Key Takeaways:
- PepsiCo owns globally recognized brands and has raised its dividend for over 50 straight years. Analysts see about 10% upside for the stock today.
- Brown-Forman has strong brand loyalty in the alcohol industry, and analysts believe the stock could go up about 17% today.
- Clorox is a household staple with ultra-defensive qualities. Due to a recent pullback, analysts see about 13% upside for the stock today.
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Investors are increasingly concerned that the U.S. could enter into a recession this year due to President Trump’s aggressive trade policies, including significant tariffs on imports from China, Mexico, and Canada.
Regardless of political views, here are 3 recession-proof stocks that have historically held up well during recessions. Analysts think all 3 of these stocks are undervalued today.
1: PepsiCo (PEP)
PepsiCo owns massive food and beverage brands, including Lay’s, Doritos, Gatorade, Quaker Oats, and Tropicana. With a diverse product lineup and global reach, PepsiCo generates consistent revenue, even in recessions.
The company also has a long history of rewarding shareholders, including increasing its dividend for over 50 consecutive years. That stability makes it a reliable choice for long-term investors.
Why Pepsi looks interesting today:
- PepsiCo owns a strong portfolio of globally recognized food and beverage brands.
- The stock trades near its lowest valuation multiple in the past 5 years.
- Analysts currently see about 10% upside for the stock today.
With a historically low valuation and a strong dividend history, PepsiCo remains a dependable stock for long-term investors.
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2: Brown-Forman (BF.B)
Brown-Forman is one of the largest spirits companies in the world, owning well-known alcohol brands like Jack Daniel’s, Woodford Reserve, and Herradura Tequila.
Alcohol tends to be a recession-proof industry, as consumers continue to buy their favorite drinks regardless of economic conditions. Premium brands like Jack Daniel’s also have strong customer loyalty, giving Brown-Forman an edge over competitors.
Why Brown-Forman looks like a good recession-proof stock today:
- The company owns premium alcohol brands with strong global recognition.
- Alcohol demand remains steady during downturns, making the business resilient.
- Analysts see about 15% upside as the company returns to revenue growth.
After a steep decline of nearly 50% over the past 3 years, Brown-Forman looks like a potential turnaround play as its revenue starts to rebound.
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3: Clorox (CLX)
Clorox is a leader in the cleaning products industry and owns top household brands that consumers continue to buy in any economy. Its portfolio includes Clorox bleach, Glad trash bags, and Burt’s Bees.
The stock has fallen more than 10% in the past six months, but Clorox is cutting costs and raising prices, which analysts estimate should help improve profitability going forward.
Why a boring stock like Clorox could be exciting:
- Clorox owns multiple category-leading brands in the cleaning and household products space.
- The company is implementing cost-cutting measures to boost margins.
- Analysts think the stock has about 13% upside today.
As an ultra-defensive business with a strong market position, Clorox could be a solid investment for investors looking for stability.
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TIKR Takeaway
Recession-proof stocks can make for good investments in uncertain markets.
PepsiCo, Brown-Forman, and Clorox all operate in recession-resistant industries and look slightly undervalued today.
The TIKR Terminal offers industry-leading financial data on over 100,000 stocks and was built for investors who think of buying stocks as buying a piece of a business.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
