Fear a recession? Here are the stocks I think might thrive

first_imgFear a recession? Here are the stocks I think might thrive Enter Your Email Address Paul Summers | Saturday, 28th March, 2020 See all posts by Paul Summers Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images Simply click below to discover how you can take advantage of this. I don’t know about you but I’m struggling to find a reason for thinking that the UK economy will simply snap back to life once the coronovirus threat subsides. Despite massive financial stimulus on the government’s part, the sheer speed at which recent events have changed our behaviour will surely leave a big mark. This episode has cut fast and deep with investors too, a whole generation of whom have never witnessed markets bleed to this extent before.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…That’s not to say that all stocks will perform poorly during the most difficult times. Here are some that might do better than most.Bargain hunters and sinnersOf all the sectors most impacted by the outbreak, retailers feature near the top. With all but essential shops shut and some online operations being stood down (e.g., Next), it’s going to be a hard few months for companies of all sizes. Even when the lockdown lifts, shoppers will surely be more careful with their cash than ever before. One group that tends to do well during recessionary times, however, are discount stores. FTSE 250 firm B&M European Value Retail would be a good example. I also suspect that Primark-owner and top-tier member Associated British Foods will remain popular.The outlook for other sectors is unclear. The postponement of huge sporting events such as Euro 2020 and the Olympics, for example, will have a huge impact on betting firms in the near term but it may also dissuade some who like the occasional flutter from doing so during the nailed-on recession. For this reason, I suspect gambling firms might still be a risky bet going forward.Other sin stocks, such as tobacco firm Imperial Brands, could fare better. Aside from their addictive nature, smokers may regard their products as affordable ‘treats’ during stressful times. Despite pubs and clubs being closed, firms such as Diageo may be another beneficiary as more of us drink at home.Steady stocksOf course, there are less controversial stocks that should offer stability regardless of what the economy is doing. Within this category, you might include phamaceuticals, waste management firms, and funeral services. As such, businesses like GlaxoSmithKline, Biffa, and Dignity should all prove resilient.Having already benefited from panic-buying as the coronavirus outbreak worsened, supermarkets should be something of a safe haven too. My preference in this space would be Tesco, for its dominant market share.Given the UK’s devotion to our furry friends, those in the pet space could also be worth a look. Earlier this week, FTSE 250 firm Pets at Home stated that it would keep its stores, website, and veterinary practices open for owners to pick up “essential“ products and obtain emergency health care, underlining how demand for these things won’t suddenly disappear. Veterinary services provider CVS Group is another option.A word of cautionWhile most or all of the above should do better than most in troubled times, it’s worth mentioning that this will not necessarily translate into big share price gains. In reality, it may simply be that their value falls less than others.For this reason, it’s worth remembering that all but the most cautious of us should still consider quality growth stocks if we plan on staying in the market for many years to come.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” Paul Summers has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK owns shares of B&M European Value. The Motley Fool UK has recommended Associated British Foods, Diageo, Imperial Brands, and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.last_img

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