Futures
Access hundreds of perpetual contracts
TradFi
Gold
One platform for global traditional assets
Options
Hot
Trade European-style vanilla options
Unified Account
Maximize your capital efficiency
Demo Trading
Introduction to Futures Trading
Learn the basics of futures trading
Futures Events
Join events to earn rewards
Demo Trading
Use virtual funds to practice risk-free trading
Launch
CandyDrop
Collect candies to earn airdrops
Launchpool
Quick staking, earn potential new tokens
HODLer Airdrop
Hold GT and get massive airdrops for free
Launchpad
Be early to the next big token project
Alpha Points
Trade on-chain assets and earn airdrops
Futures Points
Earn futures points and claim airdrop rewards
More
3 Recession-Proof Stocks to Buy Before the Next Market Crash
These are trying times for growth investors, so maybe it’s a good time to be trying something different. You know those all-weather defensive stocks that many have been rotating into these days? Shouldn’t you consider at least some exposure to businesses that can hold up better than most when the next market crash comes around?
Costco (COST 0.53%), AT&T (T +1.28%), and Coca-Cola (KO 0.55%) are recession-proof for very different reasons. All three are still stocks that you might want to dig into before the market buckles. Let’s take a closer look.
Image source: Getty Images.
Costco
Kicking off a list of safe stocks with Costco might seem obvious and ludicrous at the same time. On the one hand, Costco is the country’s undisputed top dog in warehouse clubs. If the stock market starts to buckle, there’s a good chance it’s happening because the economy is wobbly. Costco eats that opportunity up.
Even if you’re not a Costco member, you know the chain that sells bulk-sized essentials at razor-thin margins. The annual fees it collects account for most of its profit. Good luck beating that $1.50 hot dog and soft drink combo. What you might not know is that it has failed to deliver positive annual revenue growth just once in the last 33 years. And even during the recessionary 2009, when the chain proved mortal, the top line only saw a 1.5% dip.
Expand
NASDAQ: COST
Costco Wholesale
Today’s Change
(-0.53%) $-5.14
Current Price
$974.78
Key Data Points
Market Cap
$432B
Day’s Range
$970.41 - $988.79
52wk Range
$844.06 - $1067.08
Volume
2.3K
Avg Vol
2.2M
Gross Margin
12.93%
Dividend Yield
0.53%
Costco is obvious, but I also mentioned that it was ludicrous. A safe stock is also typically attractively priced. Costco stock is not cheap.
The warehouse club giant is trading for more than 50 times its trailing earnings. It’s not a fast-growing retailer. It has posted double-digit annual top-line growth just twice in the last 13 fiscal years. Its 0.5% dividend yield isn’t going to turn heads.
However, Costco’s reliability is worth a premium. I can’t recall the last time Costco was textbook cheap. The price of admission is a premium, and – like the items it sells – you just hope it hasn’t been marked up by much.
Expand
NYSE: T
AT&T
Today’s Change
(1.28%) $0.35
Current Price
$27.76
Key Data Points
Market Cap
$194B
Day’s Range
$27.23 - $27.95
52wk Range
$22.95 - $29.79
Volume
45
Avg Vol
42M
Gross Margin
42.93%
Dividend Yield
4.00%
AT&T
Turning from retail to that computer in your pocket, AT&T is one of the two largest wireless carriers in the country. The all-weather appeal here is that you need your phone. You can cancel streaming subscriptions, skip a few coffeehouse lattes, and entertain yourself at home to save some dough. You’re not giving up your mobile connection to the world.
AT&T’s 4% dividend is also the highest of the three on this list. This doesn’t mean that it’s a lock to coast through the next market crash. Folks can turn to cheaper plans from discount providers. AT&T has also seen its revenue decline in four of the past six years, even if a pair of spin-offs weighed on that front.
The stock is cheap. It’s trading for 9 times trailing earnings. After its strongest top-line growth in six years, analysts see the positive revenue gains continuing through at least the next couple of years.
Expand
NYSE: KO
Coca-Cola
Today’s Change
(-0.55%) $-0.42
Current Price
$75.55
Key Data Points
Market Cap
$325B
Day’s Range
$75.53 - $76.45
52wk Range
$65.35 - $82.00
Volume
18K
Avg Vol
17M
Gross Margin
61.75%
Dividend Yield
2.73%
Coca-Cola
Coca-Cola isn’t just pop royalty. It’s also a Dividend King, one of the dozens of U.S. stocks that have delivered annual payout hikes for at least 50 years. Coca-Cola’s streak is up to 64 with last month’s boost.
Its signature soft drinks are cheap indulgences, a fitting treat even when the going gets rough. It’s a high-margin business, essentially selling its syrups and other essentials to bottlers and distributors that tackle the grunt work. Folks get thirsty. The world needs hydration. As the old jingle goes, Coke is it.