US stocks have been in decline in recent sessions amid fears that the economy will enter a recession by the second half of 2025.
Investors are worried that Trump tariffs, and the pressure they put on spending, could trigger a recession in the coming months.
There are still a few names that have shown resilience in the past during recessionary times and are expected to do well this year, too.
Here are the two best stocks to buy in 2025.
Waste Management Inc (NYSE: WM)
Waste Management has been able to hold its own in the face of the recent sell-offs in US stocks due to tariffs.
At the time this article was written, shares of the trash-and-recycling giant were up more than 10% in the past year. They are expected to continue their gains going forward.
WM stock is a good investment despite fears about a recession. It has a beta value of only 0.5, meaning investors can rely on its stability even if benchmark volatility continues.
Houston-based company Waste Management tends to be resilient in recessionary times, as waste management is a service that’s essential, no matter what the economy does.
Analysts at Deutsche Bank say that the industry has defensive qualities, with predictable and recurring revenue streams.
In a recent note the firm’s analysts also reminded investors that during the Great Recession, waste stocks performed significantly better than S&P 500.
Waste Management is a dividend paying stock with a current yield 1.47%. This adds to its appeal as an investment for the long term.
Netflix Inc (NASDAQ: NFLX)
Netflix has also done well in economic downturns. In 2008, it outperformed the market. Then again in 2020.
The streaming giant is a great way to keep entertained when consumers are cutting back on more expensive alternatives during recessionary times.
NFLX offers a subscription model that is affordable, making it less likely that users will cancel their plans even in difficult times.
Netflix shares have also fallen sharply in the last few weeks, and now trade at a 15% discount to their peak of mid-February. The mass media giant’s valuation has also been lowered, which makes it a good time to invest.
Investors should note that Netflix’s diverse content library, as well as its global reach, may help to maintain its subscriber base in the event of a possible US recession by 2025.
Wall Street continues to rate NFLX stock as “overweight”, with a potential upside of $1,081 in the average over the next twelve months. Netflix does not pay a dividend at the moment, unlike Waste Management.
This post Quality stocks to recession-proof your portfolio by 2025 may be updated as new information becomes available
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