Forget Target: Costco Is the Better Recession-Resistant Stock

While the market has impressively bounced back from the COVID-19 outbreak back in March, things are still highly uncertain. We are in a recession right now, and the timing and trajectory of a recovery are still open questions. Research group The Conference Board projects U.S. GDP will fall 7% in 2020, with just a 1% increase in a "recovery" year of 2021. For consumer spending, The Conference Board believes things will be better, but only slightly, with a 6.7% decline in 2020 and a 1.9% recovery in 2021.

If you're a defensive investor afraid of a lingering recession, two strong choices to park your investment dollars may be the consumer staples sector, or better yet, the big, financially strong retailers that offer a wide variety of staples that consumers need in good times and bad. Two such dividend-paying retailers are Target (NYSE: TGT) and Costco (NASDAQ: COST). Of the two, here's why Costco is the more recession-resistant stock.

Costco vs. Target: Which is the better recession stock? Image source: Getty Images.

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Source Fool.com