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5 Recession-Proof Stocks to Buy Amid Coronavirus-Led Job Crisis
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The coronavirus pandemic has wreaked havoc on the global economy with governments ordering lockdown and social distancing to contain the spread of the disease. This weighed heavily on the labor market at large. The pandemic has forced businesses to remain closed, pushing some to resort to mass layoffs.
On Apr 9, the Department of Labor reported that more than 6.6 million people filed for jobless claims in the week ending Apr 4. The coronavirus-led shutdowns deeply affected the majority of nearly 21 million jobs U.S. employers had added post the financial crisis recovery in 2010.
In fact, the Department of Labor is due to report jobless claims for the week ending Apr 11, the consensus estimates for which is approximately 5.3 million. The figures are still significantly high and looking at the virus’ rate of spread and unavailability of a cure yet, it may take time for the economy to regain its mojo.
The virus has infected nearly 2 million people worldwide and disrupted supply chains, leading the global economy into a more severe recession than that of 2008’s financial crisis. The International Monetary Fund (IMF) recently stated that the global economy is anticipated to decline “sharply” by 3% in 2020. An IMF report estimates “cumulative loss to global GDP over 2020 and 2021” from the coronavirus crisis to be nearly $9 trillion.
There are certain stocks that do well even during economic downturns. These stocks have non-cyclical business and stay in constant demand, irrespective of market volatility. Hence, the companies’ sales are not dependent on larger market’s activity.
Given high market volatility, stocks from defensive sectors like utilities, consumer staples and healthcare make good investments. However, there are certain other stocks that are also recession-proof like vice stocks that include players from thealcohol, tobacco, marijuana and gambling industries. These businesses have stable demand irrespective of market gyrations, and people buy them regardless of the economic climate.
5 Stocks to Buy
We have shortlisted five recession-proof stocks that carry a Zacks Rank #1 (Strong Buy) or #2 (Buy) and are poised to return well on investment.
American States Water Company (AWR - Free Report) provides water and electric services to residential, industrial, and other customers. The company’s expected earnings growth rate for the current year is 4.7% against the Zacks Utility - Water Supply industry’s projected earnings decline of 4.3%.
The Zacks Consensus Estimate for the company’s current-year earnings has been revised 3.2% upward over the past 60 days. American States Water Company sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Ensign Group, Inc. (ENSG - Free Report) provides health care services in the post-acute care continuum and other ancillary businesses. The company’s expected earnings growth rate for the current year is 13.8% against the Zacks Medical - Nursing Homes industry’s projected earnings decline of 5.7%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 3.2% upward over the past 60 days. The Ensign Group sports a Zacks Rank #1.
Grocery Outlet Holding Corp. (GO - Free Report) owns and operates a chain of grocery stores in the United States.The company’s expected earnings growth rate for the current year is 12.7% compared with the Zacks Consumer Products - Staples industry’s projected earnings growth of 7.7%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 9.9% upward over the past 60 days. Grocery Outlet sports a Zacks Rank #1.
Nintendo Co., Ltd. (NTDOY - Free Report) develops, manufactures, and distributes electronic entertainment products. The company’s expected earnings growth rate for the current year is 18.1% compared with the Zacks Toys - Games - Hobbies industry’s projection of 0%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 11.6% upward over the past 60 days. Nintendo sports a Zacks Rank #1.
Aurora Cannabis Inc. (ACB - Free Report) produces and distributes medical cannabis products.The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Medical - Products industry’s projected earnings growth of 4.7%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 2.1% upward over the past 30 days. Aurora Cannabis carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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5 Recession-Proof Stocks to Buy Amid Coronavirus-Led Job Crisis
The coronavirus pandemic has wreaked havoc on the global economy with governments ordering lockdown and social distancing to contain the spread of the disease. This weighed heavily on the labor market at large. The pandemic has forced businesses to remain closed, pushing some to resort to mass layoffs.
On Apr 9, the Department of Labor reported that more than 6.6 million people filed for jobless claims in the week ending Apr 4. The coronavirus-led shutdowns deeply affected the majority of nearly 21 million jobs U.S. employers had added post the financial crisis recovery in 2010.
In fact, the Department of Labor is due to report jobless claims for the week ending Apr 11, the consensus estimates for which is approximately 5.3 million. The figures are still significantly high and looking at the virus’ rate of spread and unavailability of a cure yet, it may take time for the economy to regain its mojo.
The virus has infected nearly 2 million people worldwide and disrupted supply chains, leading the global economy into a more severe recession than that of 2008’s financial crisis. The International Monetary Fund (IMF) recently stated that the global economy is anticipated to decline “sharply” by 3% in 2020. An IMF report estimates “cumulative loss to global GDP over 2020 and 2021” from the coronavirus crisis to be nearly $9 trillion.
Recession-Resistant Stocks Safe Bets Amid Downturn
There are certain stocks that do well even during economic downturns. These stocks have non-cyclical business and stay in constant demand, irrespective of market volatility. Hence, the companies’ sales are not dependent on larger market’s activity.
Given high market volatility, stocks from defensive sectors like utilities, consumer staples and healthcare make good investments. However, there are certain other stocks that are also recession-proof like vice stocks that include players from thealcohol, tobacco, marijuana and gambling industries. These businesses have stable demand irrespective of market gyrations, and people buy them regardless of the economic climate.
5 Stocks to Buy
We have shortlisted five recession-proof stocks that carry a Zacks Rank #1 (Strong Buy) or #2 (Buy) and are poised to return well on investment.
American States Water Company (AWR - Free Report) provides water and electric services to residential, industrial, and other customers. The company’s expected earnings growth rate for the current year is 4.7% against the Zacks Utility - Water Supply industry’s projected earnings decline of 4.3%.
The Zacks Consensus Estimate for the company’s current-year earnings has been revised 3.2% upward over the past 60 days. American States Water Company sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Ensign Group, Inc. (ENSG - Free Report) provides health care services in the post-acute care continuum and other ancillary businesses. The company’s expected earnings growth rate for the current year is 13.8% against the Zacks Medical - Nursing Homes industry’s projected earnings decline of 5.7%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 3.2% upward over the past 60 days. The Ensign Group sports a Zacks Rank #1.
Grocery Outlet Holding Corp. (GO - Free Report) owns and operates a chain of grocery stores in the United States.The company’s expected earnings growth rate for the current year is 12.7% compared with the Zacks Consumer Products - Staples industry’s projected earnings growth of 7.7%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 9.9% upward over the past 60 days. Grocery Outlet sports a Zacks Rank #1.
Nintendo Co., Ltd. (NTDOY - Free Report) develops, manufactures, and distributes electronic entertainment products. The company’s expected earnings growth rate for the current year is 18.1% compared with the Zacks Toys - Games - Hobbies industry’s projection of 0%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 11.6% upward over the past 60 days. Nintendo sports a Zacks Rank #1.
Aurora Cannabis Inc. (ACB - Free Report) produces and distributes medical cannabis products.The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Medical - Products industry’s projected earnings growth of 4.7%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 2.1% upward over the past 30 days. Aurora Cannabis carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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