As the economy is still struggling to get back on its feet, investors are looking for ways to get a good return on their investments. Investing in stocks during recessions can be tricky, though, so it’s essential to do your research. In light of the recent Covid-19 pandemic, we have compiled a list of three recession-ready stocks that could help you make a profit and grow your portfolio.
We never know when a recession is around the corner, so better be safe than sorry. These stocks have a proven track record of weathering difficult times and could help grow your portfolio.
Pfizer is the biggest pharmaceutical company in the world and has been operating for 162 years. In that time, they’ve contributed to the development of some of our most life-saving medications, including the Covid-19 vaccine. Many people may not realize that the same company that produces Viagra also manufactures over 150 vital drugs that benefit nearly every person in America, such as Advil, Xanax, and Centrum multi-vitamins.
The stock comes with a dividend yield of 3.3%, which means you get to collect a nice sum of cash on top of what your shares gain in value. Their chart is also pointing up, indicating that their stock price could continue to rise.
What’s more, Pfizer will continue to reap the benefits from governments all over the world paying them for doses of Covid-19, as well as the new vaccine that they’re working on. It is estimated that over 40% of their revenue last quarter was vaccine-related, and that’s on top of their well-known pharmaceuticals.
Since many drugs are relatively inexpensive to produce, they will continue to profit even when the economy is struggling. For this reason, Pfizer has earned itself a place on our list of recession-ready stocks that investors should have in their portfolios.
In recent recessions, the S&P 500 went down an average of 37.5%, and it took around 2.8 years for the market to recover. Investors who bought Pfizer stock in October 2008 when the economy was struggling would’ve seen their shares rise by 251%, all while collecting dividends along the way.
Pfizer is currently trading at $43.68.
Another hero of the pandemic is Amazon. When people were locked in and quarantined from the rest of the world, they turned to
Amazon for food and supplies. The giant managed to stay stable throughout the pandemic, even when it seemed like some of its competitors weren’t.
Regardless of Covid-19, Amazon is an outstanding stock to buy right now. Jeff Bezos just became the richest man on Earth and is exploring space, so you know things are going well. As far as business goes, Amazon is still one step ahead of the competition.
Their revenue has been increasing steadily as more and more people switch to their Prime service, which offers free shipping on all orders. Since Amazon can afford to pay for the shipping even if they lose money on an individual sale, they make up the difference by carrying lower margins.
This means that we will continue to see growth in net income and revenue for Amazon, even when the economy slows down. Their business model is solid, and they’ve had good returns on investment in recessions of the past. Amazon is also establishing itself as one of the premier tv and movie streaming platforms, with the release of their new shows like Bosch, The Boys, and Tom Clancy’s Jack Ryan.
Amazon is currently trading at 3400 USD, with a P/E ratio of 59.21.
Ah, the iPhone. We all know at least one person who can’t live without it. iPhones are not only a great product to have on your person, but they also make for solid investments.
Apple has been around since 1976 and is one of the most valuable companies on Earth. They’ve overcome numerous bumps on the road to success and have shown that they can handle a downturn in the economy. If you’re thinking about buying stocks, it’s a good idea to invest in companies with a proven track record of growth.
It is estimated that Apple sold nearly 80 million iPhones last quarter alone! That is on top of the $7.4 Billion in sales from iPads and over 6 million Macbooks laptops. Not to mention AirPods, iTouches, and Apple watches.
The sheer number of devices they sell is one of the reasons why we believe that Apple will be recession-proof in the future. Its revenue and net income continue to grow despite economic slowdowns. Apple is an excellent stock to have in your portfolio. Like their competitor Amazon, they’re also switching into the music, tv, and movie streaming world.
The only difference is that Apple Music is already the crowd favourite, with more than 72 million subscribers.
Apple is currently trading at $145. With their current P/E ratio of 28.49, Apple is a great buy right now. As time goes on, we see Apple continuing to outpace its competitors with better technology and new products that people want to buy. The more they bring those products to market, the more the buybacks will strengthen their stock price.
There was uncertainty after the untimely death of Steve Jobs in 2011, but Tim Cook has taken the company in a solid direction without sacrificing user safety. Everyone loves Apple because its products are simple and offer clever user experiences that make our lives easier.
Conclusion On Recession-Ready Stocks
The economy is constantly changing, and so are people’s lives. No matter what happens in the short term, three significant factors stay the same: iPhones, Amazon, and stock investments. These three recession-proof stocks can help you weather any storm that comes your way. With over a million apps, a great business model, and a wide variety of user experiences, these companies are more than likely to be a safe bet.
The current state of the economy is solid right now due to low unemployment rates and growing revenue from large buying institutions like Apple and Amazon. When times do get tough again, you can count on these solid stocks to keep your portfolio going strong.
We hope you found this article helpful! We are putting out new content daily, so check back soon for more.