Key Takeaways:
- Dollarama benefits from consistent demand for affordable goods, making it a strong performer even during recessions.
- Netflix remains a leader in affordable entertainment, and analysts see 20% upside after the stock’s recent pullback.
- NextEra Energy is a stable utility and renewable energy leader, with revenue and earnings expected to grow 10% annually.
- Get accurate financial data on over 100,000 global stocks for free on TIKR >>>
Recession-proof stocks can be great investments when the economy slows down.
It’s very difficult to predict whether the economy will slow down, so we don’t know if a recession is coming. Still, it might be nice to have some stocks in your portfolio that you know will perform regardless of what’s going on in the economy.
Here are three recession-proof stocks that will keep making money no matter what happens with the economy.
All 3 of these stocks look fairly priced or undervalued today.
1: Dollarama (DOL)
Dollarama is a leading discount retailer in Canada, selling household essentials, groceries, and apparel at low prices.
During recessions, consumers seek more affordable shopping options, which helps discount retailers perform well in tough economic conditions.
Why Dollarama looks interesting:
- It dominates the discount retail market in Canada, giving it a strong competitive edge.
- The company benefits from economies of scale, leading to consistently seeing >20% returns on capital.
- Consistent demand for affordable goods should make Dollarama a reliable long-term stock.
Analysts think the stock is trading slightly above its fair value. This might not be a big concern for investors who strongly believe a recession is coming, or who are just looking to own a high-quality long-term compounder.
Dollarama thrives when consumers look for budget-friendly alternatives, making it a great stock for uncertain economic times.
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2: Netflix (NFLX)
Netflix is a leader in affordable entertainment, and streaming demand tends to remain steady even during recessions.
Consumers are more likely to cut back on expensive entertainment options before canceling their Netflix subscriptions, making it a resilient business model.
The stock has pulled back recently, creating a potential buying opportunity.
Analysts see about 20% upside for Netflix based on its current valuation.
With strong subscriber demand and affordable pricing, Netflix remains one of the most recession-proof stocks in the entertainment sector.
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3: NextEra Energy (NEE)
NextEra Energy is one of the largest renewable energy companies, specializing in wind and solar power while also operating a regulated utility business.
Electricity is a necessity, so utility stocks like NextEra tend to be stable, regardless of the economy.
Why NextEra Energy stands out:
- Revenue and earnings are expected to grow around 10% annually over the next three years.
- Analysts see about 15% upside for the stock today.
With its mix of renewable energy growth and a stable utility business, NextEra Energy is one of the most reliable stocks to own for any economic environment.
Find the best stocks to buy today with TIKR >>>
TIKR Takeaway
Recession-proof stocks provide stability and consistent returns even when the economy slows down.
Dollarama, Netflix, and NextEra Energy all have strong business models that allow them to keep making money in any market condition.
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. We aim to provide informative and engaging analysis to help empower individuals to make their own investment decisions. Neither TIKR nor our authors hold positions in any of the stocks mentioned in this article. Thank you for reading, and happy investing!
