Whether there will be a recession in 2023 or not, an intelligent investor will always seek good investment opportunities. However, considering the current state of the global stock market, recession proof stocks may be the best option for your portfolio.
Between rising inflation, higher interest rate, and the changing macroeconomic environment, the chance of recession is increasing by the day. Based on this, we offer you a list of the top 20 recession proof stocks to invest in 2023.
Costco Wholesale
To recession proof your portfolio, you should invest in high-quality stocks that combine efficiency, growth, and industry-leading competence throughout a recession and a challenging environment.
Costco is a company that provides exactly that. A household name and a brand that everyone loves, Costco has been known to outperform in difficult market conditions. Its stock price rose 1.71% in 2022; meanwhile, the S&P500 declined 20%.
PepsiCo, Inc.
In the past 12 months, Pepsi has beaten its PSE estimation by 100% and its stock price has increased by 1.42%, despite the market turmoil and Nasdaq crash. The company proved to be one of the best recession proof stocks in 2022 and currently signals as a good buy amongst analysts.
Anheuser-Busch InBev BUD
Anheuser-Busch InBev is a multinational drink and brewing company with a market capitalization estimate of €95.02B. The company has an average PE ratio of 24 and pays a dividend yield of 0.64%.
InBev stock prices are estimated at $61, according to Thursday’s closing session, which makes it on the low end of the list of recession proof stocks. The company’s sales in 2021 and 2022 increased significantly compared to the pandemic period, making this one a promising recession proof investment.
Roche Holdings (RHHBY)
Experts believe Roche Holdings has high growth potential. Its financial growth has improved significantly in the last year, and the company’s revenues increased by 9.16% in 2021 and are expected to exceed a new high record in 2022. Currently, the company has a good buying signal with a daily average price of $40.05.
GlaxoSmithKline, GSK
GSK is more of an undervalued recession proof stock; the company has an average daily price of £14 and a PE ratio of 4. However, the company is a multinational pharmaceutical company with increasing investment growth potential, especially during a recession and a market crash.
Palo Alto Stock
Palo Alto Networks is an American cybersecurity company. Currently, its stock prices are traded at a daily price of $154.75–$155.87, which is considered a high recession proof stock category. The company has a promising growth stock and future revenues.
On top of that, the company was one of the most searched stocks on Zacks.com, and inventors see higher potential future gains with this stock.
Zimmer Biomet Holdings, ZBH
In the past year, the company has delivered outstanding financial results and has been one of the top-performing companies in its industry. ZBH has increased by 7.5% year on year. The company has a PE ratio of 95.21 and a dividend yield of 0.76 percent.
ZBH has a strong buy rating from investment analysts.
Ambev ABEV
The company has a daily stock price range of $2.66 to $2.71 and an annual range of $2.42 to $3.32. The company has outperformed its industry in the past five years, with an average annual increase of 24% in 2021.
The company holds a strong buy rating, with the potential of reaching a new high in 2023.
Walmart Stock
Wal-Mart stock will always remain an appealing stock to invest in, especially during a recession. The company remains a solid stock in terms of its revenues and stock growth potential. Despite the inflationary pressure and the turmoil spreading in 2022, the company’s financial health remains solid.
Bank of America Stock
Banks tend to underperform during a recession, but for a global leader in investment and growth investment banking, the probabilities are in its favor. Bank of America was one of the few banks that remained stable during last year’s stock market falls. The bank holds a good buying signal, making it a good long-term investment for your portfolio.
Imperial Brands, IMBBY
Imperial Brands operates as a consumer goods company with very high growth potential. Imperial brands are considered good investment-proof stock during a recession. It holds four buy signals from market experts and market analysts forecast that the company’s earnings will grow by 7% per year in the next few years.
Bayer, BAYRY
The company’s stock price has increased by 5.73% in the last year, and it is now trading at a daily stock price of $15.24.
The company is looking for new projects and collaborations to help it develop and improve its market products and revenues. In its latest announcement, Bayer seeks to collaborate with Oerth Bio to develop the next generation of sustainable crop protection products.
Broadcom Inc.
Broadcom Inc. manufactures semiconductors and hardware. which makes it a good investment opportunity during a recession. The company’s stock price soared by 135% in the past 5 years. On top of that, it is exposed to a wide range of markets when its growth potential exceeds market expectations.
Abbott Laboratories, ABT
Considering its daily price range of $110.12–$111.62, ABT is not that expensive. The company has a market capitalization of $192.39 billion and a daily volume of 4,77 million.
Its annual revenues and other financial figures indicate that the company holds a strong growth potential and provides good investment returns for its shareholders.
Home Depot
Over the past 13 years, the company stock has soared from $25 to its current market price of $315. The company reached its all-time high of $400 in 2021.
In terms of growth and annual revenues, the company’s revenues were relatively stable. On top of that, despite the macroeconomic challenges in 2022, Home Depot delivered satisfying quarterly earnings.
Coca Cola
Coca-Cola shares soared by 7% last year when the S&P 500 index declined by more than 19%. The company’s current share price is $60 per share, which is considered relatively cheap for an iconic company like Coca-Cola.
The company holds a strong buy signal, and its financial reports demonstrate strong future growth potential.
Synopsys
For a recession proof stock investment, you should seek stocks with a solid rank and growth score. Plus, the stock is currently outperforming the market.
Synopsys stock rose by more than 7% in the past six months, beating market expectations and surpassing its competitors.
T-Mobile US Inc.
By delivering super-fast 5G speeds to its customers and successfully covering 260 million people with ultra-high 5G capacity, T-Mobile U.S. Inc. demonstrates its success as a company. The company outperformed and surpassed most of its competitors in the utility industry.
The company holds a good buy-and-hold sign, which reflects its future growth and, therefore, a higher investment return.
Kroger CO.
Market experts predict that 2023 will be a successful year for Kroger Co. and its shareholders. The company announced its emerging foods and consumer habits for this year and added new products to its product list.
The number of COVID cases has decreased significantly in the last year, encouraging people to make up for lost time and drive the company’s stock price to new highs in 2023.
Mcdonald’s, Inc.
If you want a solidly ranked and high-growth stock to invest in during a recession, Macdonald, Inc. is the right pick. This recession proof stock has demonstrated that its earnings and revenues won’t be affected by macroeconomic changes such as inflation and interest rates.
Mcdonald’s has a strong buy signal, which indicates that it might hit a new high in the next two years.
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Bottom Line on Recession Proof Stocks
Preparing your portfolio for a recession may prove key to its success in 2023. These high-quality stocks will help you do just that. Remember to always conduct your own research and invest for the long term. Your portfolio might just be the one that grows when everything else is crashing!
It is important to diversify your portfolio to protect it from market volatility. This means investing in various assets such as bonds, real estate, and commodities in addition to stocks. Additionally, focus on investing in companies with a strong financial track record, consistent revenue growth, and a competitive advantage in their industry. By following these steps and staying patient, you can weather a recession and potentially even come out on top in 2023.
