With analysts seeing a likely US recession, here are 4 recession proof stocks to consider

By:
on May 21, 2024
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  • Analysts have predicted a US recession on the horizon in mid 2024.
  • Recessions can mean disrupted returns for even the most robust investment or trading plan.
  • So, we've rounded up 4 of the best recession-proof stocks.

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At the beginning of 2024, Citigroup chief US economist predicted in a CNBC interview that the USA would enter a recession in the middle of the year.

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With June around the corner, we round up our top 5 recession-proof stocks in May 2024:

  1. Regeneron Pharmaceuticals Inc
  2. Waste Management Inc
  3. The Procter & Gamble Company
  4. Walmart

1. Regeneron Pharmaceuticals Inc

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Two industries known to be resilient in challenging economic times are the pharmaceuticals and healthcare sectors.

American biotechnology and big pharma company Regeneron does this better than most. For example, in the chaotic first days of FY 2020, as the world grappled with the pandemic, Regeneron stood strong.

In Q4 of 2020, the company even announced that its revenues had increased 30% to $2.42 billion versus fourth quarter 2019.

Since then, Regeneron has only gone from strength to strength. Its stock price is up more than 9% this year to date, and 31.3% in the past 12 months.

But it is in the long-term that Regeneron really process its value. In the past five years, which have consistently been threatened with recessions in the US, Regeneron stock is up a whopping 215%.  

2. Waste Management Company

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One of the golden rules of finding recession-proof stocks is to look for companies offering goods or services that are needed in all environments, good and bad.

The Waste Management company certainly fits the bill, as America’s most prominent company handling garbage collection, dealing with waste and recycling.

The stock price here speaks for itself – costing more than $200 per share, it’s certainly not ‘rubbish’. That being said, its also less expensive than many blue-chip corporates, often with higher returns.  

Waste Management’s share price is up 20.87% in 2024 so far, 26.88% in the past year. It’s almost doubled in value in the past five years, up more that 92% since 2020.

3. The Procter & Gamble Company

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P&G needs no introduction, as the makers of many household name domestic products, such as Tide detergent.

This is another form that recession-proof stocks can take: consumer staple necessities like food or cleaning products that aren’t luxury items, but instead used in everyday life. Makers of things like tinned goods and pantry stalwarts, plus soaps and other cleaning agents, tend to weather recessions well. After all, people still need life’s essentials, even in lean times.

For P&G in particular, their share price is up 12.48% this year to date, and a similar amount in the past year. Longer-term, it’s also up 56.82% in the last five years.

4. Walmart

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Discount home store retailer Walmart has gained a reputation for being one of the companies that outperforms in times of hardship, including recession.

This was noticed in 2008, during the global financial crisis, when Walmart sales went through the roof as consumers looked to discount stores to keep costs down.

Some analysts have even gone far enough to say that Walmart’s share price suddenly spiking can be an indicator that a recession is incoming.

While Walmart’s stock price is doing well currently, it’s not yet at those levels. The share price is up 16% this year so far, and almost 30% n the past year. However, it’s in the longer-term stretch that it comes into its own, appreciating nearly 88% in the past five years.

USA Economic Recession