Still Worried About a 2024 Recession? 7 Stocks to Watch.

One of the main themes of 2023 may be relief – that is, relief that we avoided a downcycle – and so it begs the question: why talk about 2024 recession worries? More to the point, why deal with recession stocks? If everything appears to be moving according to plan, targeting investments that may best weather an economic storm could incur an opportunity cost.

Specifically, by being too conservative, you can end up losing the game. Think about a football game where the team holding onto a slim lead goes into a prevent defense, only to see the opposing side carve up yards and rack up field goals. Still, there is a case to be made about a 2024 recession. Fundamentally, we’re not guaranteed to be out of the woods.

After all, if financial engineering from the Federal Reserve is all that’s necessary to avoid catastrophic damage, why not engineer all the time? It may be a stupid question, but seriously: if that’s all it takes, why worry about any downturn? The Fed Chair has your back. Also, experts have warned against feeling too confident about the current financial stability.

If you’re skeptical, you might want to watch these recession stocks. Costco (COST) If you’re worried about a 2024 recession, Costco (NASDAQ: COST ) – not Fed Chair Jerome Powell – has your back. I’m not going to guarantee anything. However, COST is one of those boring everyday enterprises that is essentially permanently relevant.

Have you tried to shop at Costco? At almost every time slot, it’s difficult to find parking close to the store. It’s almost like remote workers aren’t working. Weird. Let’s get into the data. Market research into the U.S. warehouse club channel growth pegs the expansion at a compound annual growth rate (CAGR) of 6% since 2007.

While that might not sound like a dramatically high figure, keep in mind that the warehouse club and supercenter industry in this country generates more than $500 billion in revenue . Plus, the sector employs over 1.5 million people. I just don’t see COST going anywhere but steadily higher. Turning to Wall Street, analysts rate shares a consensus strong buy with a $671.28 average price target.

It ain’t much, I agree. However, if you’re seeking reliability, COST is one of the recession stocks to consider. Sempra (SRE) Based in San Diego, California, Sempra (NYSE: SRE ) is a public utility holding company. It’s one of the largest such enterprises in this nation, with nearly 40 million customers per its public profile .

Wall Street analysts love the company, pegging SRE a consensus strong buy . In fairness, the average price target of $81 isn’t much to write home about. But do keep in mind that you’re getting a dividend yield of 3.15% . One of my favorite ideas for a possible 2024 recession – or any recession of any future time period – is Sempra and its ilk.

Utilities inherently benefit from the natural monopoly concept. Basically, the barriers of entry – costs, regulations, entrenched competition – prevent fresh rivalries from sprouting. But then, what about this California exodus we keep hearing about? It’s true but you don’t want to paint the Golden State with a broad brush.

Ideologically, San Diego is more on the conservative, family friendly side of the spectrum. And here, America’s Finest City’s growth projection won’t peak until 2042 . That’s called a long runway, allowing investors to soothe their recession worries. Lowe’s (LOW) If you’re looking to batten down the hatches for a possible 2024 recession without going all doomsday bunker, Lowe’s (NYSE: LOW ) may be your ideal opportunity.

Leveraging a home improvement business, Lowe’s is there when Murphy’s Law pays you a visit. The man’s been busy since 2020. As such, that may have inspired analysts to rate shares a moderate buy . Of course, with an average price target of $226.85, we’re not really talking about getting obscenely rich here.

Rather, we’re banking on the reality that if something goes wrong, a strong incentive to address the problem exists. Obviously, there’s more willingness during economically prosperous times. But the necessity still reigns supreme. That’s part of the reason why sales can accelerate for home improvement retailers ahead of a storm.

Cynically, you got to do what you got to do. Also, investors seeking ideas to soothe their recession worries get a bonus with Lowe’s. Right now, shares trade at a price/earnings to growth (PEG) ratio of 0.69X , favorably lower than the sector median 1.31X. McDonald’s (MCD) As a component of the discretionary retail industry, McDonald’s (NYSE: MCD ) might not immediately strike someone as one of the securities to buy due to 2024 recession worries.

However, as an icon of American capitalism, analysts disagree. In fact, they rate shares a consensus strong buy with a price target of $316.79. Also, the high side target lands at $383. Fundamentally, McDonald’s should still benefit from the trade down effect. While many households are hurting and therefore probably won’t dine at luxury establishments, that doesn’t mean they won’t go out at all.

Here, the Golden Arches provides a quick pick me up that simultaneously may offer a psychological boost. I mean, they don’t call it comfort food for nothing. Also, according to Precedence Research, investors don’t have to worry that the health conscious Generation Z will kill the underlying domestic industry.

Indeed, experts see a CAGR of 3.7% from 2023 to 2032, eventually hitting a valuation of $180.32 billion . Plus, McDonald’s delivers solid revenue growth and is consistently profitable. Thus, it makes a great case for recession stocks. Procter & Gamble (PG) An almost self explanatory idea for 2024 recession worries, Procter & Gamble (NYSE: PG ) just makes sense in practically every context.

It’s a consumer goods giant, thus serving everyday consumer needs. In other words, it’s permanently relevant. Analysts agree – because who wouldn’t? – pegging shares a consensus moderate buy with a $163.56 average price target. That’s not bad implied growth for a boring enterprise. Again, if you’re looking for relevant recession stocks, it’s difficult to ignore PG.

Let’s think about it. If an economic downcycle occurs, will you still brush your teeth? Will you still take showers? And after you’re done using the “facilities,” will you take care of yourself? If you answered “yes” to these questions – and you really should answer in the affirmative – that’s your bull case for PG.

In terms of hard data, experts note that the global consumer product and retail market should grow at a solid CAGR of 7.2% . Now, the thing about consumer goods is that the sector is super competitive. After all, we’re dealing with a commoditized industry. However, given P&G’s global brand awareness across generations , I think PG makes a strong case for recession stocks.

Kenvue (KVUE) A spinoff from pharmaceutical and medical technologies giant Johnson & Johnson (NYSE: JNJ ), Kenvue (NYSE: KVUE ) will now swim solo in the consumer healthcare products market. Admittedly, KVUE suffered a poor performance in 2023. However, shares have been picking up since late October.

Analysts are keeping the faith, pegging shares a moderate buy with a $24.30 average price target. That’s decent upside potential for stocks based on 2024 recession worries. Fundamentally, I appreciate Kenvue because everybody gets sick. Or if not sick, they get an occasional boo boo, which requires bandages or what have you.

Just looking at one segment of the broader industry – over the counter drugs – Precedence Research estimates that the subsegment reached a valuation of $121.13 billion in 2022 . By 2030, the sector could be worth $187.75 billion, representing a CAGR of 5.6%. It’s not blistering growth but it’s dependable and credible growth.

With that in mind, I think investors can forgive the red hot trailing year earnings multiple of 42.8X . Yeah, it looks overpriced but it’s almost sure to enjoy business expansion. And if you’re committed to recession stocks, KVUE overall looks attractive. Ollie’s Bargain Outlet (OLLI) With shares of Ollie’s Bargain Outlet (NASDAQ: OLLI ) falling more than 8% since the start of January, OLLI is admittedly getting 2024 off to a rough start.

However, if you believe in the narrative of discount retailers, then OLLI should be on your radar. As a confidence boost, analysts rate shares a consensus moderate buy with an average price target of $87.77. That implies upside potential of nearly 26%. On a fundamental note, consumers should gravitate toward discount retailers for obvious reasons.

You’re looking at a situation where Americans’ collective credit card debt exceeded the $1 trillion level . Of course, we should be careful about jumping to doom and gloom conclusions. Still, the patently obvious point remains. If the average household was really doing that well, there would be no need to expose oneself to this liability.

Yeah, yeah, yeah – low interest rates. I’m sorry but credit card companies are not giving you the federal funds rate. Anyways, the last point about OLLI is the underlying company’s gross margins . While the metric took a hit in fiscal year 2023 (ended January), it has improved significantly since then.

That shows excellent pricing power, making OLLI one of the recession stocks to consider. On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines ..