August 8, 2022
Experts advise to buy Coke, Netflix shares during recession

The US economy may be in recession, but experts told The Post that those looking to invest can still make a profit with low-risk assets.

But which stocks should investors look into during an economic downturn?

Analysts told The Post that blue-chip stocks could be a relative bargain.

“Walmart may be the most recession-proof company ever,” Levon Galustian, an accountant at Oak View Law Group, a Jersey City-based law firm, told The Post.

“That’s because the focus of its businesses is on providing consumers with affordable access to necessities like food and personal care products.”

Galustian said rising inflation will deter people from shopping at expensive stores, but Walmart is an attractive option as there will always be demand for essentials.

“People often need to buy bread, toothpaste, pet food, and other basics,” he said.

Walmart and Marlboros

“And whether they’re going to the store or shopping on Walmart’s growing e-commerce website, they can also buy a few extra luxuries.”

One expert told The Post that investors should look into "defensive stock" Like Coca Cola.
One expert told The Post that investors should look into “defensive stocks” like Coca-Cola.
Reuters

Walmart shares closed up 1.8% on Friday.

Galustian also recommends Marlboro’s parent company, Altria, which is a surprise in light of statistics that show fewer Americans are smoking.

“Altria is the perfect stock to hold during a downturn because of its stability,” he said.

Galustian said Altria is an attractive option because it has “consistently increased its pricing, deducted costs and repurchased shares to increase its earnings per share.”

Altria closed at $43.86 per share on Friday. In the summer of 2017, it traded at an all-time high of more than $76 per share.

According to analysts, Netflix shares can be bought at basement rates.
According to analysts, Netflix shares can be bought at basement rates.
Reuters

Kraft Heinz, CVS and Coca-Cola

Robert R. Johnson, CEO of New York City-based Economic Index Associates, believes that investors should choose “defensive sectors whose firms are less dependent on the business cycle.”

“Food and beverage, household and personal care products, energy and utilities are non-cyclical or defensive in nature,” Johnson told The Post.

“People need to eat, brush their teeth, and heat their homes whether the economy is strong or weak.”

Kraft Heinz, makers of Heinz ketchup, is also a tempting stock for some people.
Kraft Heinz, makers of Heinz ketchup, is also a tempting stock for some people.
Reuters

That’s why he’s recommending Procter & Gamble — makers of Tide & Pampers — as well as defensive firms like Kraft Heinz, United Health Group, Coca Cola and CVS Health.

Josh Anser, host of the online show The Trading Fraternity, told The Post that he “endorses blue chip tech stocks that are offering some great discounts right now.”

Netflix, Airbnb and Pharma

He mentioned Airbnb, Netflix and pharmaceutical research firm AbbVie.

Investors are also encouraged "buy dip" On tech stocks like Airbnb.
Investors are also encouraged to “buy the dip” on tech stocks like Airbnb.
Reuters

“Just make sure you scale up little by little and don’t fire all your ammo at once,” he said.

“In times of inflation, utility stocks become a great investment option,” Riggs Eckelberry, founder and CEO of Florida-based OriginClear, told The Post.

“They are relatively low-risk and remain stable regardless of the current economy or market cycle, making them desirable for any diversified portfolio.”

Eckelberry said it would take a look at water-related stocks such as Canada-based Stantec Inc. and Pentair.

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