#1 - Walmart (NYSE:WMT)
Leading off this list of recession-proof stocks is Walmart Inc. (NYSE: WMT). Walmart offers both consumer staples (i.e. the must-have products) and consumer discretionary products. The company’s business model focuses on everyday low prices. This makes it an appealing option for consumers looking to trade down and find a store where they can stretch their dollars further.
And historically, Walmart tends to outperform other retailers during tough economic times. Earnings growth is perhaps the single best predictor of stock price growth. So if you suspect a recession is near, you would do well by owning shares of WMT stock.
In the five years ending in May 2023, Walmart stock is up 81.99%. And the total return for investors is even larger when you add in any reinvested dividends. That being said, Walmart doesn’t pay the highest yielding dividend at just 1.49%. But the company has increased its dividend for 51 consecutive years which makes it a dividend king. And with a low beta of just 0.48 (anything below 1 is considered a low beta stock), Walmart is a clear recession-proof stock.
About Walmart
Walmart Inc engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications.
Read More - Current Price
- $81.96
- Consensus Rating
- Buy
- Ratings Breakdown
- 30 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $83.89 (2.4% Upside)
