3 Recession-Proof Stocks to Buy Now

Some investors sing in the rain. They own all-weather stocks, taking stakes in companies that thrive well in good times and bad…

Netflix (NASDAQ:NFLX)O’Reilly Automotive (NASDAQ:ORLY), and Target (NYSE:TGT) are some of the best recession-proof stocks to buy now. Let’s pull up those galoshes to see what makes them special.


The world’s leading premium streaming service may seem like an odd place to start a list of recession-proof stocks, but let’s roll the tape. We officially entered a recession last February, and Netflix came through with a market-thumping 67% return.

“No fair,” you say.

It was a pandemic. We were stuck at home. Tiger King was comfort food. Sure, but let’s rewind to 2008. The Great Recession took a cruel toll on investors. The S&P 500 plummeted 38% that year, weighed down by the subprime lending crisis. Netflix shares still managed to rise 12% in that environment.

Netflix may not be a cheap stock based on any valuation measuring stick, but it thrives as a company when the economy is at its worst. In 2008 we turned to DVD rentals by mail over the luxury of going to the movies. A dozen years later the rapidly expanding digital catalog at Netflix is pulling ahead from the competition for your living room’s binge-viewing experience.

O’Reilly Automotive

A retailer of automotive parts is also not the first thing you think about when you’re in a recession, especially after the past year when the pandemic kept our cars in park. However, O’Reilly Automotive has been an all-weather beast.

Even in 2020, a year in which car ownership seemed less relevant, O’Reilly posted three consecutive quarters of double-digit sales growth. The head-turning stat here is that O’Reilly has now come through with 28 consecutive years of positive comps.

Why is the gear stick for the 5,594-store chain always in drive? When the going is good folks buy new cars and O’Reilly offers the accessories to keep fresh rides looking good. When the economy’s not…

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