3 Canadian Stocks with Solid Earnings Growth in Recession-Proof Industries

The Canadian stocks we’ve identified could outperform the market with a recession looming

SmallCapPower | October 14, 2022: The recent stock-market selloff has many investors seeking relative safe havens as growth stocks have gotten hammered. The Canadian stocks we’ve found have reliable earnings that have performed well during recessionary periods.

*Share price and other metrics as of October 13, 2022

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Loblaw Companies Limited (TSX:L) – $109.21

Loblaw is one of Canada’s largest grocery, pharmacy, and general merchandise retailers, operating the most expansive store footprint in Ontario and maintaining sizable presences in provinces like Quebec and British Columbia. Key grocery banners include Loblaw, No Frills, and Maxi, while its pharmaceutical operations are the product of its 2014 acquisition of Shoppers Drug Mart. The firm carries a robust private-label assortment, with top sellers like President’s Choice and No Name. In addition to its retail operations, Loblaw oversees a financial-services business, which provides credit card services and guaranteed investment certificates, and also operates its PC Optimum loyalty program. The firm’s controlling shareholder is George Weston Limited, which owns 52.6% of the equity.

  • Market Cap: $35.8B
  • One-Year Return: 23%
  • Dividend Yield: 1.5%

Dollarama Inc. (TSX:DOL) – $81.26

Dollarama is a Canadian value retailer, offering a broad assortment of consumable products, general merchandise and seasonal items through both brick-and-mortar stores and online. The Company has ~1,250 locations across Canada, providing customers with compelling value in convenient locations, such as strip malls and other high-traffic areas. The Company plans to have 1,700 stores open within 5-6 years. Dollarama’s merchandise is sold at select fixed price points up to $4.00. In 2020, Dollarama announced the acquisition of Dollar City, a chain of dollar stores operating in Latin American (Colombia and Peru), with plans to have 1,000 stores operating by 2027.

  • Market Cap: $23.6B
  • One-Year Return: 46%
  • Dividend Yield: 0.3%

George Weston Limited (TSX:WN) – $143.68

George Weston is a Canadian public company founded in 1882. The Company operates through its two reportable operating segments, Loblaw Companies Limited and Choice Properties Real Estate Investment Trust. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services and wireless mobile products and services. Choice Properties owns, operates, and develops high-quality commercial and residential properties across Canada.

  • Market Cap: $20.8B
  • One-Year Return: 10%
  • Dividend Yield: 1.8%

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