Having a couple of recession-proof stocks in your portfolio at any time is always a great idea.
This way, you can reduce your exposure to bad market conditions and ensure that you’re protected in the event of such a situation. Market turbulence is inevitable, so it’s better to be prepared for it, and owning recession-proof stocks is how you do that.
- Recession-proof stocks protect investor portfolios from market turbulence, making investing in them a great idea regardless of current market conditions.
- Restaurant Brands is the parent company of fast-food chains like Popeyes and Burger King. It has repeatedly withstood tough market conditions.
- Meta Platforms is one of the most profitable companies on the planet and consistently generates substantial revenue.
This year has been very profitable for the stock market, and we can expect the momentum to continue till the end of the year. Regardless, investing in recession-resistant stocks could still be a smart play for investors. Aside from their ability to withstand harsh market conditions, these stocks also usually have great growth potential.
Joel Lim, a financial analyst at Trading.biz, has identified the two best recession stocks to buy right now.
Restaurant Brands
Restaurant Brands is an American holding company with many subsidiaries, including fast-food chains like Popeyes and Burger King. Other companies under the company include Tim Hortons, Firehouse Subs, and The TDL Group Corp.
Thanks to the number of impressive companies under its belt, Restaurant Brands has been able to consistently perform well on the financial front. According to its latest quarterly report, the company recorded a 4.2% year-over-year rise in comparable sales, an 8% growth in net restaurant revenue and an 11.6% increase in system-wide sales.
Its subsidiaries have also enjoyed a profitable year. For example, Burger King recorded a 3.9% year-over-year gain in comparable sales, outperforming the entire industry. Thanks to numbers like this, Restaurant Brands emerges as a no-brainer for investors interested in adding recession-resistant stocks to their portfolios.
Meta Platforms
Meta Platforms is another recession-resistant stock that investors should consider. As the parent company of the biggest social media platforms in the world, such as Facebook, Whatsapp, Instagram, and Threads, Meta Platforms is one of the most profitable companies in the world.
A quick glance at the company’s latest financial report tells the full picture. According to the report, Meta Platforms generated a revenue of $40.11 billion and $134.90 billion, a 25% and 16% increase year-over-year, respectively. It also saw significant increases in key metrics, such as net income, diluted earnings per share (EPS) and income from operations.
Another reason why investors ought to pay more attention to Meta Platforms is their involvement in some of the hottest industries, such as tech and AI. Meta Platforms is one of the companies at the forefront of the AI movement, and judging from Nvidia’s recent success in the stock market, Meta Platforms could very well experience similar growth.
The company has developed its own large language model (LLM) called Llama and has begun integrating it into its various social media platforms.
