22 Recession Proof Stocks Says Major Bank [15% correct!]
Updated: Nov 15
Bank of America says to buy these 22 stocks that will outperform as people look for ways to save in a recession that will push even high-income Americans to spend less than what those stocks are. Let's have a look at the data and let's look at my analysis of these, so I'm going to go through every single one of these stocks and tell you what my view is on them individually. Let's go through each of these companies.
Planet Fitness is a 6.3 billion dollar company; what do they think? Well, it's been Biden off quite a bit, and they may be right. It may outperform the downside doesn't look too likely. Academy Sports and Outdoors has a good strong uptrend. It's a bit overbought, but I will go with the uptrend. I think I'm okay to say yes.
Bank of America is okay with that one-lifetime group, Holdings. It's come off a little bit recently, back down to 16 but given their push to their clients, can it go back to 20?
Yes, Top Golf Callaway Brands, whoops, an upward trend, no problems oversold, yes so and reverse head and shoulders for those who are into those things which could see this go; let's see 16 we project that to the upside where the neckline is 24 so that's another eight on top of that 24 which would bring it up to about 32 which guess what hey Presto is its highs so that's I guess the projection you'd be looking at for this one over maybe in the next 12 months to go from 21 to 32.
Solo Brands, a 622 million dollar company that is quite small by American Standards, overbought and fell off a bit, so I'm cautious. It's only six dollars, so high risk, very high-risk BJ's Wholesale Club Holdings 10.2 billion dollar company overbought but upward trend volatile if you want to go for it, go for it. Walmart has been treading water going sideways for about two years since 2020, leading to it forming that kind of a pattern. It's too messy to decide whether it will go from 140 dollars to 150; there is that upward trend; I'm neutral on it for now.
Costco, which I've liked in the past, that lovely little uptrend, and that's the direction of travel I would have suggested. But it will probably take time to do that, and risk-reward, it's a safe company whose risk is low. Still, the reward isn't phenomenal on that one Kroger again, it fell off a fair bit, and rather like Costco, it's forming a bit of a base, and you've probably seen the worst of it go by, and that would mean from 48 to about 60 yeah not too bad so yeah pretty good one.
Dr. Pepper, okay, whoops, over that, got a good base here. It's probably going to stay below that base over there and eventually rise up, so from 35; you'd be looking at it's not much to the upside. Is it really? That's my downside with that advanced order parts that are just absolutely falling off. Okay, it's got a sharp downside.
I won't suggest that we get into that one and stay in that one. We should not get into that one because it looks like too much of a downtrend. Okay, driven brands, what do you have on that one very volatile? It's going from 28 to 33. Is that really worth it on the upside for the volatility of consumer discretionary?
Home Depot's 292 billion dollar company it's at the base of the bottom of that channel. It looks like it'll hold on to that channel, so there is some good upside 289 to about what 400 it could go to, so I, yeah, like this one of the ones that they've picked to date, and what about Five Below 11 billion dollar company okay good and I've mentioned it before you can see the outward trend on that one. I will give it a yes for me and from Bank of America Leslie's.
No, it's just falling too sharply. It might have been based at 11. It's just too speculative for me. You'd be looking for 100 return to the upside, which is the argument for it. Still, you might want to keep an eye on it if nothing else, and that's a positive that it's making higher lows on the MACD. Still, I'll keep an eye see if it has based. Still, I suggest you keep an eye as well because you're really looking at 100 return on that if Bank of America has got its right lows; okay, what if we got that it's been going sideways since 2021? Yes, it's got that base on the momentum and should be starting to rise.
O'Reilly's it's one which I've earned in the past. It's one that I like look at that solid trend and even though it's overbought, and that's what worries me with this one. I will say neutral on this just because it is so overbought and could easily drop off a bit more, but it has been a great company in the past.
Tractor Supply is another one I've owned in the past, and it's come back up. Still, I will stay clear for the moment or, at least, best neutral, just like the way the chart pattern forms.
Petco health and wellness is a 2.6 billion dollar company lovely ticker woof woof woof downward trend. Has it got a base at eight could do what's the upside 21, so 100 to the upside if it has bottomed, but has it bottomed, well there's only from what nine dollars it can only go down nine dollars so you know what your downside is it's not going to go bust famous last words. So you're looking for 100 to the upside and 50 to the downside, so that's not too bad.
Burlington stores that it shot up now it's paused, it'll probably resume back upwards again. Can it go from 211 to 300, so 50 return it's feasible in the next year or two? It is feasible, but I'm still more cautious.
Ross stores a good nice upward trend. It's the momentum monthly momentum looks like it's paused a bit before rising, and some of these pools they pull back, and that could go from 104, but what's the upside, 120? Well, it's not really great, is it?
TJX is neutral; I'm going to say neutral on that; you can analyze it yourself. By way of these, only three were on my approved filtered list; my pre-filter switch my clients receive alongside my monthly filters - Riley, Tractor Supply, and TJX were the three which were on the approved filtered list, and the rest were not. That gives you some extra idea; my proof of this would go through momentum. We go through valuation, revenue, and growth, so we filter more than any banks do, but that's what it was.
Alpesh Patel OBE