From a food company to a railway, here are five stocks to watch in 2026. As the economy slows down, it’s crucial to stay alert and invest wisely. With the S&P/TSX and the S&P 500 riding high, overpriced stocks are not only limited to the tech sector. Here are a few “keepers” – blue-chip stocks that can withstand the trade uncertainties of 2026 and maintain high dividend yields. These stocks are not screaming buys, but most are undervalued, trading at a discount to their peak prices. Remember, never invest in anything you wouldn’t be comfortable owning 10 years from now.

Empire Co. Ltd. (EMP.A-T)

Empire Co. Ltd., the parent company of Sobeys and several other grocery banners, has seen an eight per cent increase in sales over the past five years, despite economic slowdown and stiff competition. This growth has put their revenue at $31.3 billion in fiscal 2025, making them Canada’s second-largest grocer. The transition to a new CEO in November, Pierre St-Laurent, is expected to further streamline the operations and cautiously expand Empire, adding about 20 stores in 2026.

Canadian Pacific Kansas City Ltd. (CP-T)

Calgary-based Canadian Pacific Kansas City Ltd. (CPKC) has been growing steadily since its US$31 billion merger with Kansas City Southern in 2023. The merger created the first single-line railway connecting Canada, the U.S., and Mexico, offering untapped potential for higher traffic volumes and revenues. Despite concerns of a U.S. economic slowdown and trade disruptions, the stock trades about 20 per cent below its March 2024 peak, making it a potential investment opportunity.

Canadian Natural Resources Ltd. (CNQ-T)

Canadian Natural Resources Ltd. (CNRL) has seen its share price more than double in the past five years. Despite a 16 per cent drop from its 2024 high, CNRL remains an attractive investment opportunity. The company’s strategic acquisitions, including Chevron Corp.’s 20 per cent stake in the Athabasca Oil Sands Project, have allowed it to continue growing. With a generous yield of about 5 per cent, CNRL is both a growth and income stock.

Alimentation Couche-Tard Inc. (ATD-T)

Alimentation Couche-Tard Inc., one of the world’s largest convenience store operators, is still on the hunt for acquisitions. Despite its unsuccessful pursuit of 7-Eleven operator Seven & I Holdings Co. Ltd., the company has seen success with the acquisition of French oil giant TotalEnergies SE’s Western European convenience store division. With a solid balance sheet and potential for more acquisitions, Couche-Tard is a company to watch.

National Bank of Canada (NA-T)

National Bank of Canada has seen impressive financial performance in recent years, with profits increasing by 90 per cent over the past five years. Recent acquisitions, including Canadian Western Bank and Laurentian Bank of Canada’s retail and small-business deposit and loan books, have further increased the bank’s potential for profit. Despite economic headwinds, the bank has set a goal of achieving a return on equity of 17 per cent by 2027, up from the current level of 14.6 per cent.

Opinion articles are based on the author’s interpretations and judgments of facts, data and events. More details

Ethan Radcliffe

Ethan Radcliffe is a senior reporter and digital editor at The Toronto Insider, specializing in Canadian federal policy, GTA urban development, and national economic trends. With over a decade of experience in North American journalism, Ethan focuses on translating complex legislative and economic developments into clear, accessible reporting for Canadian readers. Ethan’s work emphasizes policy analysis, government accountability, and data-driven reporting, with a strong focus on how federal and provincial decisions impact communities across the Greater Toronto Area and beyond. He has covered infrastructure planning, housing policy, fiscal strategy, and regulatory changes affecting Canadian households and businesses. A graduate of Toronto Metropolitan University’s School of Journalism, Ethan brings expertise in investigative reporting, long-form analysis, editorial standards, and digital publishing best practices. His reporting is guided by verifiable sources, public records, and transparent sourcing. In addition to reporting, Ethan has experience in newsroom editing, fact-checking workflows, SEO-informed journalism, and audience analytics, ensuring stories meet both editorial integrity standards and modern digital discoverability requirements. Ethan is committed to objective, fact-driven journalism and adheres to established ethical guidelines, prioritizing accuracy, clarity, and public trust in all reporting.

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