The US nonfarm payrolls increased sharply month-over-month in August, but came in below Friday’s consensus forecast.
The US economy added 142,000 new jobs last month, compared to 89,000 in July. This is a far cry from the 161,000 predicted by Dow Jones.
The monthly employment data is weaker than expected, suggesting that businesses are still hesitant to hire. This could be due to concerns about future economic conditions.
If you are worried about a possible economic slowdown in the United States, here are three stocks that you should own to protect your portfolio against the effects.
PepsiCo Inc (NASDAQ: PEP)
PepsiCo is known for its long history of reporting relatively steady sales during economic slowdowns.
PEP is a safe investment that offers a certain level of certainty in unsure times.
PepsiCo’s stock also offers a dividend yield of 3.05%, which is a good return in total terms ahead of any potential US recession.
The multinational food giant predicts a 4.0% growth in organic revenue on an annualised basis and at least a 8.0% increase in earnings based on core constant currency.
PepsiCo shares are down about 10% from their all-time peak. You’re not paying a premium for this consumer staple.
Source: TradingView
Johnson & Johnson (NYSE JNJ)
Johnson & Johnson, a recession-proof healthcare titan, is pulling out of the long-standing talc-baby powder fiasco. This could give its share price a new lease of life over the next year.
The pharma giant has a pipeline of products that is robust and offers sales that are industry-leading. This will help it to remain resilient during a US recession.
Johnson & Johnson’s stock is currently trading for a significant discount compared to Eli Lilly & Co., which is selling at over 41 times its forward earnings.
JNJ shares, like PepsiCo’s, offer a healthy dividend yield of 3,01%. This helps investors lock in lucrative returns during economic downturns.
Source: TradingView
Walmart Inc (NYSE: WMT)
Walmart Inc. has a good investment thesis. Economic slowdowns make consumers more cautious about spending.
The big box retailer is committed to providing more convenience to its customers with its eCommerce offerings, which have helped it steal consumers of middle- and upper-income from dollar store chains.
WMT recently increased its full-year sales and adjusted earnings guidance to up to 4.75%, and between $2.35 to $2.43 respectively. This confirms the management’s confidence about what Walmart has in store for the future.
Wall Street has also given Walmart stock a consensus rating of “buy”, which pays a current dividend yield of 1.08 percent.
Analysts expect WMT’s share price to rise to an average of $82, which is equivalent to a potential gain of 8%.
Source: TradingView
This post Top 3 recession proof stocks to buy as US Monthly jobs data disappoints once again may be updated as new developments unfold.
This site is for entertainment only. Click here to read more
