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