When the dust settled at market close, the torrent of crimson ink revealed that the equities sector has a long way to go, thus bolstering the idea of unstoppable stocks to own. No, these are not companies that are poised to make you rich. Instead, the concept here revolves around levering your funds to businesses and industries that can hold up well in an economic storm.
While it’s not yet to the point where you should give up entirely on high-growth potential stocks to own, it’s becoming more evident that the incredible rally we’ve seen since the coronavirus pandemic needs a corrective cycle. In my opinion, it comes down to the rapid and unprecedented expansion of the real M2 money stock. Essentially, it’s time to pay the monetary piper.
Even more ominous, it’s not just my opinion. From visionary entrepreneurs like Elon Musk to just recently the World Bank, experts are sounding the alarm on a possible global recession. Indeed, the World Bank fears stagflation, which combines high inflation and low growth.
There may be no better time than now to consider the below unstoppable stocks to own in 2022.
|ORLY||O’Reilly Automotive, Inc.||$594.27|
|CHD||Church & Dwight Co., Inc.||$84.85|
|TSN||Tyson Foods, Inc.||$83.31|
Stocks to Own: Kellogg (K)
A household favorite, Kellogg (NYSE:K) is fully integrated with the American experience, manufacturing some of the most popular breakfast and convenience foods. Should we get closer to a recessionary cycle, what should help Kellogg become one of the unstoppable stocks to own in 2022 is the long shelf life of many of its products.
After all, arguably the easiest way to fight inflation is to buy products you use frequently in bulk. That way, should prices rise, you’re better insulated from the pain.
But another factor helps lift Kellogg from other food manufacturers and that comes down to its pivot to plant-based meats. Increasingly, consumers are becoming more conscientious about what they consume, economically and literally.
As well, with people eating poorly during the Covid-19 lockdowns, many have reported unwanted weight gain. Such a backdrop essentially benefits Kellogg’s plant-based products, as well as its Special K brand of cereals, bars and shakes.
Before putting Intuit (NASDAQ:INTU) on this list of unstoppable stocks to own, I originally wanted to put down tax-preparation firm H&R Block (NYSE:HRB). However, considering that I was earlier talking extensively about HRB – and with it finally making good with a very strong 46% year-to-date performance – I wanted to give a shot to Intuit.
As a tax-prep software developer, Intuit isn’t exactly a direct competitor to H&R Block. However, in my view, they both share the same fundamental catalysts: the rapidly changing work environment in America and abroad. During the analog era, it wasn’t that unusual for talented workers to stay with a single company for most of or even the entirety of their career.
Of course, times change. In this case, people are finding the joys of working for themselves. But such scenarios require a different tax consideration. Because of the complexity difference between employees and independent contractors, INTU could be an intriguing idea among unstoppable stocks to own.
O’Reilly Automotive (ORLY)
It doesn’t take a genius to understand that when a recession hits, households tighten their budget. And this tightening impacts myriad industries, including the automotive sector. According to an article from the Wall Street Journal in May of this year, the average age of vehicles on U.S. roadways hit a record 12.2 years. This shocking statistic is music to the ears of O’Reilly Automotive (NASDAQ:ORLY).
As an auto parts retailer and repair advice resource, O’Reilly is one of the most popular places for folks who like to tinker with their cars. The thing is, should a recession hit, this community could see an expansion.
You might say that many if not most millennials are not resourceful. Certainly, evidence leans in that direction. However, we all know somebody that knows something; thus, it’s possible that ad-hoc repairs could rise in frequency, boosting revenue for O’Reilly.
It’s a tricky idea among unstoppable stocks to own since it might be better simply to replace a rusted car. Still, with inflation these days, auto repairs might see a renaissance.
Stocks to Own: Church & Dwight (CHD)
Let’s not waste any time with the fundamental narrative for Church & Dwight (NYSE:CHD). As one of the most popular manufacturers of household goods and essentials, Church & Dwight enjoys basically permanent relevance. Recession or not, you’re going to take care of your home, your stuff and yourself.
And if I’m really thinking cynically, one brand in particular that could help lift CHD as one of the unstoppable stocks to own is Trojan – and no, I’m not referring to ancient mythology. Contrary to some forecasts, Covid-19 produced a baby bust. I think you can understand why. It’s not exactly a great time to rear children when you’re faced with the possibility of going over an economic cliff.
Well, the same concept applies if we’re headed toward a recession, let alone stagflation. Besides this, CHD has proven to be a recession-resistant firm. Frankly, it’s too boring not to be.
Tyson Foods (TSN)
Undoubtedly, some of the best stocks to own when faced with the prospects of troubling times is to focus on indispensable companies. As a food-processing and manufacturing specialist, Tyson Foods (NYSE:TSN) is one of the names to keep close to your chest. No matter what happens in the economy, we all got to eat.
To drive the cynical argument even more, households usually don’t just cut all items out of their budget. Instead, they start cutting the discretionary fat like TV subscriptions and Pilates classes before they start making the sacrifices that hurt. In this regard, Tyson is relatively safe. If households start compromising their calorie intake at scale, perhaps no stocks to own are worthwhile.
Finally, analysts have identified TSN stock as a strong value play based on a combination of fundamental metrics like price-earnings ratios. Should the smelly stuff hit the fan, you know where to look for possible protection.
Anytime you’re faced with a possible economic downturn, one of your go-to sectors should be utilities. Admittedly, Sempra (NYSE:SRE) isn’t natively special in that regard. Perhaps most other utility plays could be unstoppable stocks to own. After all, in a highly digitalized society, bad things happen when people go to turn on the lights, only to be met with darkness.
But why Sempra specifically? It has to do with its core southern California market. As you know, the Golden State is the biggest economic engine in the U.S., levering enough might to be a Top 10 global power. And that means Sempra can fleece the flock and it can get away with it because the people will pay.
Of course, it shouldn’t be this way but that’s the hegemonic reality of the utilities industry. Still, this cynicism can cut both ways, making SRE an ideal stock should problems hit.
Stocks to Own: Nordstrom (JWN)
You may be confused as to why Nordstrom (NYSE:JWN) is on this list of unstoppable stocks to own in 2022. Honestly, you would be justified in your confusion. Yes, Nordstrom features a dividend yield of 2.8% but that’s not the reason why I’m interested in JWN. While incredibly risky, the department store giant could be a surprising beneficiary of changing workforce dynamics.
Many people assume that the grand work-from-home experiment will become a permanent fixture in corporate America. I don’t see it that way. Ultimately, it doesn’t matter what the heck you want or even what the employer will allow. Instead, the health of the economy will determine payroll and how it is constituted. With layoffs worryingly increasing, worker bees need to stop being so entitled.
Well, if the pink slips start flying, people will need to look presentable for their next job interview. That’s why I chose Nordstrom over say Ross Stores (NASDAQ:ROST). No offense whatsoever to Ross but I think you know what I’m trying to say.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.