The Economy Is Slowing: 2 TSX Stocks I’d Still Buy Today
The article argues that a slowing economy doesn’t automatically make all growth stocks too risky. It highlights Loblaw (TSX:L), citing Q1 2026 revenue growth of 4.2%, adjusted diluted EPS up 10.6%, and same-store sales up 2.4% (food) and 4.1% (drug). It also cites MDA (TSX:MDA) Q1 2026 revenue up 32% to $464M, adjusted EBITDA up 32.1% to $90.6M, and a $3.7B backlog.
Backlog and accelerating results are positioned as downside support, but valuation risk is flagged.
Article highlights MDA’s Q1 2026 results with 32% revenue growth and a $3.7B backlog, emphasizing visibility amid slowdown risk.
Potentially supportive for the stock on dips, though upside may be capped if valuation expectations are high.
Background
The article is a macro framing piece arguing that slowing growth doesn’t uniformly harm all growth stocks; it highlights two TSX defensive-growth profiles.
Why it matters
It uses Q1 2026 operating/financial metrics to justify a “buy” thesis for each company, emphasizing resilience (L) and backlog visibility (MDA) while noting valuation/program risks.
Market relevance
Provides company-specific Q1 datapoints used to support defensive positioning in a slowing economy, but it is not a new catalyst beyond the reported quarter.
Market effects
Reinforces read-across that defensive demand (groceries/pharmacy) and government/defense-linked tech can hold up better during macro slowdowns.
Focuses on Canadian TSX names, potentially supporting relative performance of Canadian defensives and aerospace/space contractors.
Limited; space/defense demand is globally relevant but the article is primarily Canada-specific.
Alternative perspectives
If the market is already pricing “defensive growth,” the cited fundamentals may not prevent multiple compression, especially for the higher-expectations space name.
Regulatory pricing pressure for grocers and potential program timing/margin variability for defense/space backlog execution are not quantified in the article.
Key entities
- companyLoblaw
Cited Q1 2026 revenue growth, same-store sales gains, and ongoing dividend/earnings growth.
- companyMDA Space
Cited Q1 2026 revenue/EBITDA growth and a $3.7B backlog as visibility into demand.
