The US stock market boasts of tech, pharma, military, and oil giants that generate billions in revenue year-on-year. When the markets face a downturn, these stocks are the first to come crashing down as they’re not recession-proof. They’re subjected to significant and drastic changes and lose billions’ worth of investments in a jiffy. Even long-term holders burn a considerable hole in their pockets when the downturn arrives as finding a recession-proof US stock is hard.
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In this article, we will highlight one recession-proof US stock that has stayed resilient during the market downturns. It has historically attracted investments during economic uncertainties and its balance sheet and earnings have soared. Taking an entry position now could be beneficial as calls for a recession are doing the rounds due to tariffs and trade wars.
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Walmart (WMT): Recession-Proof US Stock Has Stood the Test of Time
When the markets came crashing in 2008 leading to losses worth trillions of dollars, Walmart saw a surge in price. It cemented itself as a recession-proof US stock that can stay resilient when the markets come knocking down. So why and how did this happen? Well, Walmart is a defensive stock because of its low-cost goods that are essential for daily necessities. When the markets enter a recession, people’s spending habits change leading them to depend on affordable retailers.
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Consumers spend more on budget-friendly items and hoard them at home for daily usage. This has helped Walmart increase its earnings during a downturn making it a recession-proof US stock to depend on. The company maintains a steady revenue helping its stock price defy the odds and soar in value. For the uninitiated, WMT stock was trading at $15.84 at the start of the recession but reached $19.96 at the peak of the downturn. When the recession ended, its price was at the $16.15 mark, which is not a major downward trend.