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10 "Recession Proof" Stocks That Will Thrive During The Next Downturn - 1 of 10

 
 

#1 - Wal-Mart (NYSE:WMT)

WalMart (WMT) is one of those companies that keeps it simple, advertising and delivering on “Everyday low prices.” In robust economies, the retailer may be “discounted” by analysts as it finds its margins squeezed, but the company consistently shines during recessions. The company benefits from its chain of Sam’s Club stores which cater to consumers who buy in bulk. These stores tend to thrive as consumers look for the value of bulk purchases to make their dollars stretch. In the past year, WalMart has been actively increasing its e-commerce efforts in response to the popularity of Amazon, and analysts are seeing those efforts begin to pay off. A strong e-commerce presence would provide additional support for WalMart should the economy move into recession.

In 2008, the company posted a 7.2 percent revenue gain and a stock price increase of 20%, beating the S&P 500 by 58.5%. And WalMart was one of the few companies to increase their dividend yield during 2008, despite warnings from Wall Street. This was particularly impressive since some businesses were cutting their dividends altogether. The current consensus opinion of analysts is a hold. Despite this, WalMart’s stock is expected to achieve 8.6 percent growth in 2018.

About Walmart

Walmart Inc engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications. Read More 
Current Price
$90.44
Consensus Rating
Moderate Buy
Ratings Breakdown
29 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$91.88 (1.6% Upside)

 

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