We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Coronavirus Ravages US Employment Boom: 5 Safe Stocks to Buy
Read MoreHide Full Article
In the past three months, the novel coronavirus has crept into nearly every nook and corner of the world and wrecked havoc on the global economy. With cities under lockdown and businesses closed, there have been massive layoffs. In fact, the U.S. economy has erased the gains in jobs made since the Great Recession. And now many economists expect a grimmer outlook for the U.S. economy.
To put things into perspective, the United States has currently lost around 22 million jobs and many are expecting the unemployment rate to hit 17%, way more than what it was during the time of the Great Recession.
What’s more, another 4.416 million people are expected to file for jobless claims in the week ending Apr 18. This brings the total job loss due to coronavirus outbreak to around 26 million.
Why Invest in Recession-Proof Stocks?
Recession-proof stocks characteristically deal in on-cyclical products or services. Hence, they are in constant demand, irrespective of market gyrations. With sales independent of the broader market’s activities, these stocks are not only stable during steep declines but also make good investment vehicles in the portfolio.
Hence, while seeking recession-resistant stocks, one should look for the following characteristics: the company provides critical services or sells consumer essentials, for example medical or consumer staples. Does the business sell proprietary or specialized products like alcohol, tobacco, marijuana and gambling? Investors can also look for companies that provides mandatory products or services like utilizes (electricity, water, gas).
5 Recession Resistant Stocks
Businesses are facing the wrath of coronavirus and given the surge in jobless claims shaking the backbone of the U.S. economy, investment in recession-proof stocks can shield investors’ portfolio. Here are five such stocks that flaunt a Zacks Rank #1 (Strong Buy) or #2 (Buy) and are poised to return well on investment.
Chesapeake Utilities Corporation (CPK - Free Report) engages in the distribution of natural gas. The company’s expected earnings growth rate for the current year is 9.6% compared with the Zacks Utility - Gas Distribution industry’s projected earnings growth of 3.9%.
The Zacks Consensus Estimate for the company’s current-year earnings has been revised 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. This Zacks Rank #1 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 Clorox Company (CLX - Free Report) manufactures and markets consumer and professional products. The company’s expected earnings growth rate for the current year is 2.9% against the Zacks Soap and Cleaning Materials industry’s projected earnings decline of 1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 5% upward over the past 60 days. The Ensign Group flaunts a Zacks Rank #1.
The J. M. Smucker Company (SJM - Free Report) manufactures and markets branded food and beverage products. The company’s expected earnings growth rate for the current year is 1.2% against the Zacks Food - Miscellaneous industry’s projected earnings decline of 4.4%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 2.9% upward over the past 60 days. The Ensign Group 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 11.7% against the Zacks Toys - Games - Hobbies industry’s projected earnings decline of 1.7%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 5.5% upward over the past 60 days. Nintendo carries a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Coronavirus Ravages US Employment Boom: 5 Safe Stocks to Buy
In the past three months, the novel coronavirus has crept into nearly every nook and corner of the world and wrecked havoc on the global economy. With cities under lockdown and businesses closed, there have been massive layoffs. In fact, the U.S. economy has erased the gains in jobs made since the Great Recession. And now many economists expect a grimmer outlook for the U.S. economy.
To put things into perspective, the United States has currently lost around 22 million jobs and many are expecting the unemployment rate to hit 17%, way more than what it was during the time of the Great Recession.
What’s more, another 4.416 million people are expected to file for jobless claims in the week ending Apr 18. This brings the total job loss due to coronavirus outbreak to around 26 million.
Why Invest in Recession-Proof Stocks?
Recession-proof stocks characteristically deal in on-cyclical products or services. Hence, they are in constant demand, irrespective of market gyrations. With sales independent of the broader market’s activities, these stocks are not only stable during steep declines but also make good investment vehicles in the portfolio.
Hence, while seeking recession-resistant stocks, one should look for the following characteristics: the company provides critical services or sells consumer essentials, for example medical or consumer staples. Does the business sell proprietary or specialized products like alcohol, tobacco, marijuana and gambling? Investors can also look for companies that provides mandatory products or services like utilizes (electricity, water, gas).
5 Recession Resistant Stocks
Businesses are facing the wrath of coronavirus and given the surge in jobless claims shaking the backbone of the U.S. economy, investment in recession-proof stocks can shield investors’ portfolio. Here are five such stocks that flaunt a Zacks Rank #1 (Strong Buy) or #2 (Buy) and are poised to return well on investment.
Chesapeake Utilities Corporation (CPK - Free Report) engages in the distribution of natural gas. The company’s expected earnings growth rate for the current year is 9.6% compared with the Zacks Utility - Gas Distribution industry’s projected earnings growth of 3.9%.
The Zacks Consensus Estimate for the company’s current-year earnings has been revised 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. This Zacks Rank #1 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 Clorox Company (CLX - Free Report) manufactures and markets consumer and professional products. The company’s expected earnings growth rate for the current year is 2.9% against the Zacks Soap and Cleaning Materials industry’s projected earnings decline of 1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 5% upward over the past 60 days. The Ensign Group flaunts a Zacks Rank #1.
The J. M. Smucker Company (SJM - Free Report) manufactures and markets branded food and beverage products. The company’s expected earnings growth rate for the current year is 1.2% against the Zacks Food - Miscellaneous industry’s projected earnings decline of 4.4%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 2.9% upward over the past 60 days. The Ensign Group 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 11.7% against the Zacks Toys - Games - Hobbies industry’s projected earnings decline of 1.7%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 5.5% upward over the past 60 days. Nintendo carries a Zacks Rank #2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>