When the economy softens, I like stocks that do not need booming growth to keep winning. That usually means essential-service businesses, patient capital allocators, and top-tier financials with enough scale to keep earning through a slower patch. In a market like this, resilience matters more than hype. So today, let’s look at three Canadian stocks bringing that in different ways, while still offering enough upside to make them more than just defensive holds.
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WCN
Waste Connections (TSX: WCN) collects, transfers, disposes, and recycles waste across North America, so demand tends to stay steady even when businesses and consumers get more cautious. Over the last year, it kept growing through pricing, acquisitions, and solid execution. Its first-quarter 2026 results showed revenue of US$2.4 billion, up from US$2.2 billion a year earlier, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to US$769.5 million from US$712.2 million. For full-year 2025, revenue hit US$9.5 billion and adjusted EBITDA reached US$3.1 billion, and management laid out a 2026 outlook that points to more growth.
It is not a bargain-bin stock, but quality rarely is. It currently holds a market cap of about $53 billion and a trailing price-to-earnings (P/E) ratio near 37.5. That is a premium multiple, yet it makes sense for a business with recurring demand, pricing power, and room to keep compounding over time. In a softer economy, investors often pay up for that kind of dependability.
ONEX
Onex (TSX: ONEX) isn’t defensive in the same way waste collection is, but it does give investors exposure to private equity, credit, and asset management through a company that still trades below book value. That can look pretty appealing when public markets get choppy and investors start hunting for value. Over the last year, the big story was Convex. Onex completed its roughly $7 billion acquisition of the specialty insurer in February 2026, while also securing a strategic investment from AIG. That deal added a new growth engine and made the company’s earnings mix more interesting.
The latest numbers make the case easier to understand. Onex reported 2025 net earnings of US$617 million, up from US$303 million in 2024, while distributable earnings came in at US$648 million. It ended 2025 with about US$8.7 billion of investing capital, and total assets under management (AUM) of about US$59.2 billion. At writing, it holds a market cap around $8.7 billion, a trailing P/E near 9.4, and a price-to-book ratio around 0.73. That is the kind of setup value investors tend to notice. The risk is that private asset markets and deal activity can still swing with sentiment, but if the economy softens without cracking, Onex looks like a stock with room to rerate higher.
RY
Royal Bank of Canada (TSX: RY) has scale across Canadian banking, wealth management, commercial banking, and capital markets, which gives it multiple ways to keep growing even when one part of the economy slows down. Over the last year, it kept showing that diversification at work. In the first quarter of 2026, Royal Bank stock posted record net income of $5.8 billion and diluted earnings per share (EPS) of $4.03, up 13% and 14% year over year, with especially strong contributions from wealth, personal banking, commercial banking, and capital markets.
The valuation still looks reasonable for that kind of performance. Royal Bank stock offers a market cap around $338 billion and a trailing P/E of about 16.7. That’s not dirt cheap, but hardly stretched for Canada’s largest bank by market value. The CET1 ratio was 13.7% in the latest quarter, which gives it a sturdy capital cushion, even as provisions for credit losses stayed elevated. That last part is the main risk in a softer economy. Credit costs can rise if households or businesses feel more strain. Even so, Royal Bank stock looks like the kind of bank that can keep delivering through a slower stretch and come out even stronger on the other side.
Bottom line
Put the three together, and the mix works well. Waste Connections offers dependable demand, Onex offers discounted value with improving momentum, and Royal Bank stock offers scale and earnings power. None needs a roaring economy to make progress, and that’s exactly why all three could benefit if growth cools but does not fall apart.
