7 Stocks You Need to Buy Before the 2025 Recession Starts

Economic Indicators - Several key indicators suggest a potential recession for the U.S. economy in 2025, including the inverted yield curve and the Sahm Rule recession indicator [1][2] - The Sahm Rule indicates a recession when the 3-month moving average of the unemployment rate rises 0.5 percentage points or more from its low in the previous 12 months, which has never triggered a false alarm since the 1970s [1] Company Analysis - McDonald's (MCD): Historically resilient during downturns, McDonald's stock rose during the 2008 recession and the 2020 COVID shock. The company has launched a $5 value meal to attract cost-conscious customers, with a consensus rating of "Moderate Buy" and a price target of $302 [3][4] - Church & Dwight (CHD): Reported strong Q2 2024 results with 4.7% organic sales growth. The company is considered stable and consistent, with a reasonable valuation around $100 per share and a 1.1% dividend yield [5][6] - AutoZone (AZO): Positioned to benefit from the aging U.S. vehicle fleet, AutoZone reported earnings per share of $36.69, beating estimates. The stock has outperformed the retail sector, rising nearly 10% over the past month [7][8] - Berkshire Hathaway (BRK-A, BRK-B): Warren Buffett has sold over $75 billion in equities in Q2 2024, increasing Berkshire's cash pile to $276.9 billion. The company’s operating earnings rose 15% in Q2, indicating robust performance despite market downturns [9] - Flowers Foods (FLO): Despite a recent stock decline of 8.4%, Flowers Foods reported a 2.8% year-over-year sales growth to $1.58 billion. The company is expected to earn $1.25 per share in fiscal 2024, with a 4.2% dividend yield [10][11][12] - Coca-Cola (KO): Reported 15% organic revenue growth and 7% comparable EPS growth in Q2 2024, raising its full-year guidance. The stock has a 2.8% dividend yield and remains a resilient choice for a defensive portfolio [13][14] - Procter & Gamble (PG): Achieved 4% organic sales growth and 12% core EPS growth in Q4 2024. The company’s products are considered essential, making it a reliable investment during economic downturns, with a 2.36% dividend yield [15][16]