The Best Recession Stocks of January 2025
Stock (ticker) | 5-Year Average Yearly EPS Growth Estimate |
---|---|
14.1% | |
8.9% | |
8.8% | |
8.7% | |
7.6% | |
7.4% | |
7.2% | |
6.9% | |
6.6% | |
6.2% |
Methodology
Our list of the best recession stocks is built using strict criteria. Each of the stocks outlined above is traded on major U.S. exchanges, has a per-share price of at least $5 and sees daily average trading volume of over 150,000 shares per day. In addition, each meets the following requirements:
- Low volatility. The stocks have not seen a sustained decline of more than 35% in the past 10 years, based on daily closing prices and adjusted for dividends. Only 69 stocks that traded on major U.S. exchanges met this volatility criteria—most U.S. stocks have seen much bigger declines.
- Steady profits. Positive earnings for at least six years.
- Earnings growth. At least 5% annual average EPS growth over the past five years.
- Expected future growth. At least 6% annual EPS growth expectations over the next five years.
While not a requirement in the selection of the best recession stocks, dividend yield and dividend growth were also considered. Dividends provide cash flow even when a stock is declining and also offer a hedge against inflation.
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products.
Note: An experienced financial analyst selected the stocks above, but they may not be right for your portfolio. Before you purchase any of these stocks, do plenty of research to ensure they align with your financial goals and risk tolerance.
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