For those who are just starting to learn about the market, recession-proof stocks are stocks of companies that are known to be resilient during economic downturns. These companies often provide goods and services that fall into the category of essential or in high demand, regardless of the state of the economy. In other words, they are businesses that tend to remain relatively stable even during periods of recession. As a result, making them an potentially attractive investment option for investors looking to hedge against market volatility.
Some examples of recession-proof industries include healthcare, utilities, consumer staples, and defense. Healthcare companies tend to do well during economic downturns. This comes as people still require medical services, while utilities are considered essential and provide consistent dividends. Consumer staples such as food and household products also remain in demand. While defense companies are known for their government contracts and steady cash flow.
Investing in recession-proof stocks can provide a sense of security during uncertain economic times. This is because these companies tend to have stable earnings and cash flows. However, it’s important to note that no stock is completely immune to economic fluctuations. Investors should still carefully evaluate each company’s financials, management, and market position before making any investment decisions. With that being noted, here are two recession-proof stocks to check out in the stock market today.
Recession-Proof Stocks To Watch Now
Walmart (WMT Stock)
Starting off, Walmart (WMT) is a retail giant and one of the world’s largest companies by revenue. During times of economic hardship, consumers often turn to discount retailers like Walmart to save money on essential items.
On Monday morning, Walmart announced a month-long giveaway campaign for new mothers in celebration of Mother’s Day. The company will give away 20,000 free one-year Walmart+ memberships worth $98 each to new mothers who give birth in hospitals across the US in May. The campaign, called “Mother of All Savings Memberships,” will also feature celebrities, including Cardi B.
Year-to-date, Walmart stock has increased by 5.72%. While, during Monday morning’s trading session, shares of WMT stock are trading at $151.83 a share.
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Waste Management (WM Stock)
Next, Waste Management (WM) is a provider of waste management services in North America, offering services ranging from garbage collection to recycling and renewable energy production. While the waste management industry may not be the most exciting, it is typically considered recession-proof because waste is always generated, regardless of the economic climate.
Just last month, Waste Management reported the date and time it will release its first quarter 2023 financial results. In detail, the company will release its Q1 2023 earnings results on Wednesday, April 26, 2023 after the stock market closes. To briefly recap, in Q4 2022 WM reported earnings $1.30 per share, with revenue of $4.9 billion.
In 2023, shares of WM stock have jumped by 5.06% year-to-date. Meanwhile, on Monday morning, Waste Management stock opened slightly lower on the day so far by 0.11% at $164.97 a share.