7 Stocks That Outperform in a Recession | Investing – U.S News & World Report Money

In times of economic downturn, certain stocks have shown resilience and even outperformed the market. Here are seven stocks that have historically done well during recessions.

1. Consumer staples companies like Procter & Gamble and Coca-Cola tend to perform well during economic downturns. These companies offer essential products that people continue to purchase regardless of the state of the economy.

2. Healthcare stocks, such as Johnson & Johnson and Pfizer, also tend to be more stable during recessions. Healthcare is a necessity, so these companies often see consistent demand for their products and services.

3. Utility stocks, like NextEra Energy and Dominion Energy, are considered defensive stocks because they provide essential services that people need even in tough economic times. These companies typically have stable cash flows and dividends.

4. Technology companies like Microsoft and Apple have also shown resilience during recessions. These companies often have strong balance sheets and recurring revenue streams, which help them weather economic downturns.

5. Discount retailers like Walmart and Costco tend to perform well during recessions as consumers look for ways to save money. These companies offer everyday essentials at affordable prices, making them attractive to budget-conscious consumers.

6. Telecommunication companies like Verizon and AT&T are another safe bet during economic downturns. These companies provide essential services like phone and internet access, which consumers are unlikely to cut back on even during tough times.

7. Finally, dividend-paying stocks, such as Johnson & Johnson and Coca-Cola, can be a good option during recessions. These stocks provide a steady income stream through dividends, which can help offset any potential losses in the stock market.

While past performance is not indicative of future results, these seven stocks have a history of outperforming during recessions. Investors looking for stability and resilience in their portfolios may want to consider adding some of these stocks to their holdings.