5 Companies and Industries That Make Money During A Recession

In this article, we will be taking a look at 5 companies and industries that make money during a recession. To read our detailed analysis of inflation-resistant companies and sectors, you can go directly to see the 10 Companies and Industries That Make Money During A Recession.

5. AutoZone, Inc. (NYSE:AZO)

Industry: Automotive Retail

S&P 500 Outperformance in 2008: 27.12%

AutoZone, Inc. (NYSE:AZO) is a retailer and distributor of automotive replacement parts and accessories. The company is based in Memphis, Tennessee.

On December 7, David Bellinger at MKM Partners reiterated a Buy rating on AutoZone, Inc. (NYSE:AZO)  shares while raising his price target to $2,650.

Vehicle part retailers like AutoZone, Inc. (NYSE:AZO) tend to perform well in a weak economy, as more people choose to repair their cars instead of buying new ones. This was proven by the returns generated by the company between October 9, 2007, and March 9, 2009, which stood at 22%. The company also grew its sales by 5.7% in 2008.

Carillon Tower Advisers, an investment management company, mentioned AutoZone, Inc. (NYSE:AZO) in its second-quarter 2022 investor letter. Here’s what the firm said:

“AutoZone, Inc. (NYSE:AZO) sells automotive replacement parts and accessories. The company reported another solid quarterly update that highlighted particularly robust growth in its commercial segment, market share gains, and stable gross margins. Additionally, investors have appreciated the company’s historically stable business model that is positioned to perform well in periods of economic stress.”