Wednesday, July 2, 2008

5 Recession Proof Stocks

The market is officially in the dumps. If you are still long the market here are 5 of my top picks to ride through this slow economy.

1. Coach (COH) - High-end retailers historically do not follow the market into recessionary times. With a P/E under 15 COH looks like a buy at this price. Coach is a staple of high end fashion and should fare well through the next few months.

2. Chesapeake Energy Corp (CHK) - Producer of natural gas in the US, CHK owns approximately 38,500 producing oil and natural gas wells. High oil prices are driving CHK high and should continue throughout the summer.

3. Nike (NKE) - Nike is a steal at the current price after taking a tumble. Less then impressive growth has put NKE on the hot seat with investors, but aggressive international growth and Olympic exposure should help this staple continue to grow.

4. PepsiCo, Inc. (PEP) - PepsiCo has continued to impress investors with outstanding growth and increasing market share. International growth along with domestic synergy will allow PEP to continue the impressive growth during a slowing economy.

5. Toyota Motor Co. (TM) - Toyota has continued to take advantage of the green movement. Green companies will prosper this summer as fuel prices continue to rise. I have been following TM for a few months and may pick up a few shares this week.