3 Safe TSX Stocks I’d Buy if the Market Continues to Fall

Here are three safe TSX stocks to buy right now, as the fears of resurging COVID-19 cases are hurting the stock market.

| More on:

The fears of resurging COVID-19 cases are affecting the stock markets globally. In the last couple of sessions, the TSX Composite Index has dived by 2.3% — slashing its year-to-date gains to 13.2%. Despite the broader market weakness, the shares of some gold mining companies are still trading on a positive note in July. Let’s take a closer look at some safe stocks to buy amid the ongoing market selloff.

Why buy gold stocks amid a market selloff?

In general, the demand for the yellow metal tends to rise in times of uncertainty, leading to a rally in gold prices and the gold mining companies’ shares. If the ongoing concerns about the pandemic continue to haunt investors in the coming months, it should be relatively safe to bet on these three TSX gold stocks. And even if the market resumes its upward journey after a short-term correction, adding these gold stocks to your portfolio should ensure you get handsome returns on your investment in the long term.

Kirkland Lake Gold stock

Kirkland Lake Gold (TSX:KL)(NYSE:KL) is a Canadian gold mining and exploration firm with a market cap of $13.6 billion. Its stock is currently trading at $50.91 per share with about 3.2% year-to-date losses. On the positive side, it has risen by about 7% this month, despite the market-wide selloff in July. In Q1 2021, Kirkland’s EBITDA (earnings before interest, taxes, depreciation, and amortization) rose by 2% YoY (year over year) to US$361 million. It was also better than analysts’ estimate of US$350 million. With this, the company’s EBITDA margin for the quarter expanded on a YoY basis to 65.5%.

Moreover, its strong balance sheet, stable cash flow, and solid profitability make Kirkland Lake Gold stock one of the safest TSX gold stocks to buy right now.

Franco-Nevada stock

Franco-Nevada (TSX:FNV) is a Toronto-based gold-focused royalty and stream firm with a market cap of $36 billion. Its stock has risen by nearly 5% in July, taking its year-to-date gains to 18%. In Q1 2021, Franco-Nevada posted a solid 45% YoY rise in its earnings to US$0.84 per share, beating analysts’ consensus estimates. Similarly, the company’s revenue for the quarter rose by nearly 28% from a year ago to US$309 million, while its adjusted net profit surged by 47% to US$161 million.

Franco-Nevada’s solid free cash flow allows it to consistently expand its portfolio by acquiring more profitable businesses and reward its investors with dividends. Overall, FNV stock could be a great buy for investors looking for safe stocks to buy amid the ongoing market correction.

Agnico-Eagle Mines stock

Agnico-Eagle Mines (TSX:AEM)(NYSE:AEM) could be another fundamentally strong gold stock to buy in July. Despite having risen by 3.2% this month so far, AEM stock is currently trading at $77.39 per share with about 14% year-to-date losses.

Last year, Agnico Eagle Mines reported a 26% rise in its total revenue to US$3.1 billion. Its higher revenue and expanding profitability helped it post an adjusted net profit of US$452 million in 2020 — up 97% from a year ago. Agnico Eagle’s strong operational performance, its consistently rising production, and stable financial position make its stock worth considering at the moment.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

Concept of multiple streams of income
Stocks for Beginners

Lock Up This 9.2% Dividend Yield From a Top Royalty Stock

Royalty stocks have a strong advantage when it comes to creating passive income for investors. But this one has the…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

Is First Quantum Minerals Stock a Good Buy Right Now?

First Quantum is a TSX stock that trades 61% below all-time highs. However, the mining stock still trades at a…

Read more »

nugget gold
Metals and Mining Stocks

The Best Gold Stock to Invest $1,000 in Right Now

Here are two of the best Canadian gold stocks that can yield some eye-popping returns in the long run.

Read more »

nugget gold
Stocks for Beginners

The Ultimate Mining Stock to Buy With $1,000 Right Now

This mining stock just saw a drop, but don't let that keep you from diving in. This miner is due…

Read more »

A plant grows from coins.
Metals and Mining Stocks

Canadian Mining Stocks: Buy, Sell, or Hold?

Explore 2025’s top Canadian mining stocks – gold, uranium, and base metals offer big potential in a dynamic, commodity-driven market.

Read more »

farmer holds box of leafy greens
Metals and Mining Stocks

3 Reasons to Buy Nutrien Stock Like There’s No Tomorrow

Nutrien stock has lost 34% of its value just this year alone and looks incredibly cheap today. Yet, secular trends…

Read more »

Canada national flag waving in wind on clear day
Tech Stocks

Trump Trade: Canadian Stocks to Watch

With Trump returning to the presidency, there are some sectors that could boom in Canada, and others to watch. But…

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Invest $7,000 in This Dividend Stock for $672 in Passive Income

High yield can be an essential requirement when you need to start even a modestly sized passive income with a…

Read more »