3 Recession Resistant Stocks as Tariff Battles Ramp Up Risk

Core Viewpoint - The potential for a recession is increasing due to tariff policies, which could lead to a worldwide economic slowdown as prices rise significantly [1][2]. Group 1: Costco Wholesale - Costco operates in the consumer staples sector, focusing on essential products, which typically perform better during recessions [3]. - The company's revenue forecast for the next 12 months is $1,024.03, indicating a 6.29$963.41 [4]. - Food accounts for approximately 54% of Costco's total revenue, with gasoline contributing an additional 12% [4]. - Costco's Kirkland Signature brand is priced about 20% lower than national brands, providing a competitive edge during economic downturns [5]. - Despite exposure to non-food items (26% of revenue), Costco's strong membership renewal rate of 91% during the pandemic helps mitigate risks [6]. Group 2: Dollar General - Dollar General is also positioned in the consumer staples sector, focusing on low-cost essentials, which is advantageous in recessionary periods [7]. - The 12-month stock price forecast for Dollar General is $94.75, reflecting a 6.33$89.11 [8]. - Consumables make up 82% of Dollar General's total revenue, including essential items like food and personal hygiene products [9]. - The company's strategy of maintaining low price points makes it a favorable option for consumers during tough economic times [10]. Group 3: TJX Companies - TJX operates in the consumer discretionary sector but employs an off-price strategy, selling brand-name goods at significant discounts [11]. - The 12-month stock price forecast for TJX is $135.76, indicating a 5.88$128.22 [12]. - TJX has historically outperformed during recessions, with shares rising 30% in the 2001 recession while the S&P 500 fell [13]. - Analysts have identified TJX as a top pick for potential recession resilience, despite underperforming the S&P 500 in 2020 [14].