7 Stocks That Soar in a Recession

Given the beating the markets took on Thursday and Friday which has in turned heightened recession fears, I thought this would be a good time to resurrect this April article about the 7 best stocks to have in a recession.  Keep enjoying the weekend.  The heat is coming.  

APRIL 21, 2022 Invested Advice, rankings and stock market news for investors.

Good morning, investors. Markets are mixed, and Tesla shows strong growth in its latest earnings report. Highlights of today's newsletter include our market insights plus these new articles: 7 Stocks That Soar in a Recession 6 Materials Stocks to Buy for Dividend Income 7 Monthly Dividend Stocks With High Yields TODAY'S FEATURED STORY 7 Stocks That Soar in a Recession A recent yield curve inversion, the economic stress from the conflict in Ukraine and high inflation have investors concerned about a potential U.S. recession coming at some point in the next year or two. When the U.S. economy tanks, even most high-quality stocks get dragged down with it. However, during the past two U.S. recessions in 2008 and 2020, there were still a handful of stocks that significantly outperformed the S&P 500. These recession-resistant stocks can help you play defense if a bear market does come into play. Here are seven stocks that CFRA Research analysts recommend that outperformed the S&P 500 in both 2008 and 2020: Synopsys Inc. (ticker: SNPS). Synopsys provides a platform on which engineers can design and test semiconductor chips and other software applications. The global semiconductor industry is likely a secular growth market, so demand for chip testing and design services is constant – even during an economic downturn. Analyst John Freeman says Synopsys has an attractive valuation and a strong fundamental outlook over the short and long term. He says Synopsys is a major beneficiary from the snowballing complexity of electronic design automation, which made up about 55% of the company's total revenue in 2021. CFRA has a "strong buy" rating and a $424 price target for SNPS stock, which closed at $306.33 on April 19. Target Corp. (TGT). It's no surprise that discount retailer Target outperformed during each of the past two recession years. Americans can't go without groceries when times get tough, but they can save elsewhere by bargain hunting at Target. Analyst Arun Sundaram says investors should see Target as a core, long-term stock holding given its strong positioning in the next-generation omnichannel retail market. Sundaram says Target is on track to continue to gain market share and deliver mid-single-digit revenue and operating income growth and high-single-digit earnings per share growth over the next several years. CFRA has a "buy" rating and a $288 price target for TGT stock, which closed at $246.05 on April 19. Click here to continue reading.