3 Stocks That Are Recession-Proof: Intel. Cisco. Coca-Cola. These are three of the recession-proof stocks that should be on your watch.
In August, the trade war almost plunged the world into a recession. Amidst the fears, the U.S. Treasury yield inverted for the first time in ten years. Consequently, many market watchers have been looking for stocks that could possibly serve as hedges against a recession.
And against this uncertainty, it appears technology stocks could provide some security. Of them, Intel and Cisco could make good choices. Plus, Coca-Cola, the traditional recession hedge, is still effective in this regard.
Hence, the following are three of the stocks to protect you from the irrational exuberance that can come along with a recession.
Intel (Nasdaq: INTC)
Even though Intel is down by over 1% year to date, the stock has been showing strength relative to the broader market. In fact, in August, it held out on the $46 mark which appeared to be its level of support. The stock, however, ended the last trading session on September 10 at $51.82.
In 2018, Intel reported approximately $70 billion in annual revenue. The company also recorded an operating income of $23 billion, with around $127 billion in total assets. Evidently, Intel appears to be in a strong financial position in light of this.
Cisco (Nasdaq: CSCO)
For the most part of August, Cisco was in a consolidation mood. However, Cisco has not been alone in this; the S&P too has been range-bound for months over months. Nevertheless, the company is an undeniable treasure that you should buy to protect yourself against the next downturn.
For the 2017 fiscal year, Cisco recorded earnings of approximately $100 million, annual revenue of $49 billion, representing a 2.8% rise from the previous comparable financial year. By September 2018, the company’s shares were trading at almost $50 resulting in its market capitalisation going beyond the $200 billion mark.
Cisco is a top dividend payer and also a good stock to buy despite fears of recession. And even if no recession hits, this stock is currently trading lower and could be a good stock to buy. Hence, with Cisco, you will get a bargain, with a high appreciation upside, and you will also get some solid dividends. You win.
The Coca-Cola Company (NYSE: KO)
Coca-Cola has been consistent in its performance in its over 100 years of existence. Now a household global name in over 200 countries, the company has grown through its long history of acquisitions. In 2018, it generated over $30 billion in revenue.
If you are very bullish on a recession, then you should get yourself some Coca-Cola. Traditionally, the stock is recession-proof and also has a reasonable dividend yield. In the real sense, like Cisco and Intel, Coca-Cola is a good buy irrespective of fears of a recession or not.
The company recorded an EPS growth of 41.50% over the past year alone. And in the past twelve months, its stock has been up 16.64%. For the last quarter alone, the stock appreciated by 7.26%. Coca-Cola (NYSE: KO) has a market capitalisation of $213 billion, with a current share price of $49.21.