The market has been uncertain and volatile, but luckily we’ve been here before and know what to look for in a company to help it maintain relevance in today’s markets. Companies that provide essential goods and services, maintain strong financial health, and demonstrate consistent performance are often better positioned to navigate economic downturns and international trade disputes.
Below are ten top recession- and tariff-resistant stocks, updated with their latest earnings and why they belong on your radar.
What Makes a Stock Tariff-Proof?
A tariff-proof stock is one that is largely insulated from the negative effects of tariffs, import duties, and global trade conflicts. Key traits include:
- Domestic Production & Supply Chains: These companies manufacture and source products within the U.S. or low-risk regions.
- Minimal Export Dependence: Firms generating most revenue domestically face less exposure to foreign tariffs.
- Essential Product Focus: Consumer staples and utilities remain in high demand even under restrictive trade policies.
- Pricing Power: Companies with strong brands can pass rising costs to customers, shielding profit margins.
What Makes a Stock Recession-Proof?
A recession-proof stock tends to remain stable or grow even during economic contractions. It often has:
- Essential Offerings: Think food, medicine, hygiene, and utilities—things people buy regardless of the economy.
- Strong Cash Flow & Dividends: Resilient companies can continue paying and growing dividends through downturns.
- Low Debt & Conservative Management: Financially healthy companies can weather reduced sales better.
- Non-Cyclical Demand: These businesses don’t depend on booming economies or luxury spending.
Top 10 Recession- and Tariff-Proof Stocks (2025 Edition)
1. Walmart (NYSE: WMT)
- Why It’s Resilient: A retail powerhouse offering low-cost, essential goods.
- Latest Earnings: $5.25B profit, +4.1% sales.
2. Procter & Gamble (NYSE: PG)
- Why It’s Resilient: Maker of staple brands like Tide, Gillette, and Pampers.
- Latest Earnings: $1.88 EPS (up 2%).
3. Coca-Cola (NYSE: KO)
- Why It’s Resilient: Beverages remain in demand globally, even in recessions.
- Latest Earnings: $0.55 EPS, $11.5B revenue.
4. Verizon Communications (NYSE: VZ)
- Why It’s Resilient: Wireless and internet services are indispensable.
- Latest Earnings: Q4 released January 24.
5. Johnson & Johnson (NYSE: JNJ)
- Why It’s Resilient: Healthcare giant with medical devices, pharma, and consumer products.
- Latest Earnings: Awaiting Q1 results.
6. NextEra Energy (NYSE: NEE)
- Why It’s Resilient: Essential utility services with a renewable focus.
- Latest Earnings: EPS guidance of $3.45–$3.70.
7. Dollar General (NYSE: DG)
- Why It’s Resilient: Discount chain thrives when consumers tighten belts.
- Latest Earnings: $1.68 EPS, +1.2% same-store sales.
8. Mondelez International (NASDAQ: MDLZ)
- Why It’s Resilient: Owns Oreo, Cadbury, and other snack staples.
- Latest Earnings: $0.65 EPS.
9. American Water Works (NYSE: AWK)
- Why It’s Resilient: Provides water—an essential utility that never goes out of demand.
- Latest Earnings: 2024 EPS: $5.39; 2025 guidance: $5.65–$5.75.
10. Costco Wholesale (NASDAQ: COST)
- Why It’s Resilient: Bulk discounter with a loyal membership base.
- Latest Earnings: EPS of $3.92, beating expectations.
Final Thoughts
Whether you’re trying to shield your portfolio from economic downturns or trade tensions, these stocks offer stability through turbulent times. Their essential products, domestic operations, and strong financials make them some of the best recession- and tariff-proof investments for 2025.
As always, do your own research before investing your money. This is not investment advice but just my opinion on what’s going on in the market today.
Bonus Pick:
Don’t sleep on cryptocurrencies. While they are naturally more volatile, their very nature is tariff and recession proof. They’re a store of value currency and something like Bitcoin was designed to be deflationary and a way to hedge against governments idiocracy.
