With recession-proof stocks, this approach is the football equivalent of running the so-called jumbo package. Here, the idea is to get a few critical yards to move the sticks or get into the endzone. However, like the last-mile problem, those yards are often difficult to get.
So, what to do? Simple – just grab your biggest, meanest players and run the ball up the middle. It’s not elegant, it doesn’t involve any chicanery and it’s rather predictable. As coaches across all sporting disciplines love to say, it’s about who wants it more.
Similarly, on Wall Street, stalwart enterprises can run over a wall of worries. You’re probably not going to get rich off these ideas. But you may sleep easier at night. With that, below are enticing ideas for recession-proof stocks to buy.
Iron Mountain (IRM)
Structured as a real estate investment trust or REIT, Iron Mountain (NYSE:IRM) is a global leader in information management services. Founded in 1951, the company’s portfolio includes more than 240,000 customers worldwide. Primarily, it focuses on records storage, which includes both the digital and “analog” realms.
While it’s a boring enterprise in most contexts, this characteristic makes IRM one of the recession-proof stocks to buy. Further, the underlying relevance has seen a dramatic shift in Iron Mountain. Since the start of the year, IRM stock gained over 15% of equity value. Over the past 52 weeks, it’s up more than 51%. Likely, the rise and intensity of cyberattacks have forced many enterprises to reexamine data security needs.
Notably, Iron Mountain delivers the goods financially. Last fiscal year, the company’s average positive earnings surprise landed at 9.48%. For the current fiscal year, experts believe that revenue will reach $6.09 billion. If so, that’s an 11.1% increase from last year’s tally of $5.48 billion.
Kraft Heinz (KHC)
As one of the companies in Warren Buffett’s portfolio – via his conglomerate Berkshire Hathaway (NYSE:BRK-B) – Kraft Heinz (NASDAQ:KHC) makes for an intriguing idea for recession-proof stocks. After all, the Oracle of Omaha knows a thing or two about surviving bear market cycles. That’s what makes him a true investing legend rather than those fly-by-night market wizards.
Of course, the main catalyst here is the underlying business. Through the main brand and subsidiaries, Kraft Heinz manufactures and markets food and beverage products. It’s one of the world’s top food manufacturers, affording it tremendous relevance during rough times. After all, everyone has to eat. And as a grocery-store product, KHC could benefit from the trade-down effect as households eschew going out to cooking in.
For the current fiscal year, experts are looking for sales to reach $26.85 billion. That’s only a modest lift from last year’s tally of $26.64 billion. However, the aforementioned trade-down effect could boost demand. As well, the company offers a generous forward dividend yield of 4.38%.
Portland General Electric (POR)
When it comes to recession-proof stocks to buy, I’m a big fan of utilities. Primarily, this sector benefits from a natural monopoly. Companies in the ecosystem are entrenched as would-be competitors face steep barriers to entry, including high regulatory hurdles. Those who are interested in the space should consider Portland General Electric (NYSE:POR). It’s not that well known, covering communities in the state of Oregon. But that’s also why it’s appealing.
With costs of living rising in popular metropolitan powerhouses across the country, many millennials are moving out. Portland, Oregon happens to be one of the top cities that young people are gravitating toward. In other words, Portland General is positioned where the money will be, not just where it is. That makes it a viable idea for recession-proof stocks.
Now, the financial performance last year was very much hit or miss. And the misses were quite bad. However, for the current fiscal year, analysts are anticipating earnings per share of $3.07, above last year’s $2.38. Further, revenue could land at $3.03 billion, about 4% higher than last year’s print of $2.92 billion.
Combined with a 4.5% forward dividend yield, POR stock should be on your radar.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.