US stocks have fallen out of favour in recent sessions amidst fears the economy is headed for a recession in the back half of 2025.
Investors are concerned that Trump tariffs and the consequent pressure on spending could trigger an economic downturn in the coming months.
Still, there are a bunch of names that have historically shown resilience during recessionary periods and are, therefore, expected to do fairly well amidst a potential recession this year as well.
Here are the top two of these recession-proof stocks that you should consider buying in 2025.
Waste Management Inc (NYSE: WM)
Waste Management has held its own amidst the tariffs-driven sell-off in US stocks in recent weeks.
At the time of writing, shares of the trash and recycling giant are up more than 10% for the year and are broadly seen extending their gains moving forward.
WM stock is attractive to own despite fears of a recession ahead as it has a beta of 0.5 only, which means investors can count on it for stability even if the benchmark continues to grapple with volatility.
The company based out of Houston, Texas, tends to be resilient during recessionary periods as waste management is an essential service that’s needed irrespective of what happens to the economy at large.
“The industry has defensive qualities with recurring and predictable revenue streams,” according to analysts at Deutsche Bank.
In a recent note, the firm’s experts also reminded investors that waste stocks did significantly better than the S&P 500 during the Great Recession.
Waste Management is a dividend-paying stock with a current yield of 1.47%, adding to its appeal as a long-term investment.
Netflix Inc (NASDAQ: NFLX)
Netflix also has a history of doing fairly well during economic downturns, having outperformed the broader market in 2008 and then again in 2020.
The streaming giant offers a budget-friendly means for entertainment as consumers cut back on pricier alternatives during recessionary periods.
NFLX has an affordable subscription model that makes it less likely for users to cancel their plans, even in tough times.
Plus, Netflix shares have pulled back sharply in recent weeks and are now trading some 15% below their peak in mid-February. The toned-down valuation warrants an investment in the mass media giant as well.
Investors should also note that Netflix has a diverse content library and global reach that may help maintain its subscriber base amidst a potential US recession in 2025.
That’s part of the reason why Wall Street continues to rate NFLX shares at “overweight” with upside to $1,081 on average over the next 12 months. Unlike Waste Management, however, Netflix stock does not currently pay a dividend.
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