In this article, we will take a look at the 5 Best “Sin Stocks” to Buy for Recession Protection. For a deeper discussion and an expanded list, please see the 8 Best “Sin Stocks” to Buy for Recession Protection.
5. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)
Number of Hedge Fund Holders: 36
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) ranks among the best sin stocks to buy for recession protection. On June 12, Citizens reaffirmed its Market Outperform rating for Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) and kept a $55 price target on the company’s shares. The firm had an optimistic outlook on casino REITs, noting a lack of formal market competition, solid deal pipelines, and robust balance sheets.
This optimistic feeling was highlighted in Gaming and Leisure’s first-quarter performance. The gaming-focused REIT announced earnings per share of $0.82, up 6.49% from the expected $0.77, while revenue came in at $420 million, compared to $417.27 million.
Also during the quarter, Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) executed two major acquisitions totaling $727 million. It bought Bally’s Lincoln real estate assets, as well as the land related to The Cordish Companies Live! Casino and Hotel Virginia. Through the acquisitions, the REIT has gained premium assets that boost AFFO per share.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is a real estate investment trust (REIT) that acquires, owns, and manages gaming and entertainment properties, such as casinos and racetracks.
4. British American Tobacco plc (NYSE:BTI)
Number of Hedge Fund Holders: 41
British American Tobacco plc (NYSE:BTI) ranks among the best sin stocks to buy for recession protection. On June 8, Morgan Stanley raised its price target for British American Tobacco plc (NYSE:BTI) from GBX 4,900 to GBX 4,950, retaining an Overweight rating on the stock. The new target represents a gain of more than 7% over the existing share price.
Furthermore, in response to British American Tobacco’s first-half 2026 trading statement, BofA Securities reaffirmed a Buy rating on the company’s shares. British American Tobacco plc (NYSE:BTI) reaffirmed its full-year projection for 2026 at the low end of its range. The company estimates a revenue increase of 3% to 5% along with adjusted EBIT growth of 4% to 6%, with results projected to be skewed toward the latter half.
While US vapor performance was noted as a clear winner in the trading statement, results in the Asia-Pacific, Middle East, and Africa areas came in poorer than projected, prompted by weakness in Bangladesh and Heated Tobacco.
British American Tobacco plc (NYSE:BTI) is a leading multi-category consumer goods company that provides tobacco and nicotine products to millions of consumers around the world.
3. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Holders: 51
VICI Properties Inc. (NYSE:VICI) ranks among the best sin stocks to buy for recession protection. On June 15, VICI Properties Inc. (NYSE:VICI) secured the Carambola Beach Resort in St. Croix, U.S. Virgin Islands, for refurbishment into a Club Med resort, marking the company’s comeback into US territory. VICI Properties Inc. (NYSE:VICI) will fund the total renovation of the 150-key facility as part of the joint venture deal, while Club Med will sign a long-term triple-net contract.
Meanwhile, on May 12, Scotiabank boosted its price objective for VICI Properties Inc. (NYSE:VICI) from $30 to $32, maintaining a Sector Perform rating on the stock.
The first-quarter earnings in the net lease REIT industry were marked by higher AFFO and investment projections throughout the firm’s coverage, with several REITs offering forward equity either during or after the quarter to meet year-end funding requirements. In that regard, VICI’s AFFO increased 5.7% to $650.9 million from $616.0 million in Q1 2025.
VICI Properties Inc. (NYSE:VICI) is a real estate investment trust focused on owning and acquiring gaming, hospitality, wellness, entertainment, and leisure properties that operate under long-term triple net leases.
2. Churchill Downs Incorporated (NASDAQ:CHDN)
Number of Hedge Fund Holders: 52
Churchill Downs Incorporated (NASDAQ:CHDN) ranks among the best sin stocks to buy for recession protection. On June 12, Truist Securities restated its Buy rating and $145 price target for Churchill Downs Incorporated (NASDAQ:CHDN). The firm hosted the company’s CFO, Marcia Dall, and VP, IR, Sam Ullrich, alongside investors in Chicago.
Although investors were centered on the prospects for Derby 2027, not seeing any major developments, management remained optimistic about year-over-year growth and expectations for Derby Week expansion over time.
M&A was also a topic of discussion, with Truist stating that management would consider proposals without considering Derby, though management doesn’t consider recent industry action as a reasonable comparison.
Moreover, on May 26, Stifel reaffirmed its Buy rating and $139 price target for Churchill Downs Incorporated (NASDAQ:CHDN). Since late 2025, the firm has received an increasing number of inquiries from investors about a possible sale or other business moves concerning Churchill Downs’ regional gaming operations. Stifel stated that it is unaware of any M&A conversations but has looked into strategic options, with the firm seeing broader optionality.
Churchill Downs Incorporated (NASDAQ:CHDN) operates as a racing, online wagering, and gaming entertainment company. It is anchored by its flagship event, the Kentucky Derby. The company runs its business through three segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming.
1. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 78
Philip Morris International Inc. (NYSE:PM) ranks among the best sin stocks to buy for recession protection. Morgan Stanley boosted Philip Morris International Inc. (NYSE:PM)’s price objective to $200 from $190 on June 3, retaining an Overweight rating on the stock. The firm referenced the company’s planned launch of Zyn Ultra and an IQOS Japan revamp as reasons for the rating.
The same day, Stifel reaffirmed its Buy rating and $195 price target for Philip Morris International Inc. (NYSE:PM) following the company’s presentation at a conference. Stifel restated a Buy rating and a $195 price target for Philip Morris International Inc. (NYSE:PM) after the company’s conference presentation. Philip Morris observed that solid performance in its smoke-free and combustibles businesses helps mitigate headwinds not anticipated in the original forecast, including inflation and conflict-related disruptions.
Moreover, the company’s products, including ZYN ULTRA, will be available in the United States this month in 9mg and 11mg doses in a moist form, as well as 20 pouch cans. Stifel believes the introduction will help Philip Morris improve its market-share momentum and close the product and value gap with peers.
Philip Morris International Inc. (NYSE:PM) operates as a global tobacco company. Its products include cigarettes and smoke-free alternatives. Its smoke-free business also covers wellness and healthcare products, along with consumer accessories such as lighters and matches.
While we acknowledge the potential of PM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PM and that has 100x upside potential, check out our report about the cheapest AI stock.
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