These 2 Stocks May Be Recession-Proof
A growing chorus of economists has been predicting a recession in the U.S. this year or next. In such an environment, finding companies with economically resilient revenue and earnings streams may be hard to do -- but not impossible. In fact, contract research organization (CRO) stocks Charles River Laboratories International (NYSE: CRL) and Thermo Fisher Scientific (NYSE: TMO) may be just what you're looking for. Here's why.
CROs conduct the research and development process for companies trying to get new medications FDA-approved and to the market. Pharma start-ups rely on CROs to complete the highly regulated research process because doing it themselves is cost prohibitive, especially if they're only developing a single drug. And big pharma companies don't want to spend money on an internal research staff due to the cyclical nature of each company's drug pipeline.
The CROs are happy to help. With diversified stables of pharma clients, CROs are resistant to any economic environment. In addition, the research process that CROs are paid for can take more than 10 years until final FDA approval.
Source Fool.com
