27 Stocks To Watch Now That Are Recession-Resilien
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Posted On: 09/12/2022 6:20:23 AM
27 Stocks To Watch Now That Are Recession-Resilient
When we enter a period of economic uncertainty, the phrase "recession-proof stocks" is tossed about, but really the only certainty is that recession-proof stocks do not exist.
On the other hand, recession-resistant companies are what a savvy investor searches for during the absence of a bull market, as we are now.
Historically, cyclical sectors such as financial and consumer directories have outperformed during bull markets. These equities are frequently susceptible to interest rates and economic growth, so they perform worse than others during a bear market or imminent recession.
Consumer preferences shift from optional and luxury purchases to essential home products and services during a recession as individuals are more concerned with their bottom line.
During uncertain periods such as this, the smart money rotates into recession-resistant or defensive sectors like Consumer Staples, Utilities and Health Care, all of which historically perform well during a recession.
Energy (+49.17%) is the sector with the most significant returns this year, owing to rising oil prices, supply-chain concerns, and demand for gas, energy equipment, and services while the war in Ukraine continues.
This bear market is different. Year-to-date, the returns for the following sectors are:
Consumer Staples: -0.62%
Utilities: +0.73%
Health Care: -8.1%
On the surface, these sectors could look like uncertain investments, bur peeking into them tells a different story and provides investment ideas.
Consumer Staples:
Beverages: +2.21%
Coca-Cola Co (NYSE:KO)
PepsiCo, Inc. (NASDAQ
EP)
Constellation Brands, Inc (NYSE:STZ)
Food Products: +8.76%
Albertsons Companies Inc (NYSE:ACI)
SpartanNash Co (NASDAQ:SPTN)
Andersons Inc (NASDAQ:ANDE)
Tobacco: +9.27
Altria Group Inc (NYSE:MO)
British American Tobacco PLC (NYSE:BTI)
Vector Group Ltd. (NYSE:VGR)
Utilities:
Electric Utilities: -1.71%
NRG Energy Inc (NYSE:NRG)
DTE Energy Co (NYSE
TE)
OGE Energy Corp. (NYSE:OGE)
Multi-Utilities: +9.05%
PG&E Corporation (NYSECG)
Black Hills Corp (NYSE:BKH)
Exelon Corporation (NASDAQ:EXC)
Independent Power and Renewable Energy: -13.83%
Clearway Energy Inc Class A (NYSE: CWEN.A)
NextEra Energy Inc (NYSE:NEE)
First Solar, Inc. (NASDAQ:FSLR)
Health Care:
Providers & Services: +1.23%
National HealthCare Corporation (NYSE:NHC)
Davita Inc (NYSEVA)
Alignment Healthcare Inc (NASDAQ:ALHC)
Health Care Tech: +1.22%
Sophia Genetics SA (NASDAQ:SOPH)
Computer Programs & Systems, Inc. (NASDAQ:CPSI)
HealthStream, Inc. (NASDAQ:HSTM)
Pharmaceuticals: -0.55%
Viatris Inc (NASDAQ:VTRS)
Regencell Bioscience Holdings Ltd (NASDAQ:RGC)
Prestige Consumer Healthcare Inc (NYSEBH)
Benzinga Real-time News
When we enter a period of economic uncertainty, the phrase "recession-proof stocks" is tossed about, but really the only certainty is that recession-proof stocks do not exist.
On the other hand, recession-resistant companies are what a savvy investor searches for during the absence of a bull market, as we are now.
Historically, cyclical sectors such as financial and consumer directories have outperformed during bull markets. These equities are frequently susceptible to interest rates and economic growth, so they perform worse than others during a bear market or imminent recession.
Consumer preferences shift from optional and luxury purchases to essential home products and services during a recession as individuals are more concerned with their bottom line.
During uncertain periods such as this, the smart money rotates into recession-resistant or defensive sectors like Consumer Staples, Utilities and Health Care, all of which historically perform well during a recession.
Energy (+49.17%) is the sector with the most significant returns this year, owing to rising oil prices, supply-chain concerns, and demand for gas, energy equipment, and services while the war in Ukraine continues.
This bear market is different. Year-to-date, the returns for the following sectors are:
Consumer Staples: -0.62%
Utilities: +0.73%
Health Care: -8.1%
On the surface, these sectors could look like uncertain investments, bur peeking into them tells a different story and provides investment ideas.
Consumer Staples:
Beverages: +2.21%
Coca-Cola Co (NYSE:KO)
PepsiCo, Inc. (NASDAQ
EP) Constellation Brands, Inc (NYSE:STZ)
Food Products: +8.76%
Albertsons Companies Inc (NYSE:ACI)
SpartanNash Co (NASDAQ:SPTN)
Andersons Inc (NASDAQ:ANDE)
Tobacco: +9.27
Altria Group Inc (NYSE:MO)
British American Tobacco PLC (NYSE:BTI)
Vector Group Ltd. (NYSE:VGR)
Utilities:
Electric Utilities: -1.71%
NRG Energy Inc (NYSE:NRG)
DTE Energy Co (NYSE
TE) OGE Energy Corp. (NYSE:OGE)
Multi-Utilities: +9.05%
PG&E Corporation (NYSE
CG) Black Hills Corp (NYSE:BKH)
Exelon Corporation (NASDAQ:EXC)
Independent Power and Renewable Energy: -13.83%
Clearway Energy Inc Class A (NYSE: CWEN.A)
NextEra Energy Inc (NYSE:NEE)
First Solar, Inc. (NASDAQ:FSLR)
Health Care:
Providers & Services: +1.23%
National HealthCare Corporation (NYSE:NHC)
Davita Inc (NYSE
VA) Alignment Healthcare Inc (NASDAQ:ALHC)
Health Care Tech: +1.22%
Sophia Genetics SA (NASDAQ:SOPH)
Computer Programs & Systems, Inc. (NASDAQ:CPSI)
HealthStream, Inc. (NASDAQ:HSTM)
Pharmaceuticals: -0.55%
Viatris Inc (NASDAQ:VTRS)
Regencell Bioscience Holdings Ltd (NASDAQ:RGC)
Prestige Consumer Healthcare Inc (NYSE
BH) Benzinga Real-time News
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