5 Best Recession Stocks to Buy According to Wells Fargo

In this article, we will look at 5 best recession stocks to buy according to Wells Fargo. If you want to explore similar stocks, you can also take a look at 10 Best Recession Stocks to Buy According to Wells Fargo.

5. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 64

Wells Fargo named The Coca-Cola Company (NYSE:KO) among its top 5 consumer staples picks for a recession. We included The Coca-Cola Company (NYSE:KO) in our rankings because of the company’s dividend history, global presence, and pricing power over peers. As of June 22, the stock has a forward dividend yield of 2.96% and has gained 11.25% over the past twelve months.

Another major American bank, Morgan Stanley, compiled a list of “top stocks insulated from risk with recession not fully priced in”, in which they ranked The Coca-Cola Company (NYSE:KO). Morgan Stanley analysts have an Overweight rating on The Coca-Cola Company (NYSE:KO) and see an upside to the stock’s price target as we progress into 2023.

Insider Monkey spotted 64 hedge funds bullish on The Coca-Cola Company (NYSE:KO) at the close of Q1 2022. The total stakes of these funds came in at $29.17 billion, up from $28.61 billion a quarter ago with 70 positions. 

As of March 31, Berkshire Hathaway owns 400 million shares of The Coca-Cola Company (NYSE:KO), making it the top shareholder in the beverages giant.

ClearBridge Investments mentioned The Coca-Cola Company (NYSE:KO) in its “Dividend Strategy” fourth-quarter 2021 investor letter. Here is what the firm said:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like consumer staples (Coca-Cola). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”