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Recession-Proof Riches: 3 Stocks That Thrive in Any Economy

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Finding reliable assets is crucial in the current unstable environment. Even amid economic uncertainty, certain equities hold their value and offer steady returns. Three such luminaries are well-known in their fields. These three firms stand out as beacons of stability in the face of market turbulence: the first one with its strong loyalty program and worldwide development initiatives; the second with its consistent growth in wealth management; and the third with its inventive competence in medicines.

Their most recent results reveal that these companies survive and prosper throughout economic downturns, providing investors with a safe harbor for consistent growth. These companies are not just stable; they are also innovative. Their durability and flexibility make them appealing investments even in difficult times.

Whether it’s the first company’s strong loyalty program and worldwide development initiatives, the second company’s fee-based revenue growth, or the third company’s groundbreaking cancer advances, their strategies are worth exploring. Discover the tactics and achievements that underpin these three stability pillars against market downturns.

Starbucks (SBUX)

the Starbucks (SBUX) logo on a sign outside of a coffee shop

Source: Grand Warszawski / Shutterstock.com

In Q1 2024, Starbucks (NASDAQ:SBUX) had 34.3 million active US Rewards members, a 13% growth from Q1 2023. The increase in membership shows how well Starbucks’ loyalty program encourages consumer interaction and return business. Moreover, the $3.6 billion placed into Starbucks cards in the US highlights the high level of consumer loyalty even further. This significant prepaid sum shows a high degree of client loyalty and gives Starbucks a reliable source of income.

Additionally, at the end of the first quarter, Starbucks had 38,587 locations worldwide, adding 549 net new locations. This rapid expansion shows the company’s capacity to break into new areas and satisfy unmet customer demand. Starbucks intentionally concentrates on two important countries to spur expansion, with 61% of its outlets in China and the United States combined. 

Furthermore, Starbucks’ international sector had a 10% growth in net revenues in Q1, despite obstacles including currency headwinds. This expansion demonstrates the company’s robust worldwide reach and capacity to seize various market possibilities. In short, Starbucks is still optimistic about its expansion in China, concentrating on gaining market share in the premium sector. 

Goldman Sachs (GS)

In this photo illustration the Goldman Sachs Group (GS) logo displayed on a smartphone screen and a stock market graph in the background

Source: rafapress / Shutterstock.com

Goldman Sachs (NYSE:GS) recorded a double-digit percentage boost in asset and wealth management revenues. The expanded management, other fees, and solid private banking and lending performance fueled the growth, indicative of Goldman Sachs’ consistent expansion in the segment.

The Asset & Wealth Management division delivered an 18% uplift in net sales from Q1 2023 to $3.79 billion in Q1 2024. Indeed, this expansion derived from the company’s capacity to draw in and hold onto customer assets. This boosts the fee-based top and bottom lines.

Furthermore, the 32% increase in investment banking fees from 2022 emphasizes Goldman Sachs’ capacity to hike fee revenue from advisory services and debt and equity underwriting. This expansion shows how well the company executes high-value deals even under the adverse business environment.

Lastly, the Global Banking & Markets business recorded net sales of $9.73 billion for Q1 2024, up 15% from Q1 2023 and a solid 53% from the previous quarter. To sum up, the Global Banking & Markets division is seeing strong business activity. Hence, this reflects the double-digit percentage rise in net revenues compared to the same quarter last year and the previous year.  

Johnson & Johnson (JNJ)

A red Johnson & Johnson (JNJ) sign hangs inside in Moscow, Russia.

Source: Alexander Tolstykh / Shutterstock.com

The Innovative Medicine sector of Johnson & Johnson’s (NYSE:JNJ) sales hit $13.6 billion, up 2.5% worldwide. Interestingly, US sales grew by a robust 8.4%. Johnson & Johnson’s pharmaceutical division’s robust performance reflects this trend, especially in its largest US market. The company’s unique pharmaceutical products are in consistent demand, as seen by the moderate rise in global sales.

Furthermore, the company’s excellent expansion in oncology was fueled by the adoption of new products and major brands. For example, DARZALEX had a 21% rise, primarily due to improvements in share across all therapeutic lines. Additionally, vital clinical and regulatory milestones were reached, particularly in the field of cancer, whereby several medicines received positive Committee for Medicinal Products for Human Use (CHMP) views and US Food and Drug Administration authorization.

These pipeline benchmarks demonstrate how Johnson & Johnson’s pipeline progresses. The company is focused on creating novel solutions for unmet medical needs. Therefore, the purchase of Ambrx (NASDAQ:AMAM) highlights the company’s strategic commitment to growing in this therapeutic area and expanding its offering in cancer.

As of this writing, Yiannis Zourmpanos held a long position in JNJ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

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The post Recession-Proof Riches: 3 Stocks That Thrive in Any Economy appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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