An (NASDAQ: ROKU), O’Reilly Automobile (NASDAQ: ORLY), and Costco (NASDAQ : COT) are some of the best recession-proof stocks to buy now. Let’s see why I think they’ll weather the storm when the economy starts looking stormy.
Streaming TV at home has become a comfort food and it’s a great way to entertain yourself on a budget. There is a plethora of free to nearly free services out there, and Roku is the hub of choice for 53.9 million+ households. Roku has thousands of streaming apps available, and it has never been easier to access the free platform.
Roku dongles cost as little as $ 20 to $ 30, and if you’re lucky, the smart TV you own may already come with Roku’s operating system installed. Roku delivers 38% of smart TVs sold in this country.
It’s not just about accessing all the popular streaming apps from one remote. Roku has stepped up its offerings of free ad-supported content, an initiative that is expected to increase user engagement and loyalty. As advertisers turn to smart TV marketing to reach the growing audience for streaming videos, Roku can continue to grow without costing you a dime out of pocket.
If shiny new cars are a by-product of a booming economy, what happens when our financial well-being goes the other way? We tend to hold onto our cars more when money is tight, and that’s when O’Reilly Automotive starts to shine. The chain of 5,660 stores sell auto parts, and it’s historically a good place to be when we need to maintain our aging cars.
O’Reilly is a beast of consistency. This has resulted in 28 consecutive years of positive competition, and it will be easy to extend that period to 29 years. Sales rose 25% in the first quarter, almost entirely fueling a 24.8% year-over-year increase in comps. The bottom line is growing even faster.
O’Reilly Automotive has proven to be a worthy winner of all time. Even in a pandemic where we didn’t spend a lot of time in our cars, the company has still managed to keep its performance positive and exceed Wall Street profit targets with ease over the past four quarters.
Roku and O’Reilly Automotive don’t pay quarterly dividends, which investors typically expect from recession-resilient investments. Let me try to correct this list by closing things with Costco. The leading warehouse club operator – and the world’s third-largest retailer – isn’t going to thrill investors with its modest 0.8% return, but it does know how to keep payments coming. It has increased its distributions every year since 2004, including a 13% increase last month. Costco also declares large one-time dividends, including a special payment of $ 10 per share that it paid to its shareholders last month.
There are over 105 million Costco members, and they’re fanatical about the bargains they can find. Costco is a well-oiled machine with such meager margins on their products that the membership fees almost rival the results of the 809-unit chain.
Costco didn’t flinch at the start of the pandemic as a core business, and that’s not slowing down now that year-over-year comparisons are starting to kick in. Costco’s net sales climbed 21.57% to $ 44.38 billion in the third fiscal year. quarter he released on Thursday. Net income is growing even faster.
It is not easy to invest during a recession. Roku, O’Reilly Automotive, and Costco should help all-weather businesses that should thrive in good times and bad.