Recession-proof stocks are those that are less likely to be impacted by an economic downturn. Many investors believe that these stocks provide a level of stability and security during turbulent times. There are a few factors that can make a stock recession-proof. For example, companies that sell essential goods or services are often less impacted by economic fluctuations. For example, some of the more notable recession-proof stocks in the stock market today are companies like McDonald’s Corporation (NYSE: MCD), Walmart Inc. (NYSE: WMT), and Johnson & Johnson (NYSE: JNJ) to name a few. This is because people will continue to need these items even when they are cutting back on other spending.
Additionally, companies with diverse customer bases tend to weather economic downturns better than those that rely on only a few major customers. This is because a downturn in one sector may not impact the others as severely. Finally, companies with strong balance sheets and little debt are typically better equipped to weather a recession. This is because they have the financial resources to survive tough times without having to resort to borrowing money. Recession-proof stocks can provide stability and security for investors during times of economic turmoil. With that, here are three top recession-proof stocks to watch in the stock market this week.
Recession Proof Stocks To Invest In [Or Sell] Right Now
- The Procter & Gamble Company (NYSE: PG)
- The Kraft Heinz Company (NASDAQ: KHC)
- Home Depot Inc. (NYSE: HD)
The Procter & Gamble Company (PG Stock)
Starting off the list today is The Procter & Gamble Company (PG). In short, Procter & Gamble Company is an American multinational consumer goods company. The company sells a wide variety of products, including beauty, health care, laundry and cleaning, and pet food.
PG Recent Stock News
At the end of July, Procter & Gamble Company reported its fourth-quarter and 2022 fiscal year financial results. Diving right in, the company reported Q4 2022 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.
Jon Moeller, Chairman, President, and Chief Executive Officer commented in the company’s letter to shareholders, “The P&G team’s execution of our integrated strategies delivered strong top-line growth, earnings growth, and significant cash return to shareowners in the face of severe cost and operational headwinds. As we look forward to fiscal 2023, we expect another year of significant headwinds. We remain committed to our integrated strategies of superiority, productivity, constructive disruption and an agile and accountable organization structure.“
PG Stock Chart
As of Friday’s closing bell shares of PG stock are trading at $138.28 per share. Meanwhile PG stock is still down approximately 15% year-to-date. With that in mind, could now be a good time to invest in Procter & Gamble stock this week?
The Kraft Heinz Company (KHC Stock)
Next up, let’s take a look at The Kraft Heinz Company (KHC). For starters, The Kraft Heinz Company is an American food and beverage company headquartered in Pittsburgh, Pennsylvania. The company’s brands include Kraft, Heinz, Oscar Mayer, Philadelphia, Planters, Maxwell House, Lunchables, Capri Sun, and Kool-Aid.
KHC Recent Stock News
In July, the company reported its most recent second quarter 2022 financial results. In detail, Kraft Heinz posted second quarter 2022 earnings of $0.70 per share on revenue of $6.6 billion. This is compared to Wall Street’s consensus earnings estimate of $0.67 per share, and revenue of $6.4 billion for the quarter. Furthermore, in the same report, the company said it projects a 2022 fiscal year revenue of approximately $28.0 billion.
Miguel Patricio, Chief Executive Officer and Chair of the Board of Directors had this to say in its news release, “Though the environment remains fluid, we are better able to anticipate dynamic conditions, adapt to this constantly changing environment, and demonstrate our resiliency against new challenges. We are anticipating and adapting to changing market conditions while managing inflation through pricing realization and gross efficiencies. I am very proud of the Kraft Heinz team because, despite all of the challenges, employees across the organization continue to do a tremendous job.“
KHC Stock Chart
Separate from that, as of Friday’s close, shares of KHC stock are trading at $34.71 per share. Meanwhile, so far in 2022, Kraft Heinz has outperformed the broader markets as shares are only down 3.96% so far in 2022. Considering this, will you keep a close eye on Kraft Heinz stock as a top recession-proof stock to watch?
Home Depot Inc. (HD Stock)
Last but not least, we have Home Depot Inc. (HD). For the uninitiated, Home Depot is an American home improvement supplies retailing company. For a sense of scale, Home Depot is the largest home improvement retailer in the United States with over 2,316 retail stores. Today, Home Depot Inc. provides its shareholders with an annual dividend of 2.60%.
HD Recent Stock News
Just last month, Home Depot reported better-than-estimated Q2 2022 financial results. Specifically, Home Depot reported earnings of $5.05 per share and revenue of $43.8 billion. This is versus analysts’ consensus estimates for the second quarter, which were earnings per share of $4.95, and revenue of $43.4 billion. What’s more, Home Depot announced a 6.5% increase in revenue during the same period, in 2021.
Continuing on, the company reaffirmed its full-year fiscal 2022 guidance. In detail, the company said they continue to estimate fiscal 2023 earnings of approximately $16.31 per share on revenue of $155.69 billion.
Additionally, Ted Decker, CEO, and president at Home Depot commented, “In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history. Our performance reflects continued strength in demand for home improvement projects. Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment. I would like to thank them and our many partners for their hard work and dedication to our customers.“
HD Stock Chart
Year-to-date shares of Home Depot stock have fallen over 32% so far. As of Friday’s closing bell, HD stock is currently trading at $275.97 per share. In addition, Home Depot stock is currently down 34.38% from its 52-week high of $420.61 a share. All in all, do you think Home Depot stock is a good recession-proof stock to invest in right now?