(uplifting music)
- Hello, everyone.
Welcome to the Financial
Information Channel.
In this video, I am going to mention
some of the top ten stocks
during our recession.
The following ten stocks have proven
to do well during a stock market crash.
I will mention some of the fundamentals,
but keep in mind, doning best in during
a stock market recession
can become challenging,
because you cannot rely just on the
fundamentals such as the price of earning.
You also have to look at trends
that have work in the past.
And one thing for sure, I am actually
going to show you actual numbers
of so many companies,
and how the companies
have perform during a
stock market recession.
But really quick, before
we start the video,
my name is Marvin, I do videos
about the stock market, personal finance,
and how to make money,
so if you're interested,
you can click on the subscribe
and the notification bell.
And also, you can leave
in the comment sections,
which company did you like
the best from this video?
But now, let's start with the video
about the ten recession-proof stocks.
And the number one stock that has
done really well during
a stock market recession
is going to be Ross Stores,
and the stock symbol is ROST.
And Ross Store is an apparel and
a domestic play in the stock market.
And Ross Stores have done an amazing job
during stock market recession,
and one of the main reasons,
their apparel sell at a reduced price.
And you will see, during the screen,
during the recession, from 2000 to 2002,
Ross went up over 79% percent.
And during the bear market that we had
from 2007 to 2009, the company returned
to investors around ten percent.
And during the correction
that we had in 2011,
the Ross Store went up over four percent.
And just to give an idea how Ross Stores
have done during a stock market recession,
in the main year, which was in 2008,
Ross Store went up over 17% percent.
It out-performed the S&P
500 by around 56% percent.
It is a good stock since a lot of people
will want to cut cost for apparel
during a stock market recession.
But really quick, let's take a
look at the price of earning.
And at this moment, the price
of earning is around 22.
And it has a forward price
of earning around 17.
And in the balance sheet, it has
around 1.29 billions in cash,
and around 396 millions in debt.
And I'm surprised by the balance sheet
since this company's a retail,
and it has a clean balance sheet.
And now, let's take a look
at the number two company
during a stock market recession.
And that is going to be Southern Company.
And Southern Company is a utility company
that provides power to more
than 4.4 million customers.
And the company operates mostly US,
south part of the United States.
And Southern Company has
done a really good job
during a stock market recession.
During the recession from 200 to 2002,
the company went up over 127%
percent during those years.
However, during the recession in 2011,
the company went up over eight percent.
Now, keep in mind, the Southern Company
pays a really good dividend, and that
dividend is actually nice to have
during a stock market recession.
Now, in terms of Valuation, the company
has a price of earning at this moment
around 54 and the forward
price of earning is around 15.
Now, in terms of the balance sheet,
It has a bad balance sheet.
It has around two billions in cash,
and he has around 50 billions in debt.
Even during a stock market recession,
people will need power services.
And now for the number three stock.
It's a company that makes sense
during a stock market recession.
And that company is gonna be Dollar Tree.
And Dollar Tree makes a lot of sense
during a stock market recession.
A lot of people will want to
buy items at a dollar price.
Now, Dollar Tree went up
over 60% percent in 2008.
It outperformed the S&B
500 by over 99% percent.
And the forward price of
earning is around 15 dollars.
In terms of its balance sheet,
it has around 1.1 billions in cash,
and it has around 5.6 billions in debt.
So the balance sheet may look bad,
but I think during a
stock market recession,
there business will do great, since
it sells a lot of their
items at a discounted price.
And now, for the number four company.
It's a company that I
wasn't very familiar.
However, it did really well during
the stock market crash
from 2007 through 2009.
And that company is Anheuser-Busch.
And that company produces
a lot of the cheap beer
that is sold in the United States.
And one of their products,
is for example, Budweiser.
The company return in 2008
went over 39% percent.
But now, let's take a look really quick
at some other fundamentals
for this company.
And now you see in the screen the
price of earning at this
moment is around 25.
And the forward price
of earning is around 17.
Now, in terms of this balance sheet,
it has around 11 billions in cash.
But it has 117 billions in debt.
And it has a ton of debt, however
it sells a lot of the cheapest
beers in the United States.
So, some of those margins
should be really good.
But now, let's take a look
at the number five stock
during a stock market recession.
And that company is gonna be Walmart.
And Walmart is a very known
retail in the United States.
And one of the main reasons
is that it sells a lot
of the items at a really low price.
Walmart performance during the bear market
from 2000 to 2002, the share price
moved down around four percent.
However, during the
most recent bear market,
from 2007 to 2009, Walmart
went up over seven percent.
And, during the latest correction
in 2011, Walmart moved
down over four percent.
Now, one key number that
you have to pay attention,
in 2008, when the stock market was tough,
Walmart went over 20% percent.
It outperformed the
S&B 500 by 58% percent.
In terms of the valuation at this moment,
it has a price of earning around 26,
and the forward price
of earning around 16.
And it has a balance sheet
around six billions in cash,
and around 46 billions in debt.
And most likely, Walmart will do fine
during a stock market recession.
But now, let's go to number six stock.
And that is Consolidated Edison.
And that is another utility company
that has done really
well during tough times.
Consolidated Edison provides a lot
of the electric and gas
services around New York.
And one important fact in this
company is regulated along
with Southern Company
that I mentioned earlier.
Now, the company did really well
during the bear market from 2000 to 2002.
The company share price
went over 61% percent.
However, in the most recent bear market,
from 2007 to 2009, the company
moved down over 25% percent.
But, in the latest correction
that we had in 2011,
the company moved up over ten percent.
And this is another utility company
that has a really good dividend.
But now, let's take a
look at the valuation.
And now you can see it
has a price of earning
at this moment around 50, and a
forward price of earning around 17.
Now, in the balance sheet, it has
around 797 millions in cash,
and around 16 billions in debt.
So it has a lot of debt,
but I wouldn't worry
since a utility company is always needed
during a stock market recession.
And now for the number seven
stock is gonna be Amgen.
Amgen is a biotech giant company
that produces a lot of drugs
that are related to cancer.
And even if money is
tight, during a recession,
you will still need medicine.
And the company did really well
during the latest stock market crash
in 2008, the return
was around 24% percent.
It outperformed the
S&P 500 by 62% percent.
Now, in terms of the
valuation at this moment,
it has a price of earing
at this moment around 64.
And the forward price
of earning around 12.
So it is nice to see a biotech company
with a positive balance sheet.
So this company should do fine
during a stock market recession.
But now let's go to number eight stock,
and that is gonna be Abbot Laboratories.
Now, this is another company
that is in the healthcare space.
It does a lot of medical devices
and nutritional formulas for patients.
In the latest bear
market, from 2007 to 2009,
the company moved down around 11% percent.
And in the 2011 correction, the
company moved down over two percent.
Even if it didn't do really well
during the latest bear market,
it has a good dividend,
so keep that in mind.
In terms of valuation, the company
has a price of earning
at this moment around 218
and the forward price
of earning is around 18.
And in the balance sheet, it
has around 9 billions in cash,
and around 27 billions in debt.
But now, let's go to number nine stock,
and this company wasn't around
during the latest stock market crash.
And that company's
gonna be Dollar General.
The company went IPO
on November 13 of 2009.
The company share price when it
went IPO was around 21 dollars.
Now, for Dollar General, don't have
any returns during a bear market.
However, the business should
do just as fine as Dollar Tree.
Dollar General is another retailer
that sells a lot of their
items at a dollar price.
Now, in terms of the
valuation at this moment,
it has a price of earning around 17,
and a forward price of earning around 14.
And in the balance sheet, it
has around 267 million in cash
and around 3 billions in debt.
And these retailers should
do fine during a recession.
But now, let's go to number ten stock.
And that is stock that
I actually own shares.
And that company is going
to be Constellation Brands.
And Constellation Brands
actually had a negative return
during the latest bear
market from 2008 to 2009,
the company moved down over 17% percent.
However now, the company should do better.
It has more products under its portfolio.
In addition, the management team is way
better from what it was in 2008.
And Constellation Brand main business
is to sell beer, wines, and liquor.
But now, let's take a
look at the valuation.
And now you can see at this moment,
it has a price of earning around 19,
and a forward price of earning around 20.
And, in terms of its balance sheet,
it has around 90 millions in cash,
and around 10 billions in debt.
However, it has a really good cash flow,
and the margins in
alcohol are really good.
I see these stocks as some of the top ten
best stocks during a stock market crash.
Now, one important question that I'm going
to answer is how these stocks
would compare to a commodity.
And I'm talking about a commodity such as
gold during a stock market crash.
Now, I'm going to show you the performance
for gold during our bear market.
And as you see on the screen, during
the latest recession from 2007 to 2009,
the gold price went up over 24% percent,
and the S&P 500 moved
down over 27% percent.
So that is just one
example, but let me show you
the recession that happened in 2001.
And during the 2001 recession,
gold went up over four percent.
And the S&P 500 moved down
over 15% percent in 2001.
So, to answer the question, gold has shown
in the past that it had done really well
during a stock market recession.
And these are going to be the
top ten recession-proof stocks.
And that is gonna be
everything for this video.
Please leave in the comment sections
which company did you like the most?
And for me, the most surprising
company was Ross Stores.
It has done really well during recessions.
And remember you can share this video,
and give it a like if you
find the video helpful.
And I'm going to leave this video
if you want to prepare
for a stock market crash.
And you can see another
video here from this channel.
And remember, you can subscribe
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And I'm going to thank you once again
for watching the video,
have an excellent day,
and take care, my friends.
