5 Recession-Proof Stocks to Buy and Hold

In this article, we discuss 5 recession-proof stocks to buy and hold. If you want to see some more stocks that can withstand recession, click 10 Recession-Proof Stocks to Buy and Hold.

5. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 41

The Kroger Co. (NYSE:KR) is an Ohio-based retail chain that operates a network of supercenters and hypermarkets across the United States. Companies like The Kroger Co. (NYSE:KR) can withstand recessionary periods since demand for groceries and household essentials remains largely inelastic. 

The Kroger Co. (NYSE:KR) posted its Q4 results on March 3, announcing earnings per share of $0.91, beating consensus estimates by $0.17. Revenue over the period equaled $33.05 billion, up 7.52% year-over-year, outperforming market estimates by roughly $431 million. 

Scotiabank analyst Patricia Baker on March 10 raised the price target on The Kroger Co. (NYSE:KR) to $64 from $60 and kept an Outperform rating on the shares. The analyst noted that The Kroger Co. (NYSE:KR) reinforced its commitment to deliver 8%-11% total shareholder returns annually. Additionally, The Kroger Co. (NYSE:KR)’s successful execution on “Restock Kroger” and the business transformation under this initiative should enhance investor confidence, Baker stated in a bullish thesis. 

In the fourth quarter of 2021, 41 hedge funds were bullish on The Kroger Co. (NYSE:KR), up from 39 funds in the previous quarter. Berkshire Hathaway owns the biggest stake in The Kroger Co. (NYSE:KR), with 61.4 million shares worth $2.7 billion.