Looking for Recession-Proof Stocks? Find the Outperformers

recession proof stocks 2022

Too much focus on the latter, though, and you could be overly exposed to sudden market drops. At the end of July, Procter & Gamble Company reported its fourth-quarter and 2022 fiscal year financial results. Diving right in, the company reported Q earnings per share of $1.21 and revenue of $19.5 billion. Analysts’ consensus earnings estimate was $1.23 per share and revenue of $19.4 billion. Additionally, PG said they estimate 2023 earnings per share of $5.81 to $6.04 per share, along with revenue estimates of $80.19 billion to $81.79 billion.

  • Roughly 75% of funeral home clients who pay for funeral arrangements ahead of time pay a lump sum.
  • Revenue was $750 million better than expected, while adjusted earnings-per-share topped estimates by $0.21.
  • Thomas’ experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.
  • This can make it more difficult and expensive for investors to acquire and develop new rental properties, leading to a slowdown in the pace of new construction and investment activity in the sector.
  • Cramer said that the Federal Reserve’s chair Jerome Powell doesn’t like inflation at all and he wants investors’ stock portfolios to go down.

A large part of an insurers’ investments are typically in fixed income securities. These have not been particularly fruitful in recent years with interest rates near zero. Other analysts might point to certain statistics, such as high profit margins, low variation of earnings, or a net cash position on a company’s balance sheet.

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Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. The stocks we have selected for this article have already proven they can stand tall during recessionary environments quite sufficiently, as proven by their extended dividend growth track records. The company’s qualities and ability to continue performing well under various economic conditions are reflected in its 60-year-long dividend growth track record.

Universal Corp Stock’s High-Yield Dividend Poised to Rise Again – Income Investors

Universal Corp Stock’s High-Yield Dividend Poised to Rise Again.

Posted: Mon, 22 May 2023 07:00:00 GMT [source]

“We significantly improved our inventory position in Q3, and we’ll continue to make progress as we end the year.” In the retailer’s third quarter, its grocery business saw double-digit year-over-year comparable sales growth. Overall, U.S. same-store sales in Q3 rose 8.2%, and were up 17.4% on a two-year stacked basis.

Recession-Proof Stock #4: Federal Realty Investment Trust (FRT)

The analyst has an Outperform (Buy) rating and a $505 target price on Intuit, 20% higher than where it’s currently trading. In 2022, EOG paid out a total of $3 in regular quarterly dividends, and an additional $5.80 in special cash dividends, for a total payout of $8.80 a share. Second, it gained a larger share of wealthier customers, or those earning more than $100,000 annually.

However, its earnings and revenues in the nine months ended Sept. 30, were down from 2021, due to fewer COVID-related deaths. In June 2019, as recession talk was heating up, Bank of America analyst Joanna Gajuk suggested that companies like Service Corp only suffered a “slight pullback” in its business during the Great Recession. Roughly 75% of funeral home clients who pay for funeral arrangements ahead of time pay a lump sum.

Recession-Proof Stock #13: Consolidated Edison

A total of 53 hedge funds in Insider Monkey’s database of 920 funds reported having stakes in McDonald’s at the end of the September quarter, compared to 50 funds in the previous quarter. In this article, we picked stocks that are recession-proof based on the investment philosophy of Jim Cramer we talked about above. Cramer is bullish on these stocks, and https://forexarticles.net/is-alpari-a-brokerage-we-can-truly-trust/ we have mentioned his thesis for each of these stocks. Major investment firms and economic institutions are now joining the recession chorus. According to Bloomberg, Barclays Capital believes 2023 would be the worst year for the world economy in four decades, while Ned Davis Research Inc. thinks there’s a 65% chance of a worldwide economic downturn.

recession proof stocks 2022

The company says roughly 13.5 million people “have already stopped smoking and switched to IQOS.” But ultimately, preparing your portfolio for a recession is a matter of not putting all of your eggs in one basket. A diversified portfolio may not be fully recession-proof either — but it’s the good bet for most investors. Protecting your investments against downturns, while still maximizing gains, requires a thoughtfully constructed portfolio that’s ready for anything, even a recession. But consumers still have to spend money on health care, they still have to pay their utilities, and they still have to eat.

Home Depot Inc. (HD Stock)

However, the A shares are cheaper while paying out the same dividend as the B shares. Brown-Forman stock always tends to look expensive on an earnings or free cash flow basis. However, it’s worth the premium, given its impeccable quality and safety.

It generated FFO/share of $1.59 for the quarter compared to $1.51 in the prior-year period. FRT also generated comparable property operating income growth of 3.7% for the period and 8.8% year-to-date. California Water Service reported its third-quarter earnings results on October 27. The company reported that its revenues totaled $266 million during the quarter, which was 4% more than the revenues that California Water Service generated during the previous year’s quarter.

The company is a big player in the auto parts market, it makes workplace safety products, and it offers a diverse line of goods in the health care industry, among other endeavors. This makes 3M one of the most all-encompassing ways to profit from the American industrial sector. Even as things stand today, with interest rates still at a low level, Aflac stock is trading at just 10x earnings.

Forbes Advisor has identified nine of the best recession stocks for your investment portfolio right now. They all come from defensive sectors, have steady growth and perform better than 90% of stocks during the bear markets that tend to accompany a recession. Any diversified portfolio should include a mix of financially strong blue-chip stocks that have the financial fortitude to withstand a recession. Blue-chip stocks are attractive to investors during recessions because they typically pay dividends, providing them with a tangible return in the form of income. Blue-chip stocks in recession-resistant industries tend to be especially stable, which can help lessen the blow of a market sell-off or recession. I’ll use the term recession proof in this article, but just remember that there are no absolutes when it comes to investing.