Recession-proof your portfolio with these blue-chip stocks

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Written on Jun 16, 2022

Reading time 3 minutes

American stocks are struggling as the Fed hikes rates.
The S&P 500 index has moved to a bear market.
Exxon, Occidental, and Johnson & Johnson are good buys.

American stocks are not doing well. The tech bubble is slowly bursting while the S&P 500 index has moved to a bear market. While this sell-off is painful, the reality is that it has made many good companies extremely cheap. Here are some of the best blue-chip stocks to buy the dip in.

ExxonMobil

ExxonMobil (NYSE: XOM) is one of the biggest oil and gas companies in the world. Its stock is valued at over $400 billion. Only Saudi Aramco is bigger. The company is printing money as the price of oil and gas surges.

For example, in 2020, the company’s revenue crashed to $179 billlion. In 2021, this revenue surged to over $278 billion. It has jumped to more than $309 billion in the past 12 months. With oil and gas prices rising, the company is expected to hit over $350 billion in revenue this year.

Exxon has also seen its profit jump. In 2020, the company lost over $22 billion. This changed in 2021 as its net income surged to over $23 billion. It has made $25.6 billion in the trailing twelve months. Therefore, there is a likelihood that the ExxonMobil stock price will keep rising in 2022.

Occidental Petroleum

Occidental Petroleum (NYSE: OXY) is another oil company that is set to do well in 2022. The firm has operations in the Unied States, Middle East, and North Africa. In addition to oil and gas, the firm owns OxyChem, a company that manufactures various chemicals like chlorine, caustic soda, ethylene, and sodium silicates among others.

The Occidental stock price has surged by over 80% in 2022 as its revenue and profitality have risen. Its revenue rose from over $17.8 billion in 2020 to over $25.9 billion in 2021. Therefore, like Exxon, Occidental will likely continue soaring.

Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) is another all-weather blue-chip to buy in 2022. It is a large company valued at over $450 billion. In 2021, the company said that it will separate its consumer and pharmaceutical business in order to boost shareholder returns. The separation is expected to complete in 2024.

JNJ is expected to keep doing well since its products are highly essential regardless of market conditions. For example, people will always need its therapies, which are covered by insurance. They will also need its consumer products. Therefore, while the JNJ stock price has retreated recently, there is a likelihood that it will rebound.