI issued shares to former Robex holders. The result was a larger West African gold company with a stronger balance sheet and a clearer plan. The Canadian stock now aims to use cash flow from Kiniero to help fund future growth at Bankan. That gives investors more than a pure exploration story, which can feel risky when financing markets get tight.

The latest numbers showed why PDI could catch attention quickly. In the March 2026 quarter, combined gold production reached 48,178 ounces, up sharply from the previous quarter as Kiniero ramped up. Revenue came in around US$200.8 million, while free cash flow reached about US$90 million. The Canadian stock also reported strong cash after the merger. Valuation will take time to settle because PDI only recently landed on the TSX, but the setup looks compelling if gold stays strong. The risks are also clear. Guinea brings political and operating risk, and mine development rarely follows a perfectly smooth road.

Bottom line

If rates stay put, both Canadian stocks could appeal for different reasons. Clairvest offers a discounted private-equity-style portfolio with upside if deal markets improve. PDI offers gold production, cash flow, and growth at a time when investors still want protection from uncertainty. Neither is a sleepy blue chip. But for investors willing to look beyond the usual TSX names, these Canadian stocks could win if the rate pause keeps the market hunting for fresh opportunities.

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

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