In this article, we will be looking at Jim Cramer’s recession-proof stock picks.
The recent political gridlock in the U.S. is making investors nervous about the impact this would have on their investments. Treasury Secretary Scott Bessent has already turned the market’s attention towards the possibility of the government shutdown shaving points off GDP growth. Scott believes that the shutdown could undercut one of the few steady bright spots in an otherwise fragile recovery.
Private payrolls slipped by 32,000 in September, and layoffs have been reaching their record high since 2020, when the world was taken over by the pandemic lockdown. Through these figures, the labor market is ringing alarm bells that cannot be ignored. The uncertainty has also reached the Federal Reserve’s doorstep. CNBC reported that markets are now pricing in a 100% probability of a rate cut in October. Meanwhile, the expectation of another rate cut before the end of the year is growing. Though investors may benefit from short-term relief through lower rate cuts, they are very much exposed to the rising downside risks.
So, how to protect portfolios when the policy environment looks increasingly unstable? This is where the host of CNBC’s Mad Money and a veteran market commentator, Jim Cramer, recession-proof picks comes into play. Based on his strategy to focus more on stocks that can weather economic storms, we have brought to you a few top picks you could add to bring stability to your portfolio amid uncertain economic conditions.
Our Methodology
We have compiled our list of Jim Cramer’s recession-proof stock picks by following a few criteria. Primarily, we have included only those stocks that have gained a mention from Jim Cramer. For ranking the stocks, we have used the number of hedge funds as of the second quarter of 2025. We gathered this data from the Insider Monkey database. All the data used in the article was taken from financial databases and analyst reports, with all information updated as of October 5, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Realty Income Corporation (NYSE:O)
No. of Hedge Funds: 27
Realty Income Corporation (NYSE:O) takes a spot among Jim Cramer’s recession-proof stock picks. Jim Cramer prefers Realty Income Corporation (NYSE:O) over Gladstone Land while the former announces $800 million notes issuance.
On August 6, 2025, Realty Income Corporation (NYSE:O) reported a revenue of $1.41 billion for the second quarter ended June 2025. The figure suggests a 5.3% increase compared to the same quarter previous year. The revenue beat the consensus estimate by 1.04% while it fell behind the EPS estimate by -0.94%, reaching $1.05. On September 25, 2025, the company entered a purchase agreement with several underwriters. The agreement allows for the issue and sale of $800 million in aggregate principal amount of notes, split between 3.950% Notes due 2029 and 4.500% Notes due 2033. Following the decision, the stock’s weekly performance has seen a slight uptick of 0.13%.
In a lightning round, played earlier this year, on March 19, 2025, Jim Cramer responded to a caller’s stock question using the following statement.
“I’m going to see your Gladstone Land and raise you with Realty Income.”
With Cramer emphasizing the importance of Realty Income Corporation (NYSE:O) in the REITs market, the stock is also backed by 27 hedge funds signaling confidence in its income-generating potential.
Founded in 1969 and headquartered in California, Realty Income Corporation (NYSE:O) is a major REIT, known for its prompt monthly dividend payments. The company owns and leases a diversified portfolio of over 15,000 single-tenant commercial properties under long-term net lease agreements.
11. ONEOK, Inc. (NYSE:OKE)
No. of Hedge Funds: 44
ONEOK, Inc. (NYSE:OKE) holds a rank in the list of Jim Cramer’s recession-proof stock picks. Cramer assigns a Buy rating to the stock amid the completion of a $3 billion public offering.
On August 12, 2025, ONEOK, Inc. (NYSE:OKE) announced the completion of its $3 billion public offering. The company intends to use the proceeds to meet its outstanding commercial paper obligations and senior notes due in September 2025. Following the completion, the stock receives mixed opinions. Bank of America, for instance, lowered the stock’s price target from $109 to $100 while maintaining a Buy rating on the stock.
The stock’s monthly performance also saw a decline of -1.33%. However, Jim Cramer remains confident in the stock and assigns a Buy when addressing a caller’s question in the lightning round.
“Absolutely. Walter Hulse, CFO there is doing an amazing job. So is Pierce Norton. I think that’s a buy. I can’t believe it’s this low.”
Insider Monkey database noted 44 hedge funds holding ownership stakes in ONEOK, Inc. (NYSE:OKE), signaling strong institutional interest.
Founded as the Oklahoma Natural Gas Company in 1906, ONEOK, Inc. (NYSE:OKE) currently runs its operations from Oklahoma. Leader in North American energy infrastructure, the company operates an extensive network of pipelines and assets for NGLs, refined products, and crude oil.
