Top Stocks to Buy Ahead of Potential Recession
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Abbott Laboratories' Resilience: Abbott Laboratories boasts a diverse portfolio across pharmaceuticals, medical devices, nutrition, and diagnostics, particularly leading in baby formula, ensuring high demand even during economic downturns, thus providing stable revenue streams for the company.
- Coca-Cola's Defensive Edge: As a consumer staples giant, Coca-Cola leverages its strong brand and diverse beverage offerings to maintain relatively stable performance during recessions, further bolstered by its 64 consecutive years of dividend increases, enhancing investor confidence.
- Walmart's Low-Price Strategy: Walmart's Every Day Low Price strategy and robust supply chain management allow it to offer affordable shopping options during economic downturns, with 90% of the U.S. population living within 10 miles of a store, maintaining its competitive edge in the retail market.
- Common Traits of the Three Companies: Abbott Laboratories, Coca-Cola, and Walmart are all Dividend Kings, with 54, 64, and 53 years of consecutive dividend increases respectively, providing investors with stable cash flow and an additional safety margin amid economic uncertainties.
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Analyst Views on ABT
Wall Street analysts forecast ABT stock price to rise
19 Analyst Rating
17 Buy
2 Hold
0 Sell
Strong Buy
Current: 87.770
Low
136.00
Averages
148.11
High
169.00
Current: 87.770
Low
136.00
Averages
148.11
High
169.00
About ABT
Abbott Laboratories is a global healthcare company. The Company’s principal business is the discovery, development, manufacture, and sale of a broad and diversified line of healthcare products. Its segments include Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Established Pharmaceutical Products segment is engaged in the international sales of a broad line of branded generic pharmaceutical products. Diagnostic Products segment is involved in the worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites. Nutritional Products segment is engaged in the worldwide sales of a broad line of adult and pediatric nutritional products. Medical Devices segment is involved in the worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation and diabetes care products. It serves people in more than 160 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AbbVie: A Top Pick in Uncertain Markets
- Stable Dividend Record: AbbVie has increased its dividend for 53 consecutive years since its spin-off in 2013, demonstrating business stability that attracts investors seeking safe investments in uncertain market conditions.
- Strong Sales Growth: AbbVie's two successors to Humira, Rinvoq and Skyrizi, are already generating higher sales than Humira at its peak, indicating the company's successful navigation of patent cliffs and laying a foundation for future growth.
- Relatively Undervalued Valuation: AbbVie’s forward P/E ratio of 14.7 is significantly lower than the healthcare sector's 16.8, highlighting its attractiveness among peers, especially as many other Dividend Kings are trading at higher valuations.
- Diverse Growth Drivers: AbbVie has enhanced its product portfolio through acquisitions of the antipsychotic drug Vraylar and migraine therapies Qulipta and Ubrelvy, increasing its growth potential and catering to various types of investors' needs.
See More
AbbVie: An Ideal Pick During Uncertain Times
- Stable Business Model: AbbVie has increased its dividend for 53 consecutive years since its founding in 1888, demonstrating strong business stability that attracts shareholders seeking safe investments, especially in uncertain market conditions.
- Strong Growth Prospects: AbbVie's revenue jumped 12.4% year-over-year in Q1 2026, while its competitor Hormel Foods only saw a 2% increase, showcasing its competitive edge and future growth potential in the pharmaceutical industry.
- Attractive Dividend Yield: With a dividend yield exceeding 3.2%, AbbVie significantly outperforms many other Dividend Kings, such as Walmart's 0.74%, making it more appealing to income-focused investors.
- Valuation Advantage: AbbVie's forward price-to-earnings ratio of 14.7 is below the healthcare sector's 16.8, indicating attractive investment value in the current market, particularly amid increasing economic uncertainty.
See More
Intuitive Surgical's Single-Port Platform Growth Potential
- Market Expansion Potential: Intuitive Surgical's single-port (SP) platform saw a 68% year-over-year increase in procedures in Q1 2026, significantly outpacing overall da Vinci procedure growth, indicating accelerated surgeon adoption and potential new market opportunities for the company.
- New Indications Driving Growth: The recent clearance for new procedures, including nipple-sparing mastectomy, broadens the clinical applicability of the SP platform, which is expected to enhance surgeon willingness to adopt robotic-assisted approaches, thereby driving market share growth.
- Ecosystem Investment: Intuitive Surgical is aggressively investing in the development of the SP ecosystem, launching the SP stapler to enhance surgical complexity while improving workflow through instrumentation enhancements and surgeon training, further strengthening its competitive position in the market.
- Strategic Positioning Debate: Management increasingly frames the SP platform not merely as a substitute for multi-port da Vinci procedures but as a tool for market expansion, particularly in historically open surgery or conventional laparoscopy, potentially attracting more surgeons to robotic technology.
See More
Three Recommended Recession-Resistant Stocks
- Abbott Laboratories' Resilience: Abbott Laboratories boasts a diverse portfolio across pharmaceuticals, medical devices, nutrition, and diagnostics, particularly leading in the baby formula market, ensuring stable demand even during economic downturns, which supports its financial performance.
- Coca-Cola's Innovation: As a consumer staples giant, Coca-Cola maintains relatively stable performance even in economic downturns due to its strong brand influence and diverse beverage portfolio, complemented by a 64-year history of consecutive dividend increases that bolster investor confidence.
- Walmart's Market Advantage: Walmart leverages its Every Day Low Price strategy and extensive store network to provide affordable shopping options during economic hardships, with 90% of the U.S. population living within 10 miles of its stores, solidifying its position in the retail market.
- Attraction of Dividend Kings: Abbott Laboratories, Coca-Cola, and Walmart are all Dividend Kings, with 54, 64, and 53 consecutive years of dividend increases respectively, making them safe havens for investors amid economic uncertainty, effectively cushioning against market volatility risks.
See More
Top Stocks to Buy Ahead of Potential Recession
- Abbott Laboratories' Resilience: Abbott Laboratories boasts a diverse portfolio across pharmaceuticals, medical devices, nutrition, and diagnostics, particularly leading in baby formula, ensuring high demand even during economic downturns, thus providing stable revenue streams for the company.
- Coca-Cola's Defensive Edge: As a consumer staples giant, Coca-Cola leverages its strong brand and diverse beverage offerings to maintain relatively stable performance during recessions, further bolstered by its 64 consecutive years of dividend increases, enhancing investor confidence.
- Walmart's Low-Price Strategy: Walmart's Every Day Low Price strategy and robust supply chain management allow it to offer affordable shopping options during economic downturns, with 90% of the U.S. population living within 10 miles of a store, maintaining its competitive edge in the retail market.
- Common Traits of the Three Companies: Abbott Laboratories, Coca-Cola, and Walmart are all Dividend Kings, with 54, 64, and 53 years of consecutive dividend increases respectively, providing investors with stable cash flow and an additional safety margin amid economic uncertainties.
See More
Seeking Stable Dividend Growth Amid Market Turbulence
- Dividend Growth Strategy: Trivariate Research emphasizes that in turbulent markets, investors should focus on companies with consistent dividend growth over the past five years for downside protection, especially as traditional defensive stocks now represent just over 10% of the S&P 500's market cap.
- Rollins Performance: Pest control company Rollins recently raised its dividend by over 10% to 18 cents per share, and despite a roughly 10% decline in its stock in 2026, analysts remain optimistic about its ability to deliver compounding growth, with Goldman Sachs reiterating a buy rating.
- Cheniere Energy Growth: Liquefied natural gas company Cheniere Energy increased its quarterly dividend by over 10% last October, currently yielding 0.9%, and its stock has risen 26% this year, benefiting from reduced LNG production in the Middle East.
- Analyst Support: Cheniere Energy's first-quarter results exceeded expectations, raising its adjusted EBITDA guidance to between $7.25 billion and $7.75 billion, with analysts bullish on its strong volume outlook and project execution, as 23 out of 24 analysts rate it a buy.
See More
AbbVie: A Top Pick in Uncertain Markets
- Stable Dividend Record: AbbVie has increased its dividend for 53 consecutive years since its spin-off in 2013, demonstrating business stability that attracts investors seeking safe investments in uncertain market conditions.
- Strong Sales Growth: AbbVie's two successors to Humira, Rinvoq and Skyrizi, are already generating higher sales than Humira at its peak, indicating the company's successful navigation of patent cliffs and laying a foundation for future growth.
- Relatively Undervalued Valuation: AbbVie’s forward P/E ratio of 14.7 is significantly lower than the healthcare sector's 16.8, highlighting its attractiveness among peers, especially as many other Dividend Kings are trading at higher valuations.
- Diverse Growth Drivers: AbbVie has enhanced its product portfolio through acquisitions of the antipsychotic drug Vraylar and migraine therapies Qulipta and Ubrelvy, increasing its growth potential and catering to various types of investors' needs.
See More
AbbVie: An Ideal Pick During Uncertain Times
- Stable Business Model: AbbVie has increased its dividend for 53 consecutive years since its founding in 1888, demonstrating strong business stability that attracts shareholders seeking safe investments, especially in uncertain market conditions.
- Strong Growth Prospects: AbbVie's revenue jumped 12.4% year-over-year in Q1 2026, while its competitor Hormel Foods only saw a 2% increase, showcasing its competitive edge and future growth potential in the pharmaceutical industry.
- Attractive Dividend Yield: With a dividend yield exceeding 3.2%, AbbVie significantly outperforms many other Dividend Kings, such as Walmart's 0.74%, making it more appealing to income-focused investors.
- Valuation Advantage: AbbVie's forward price-to-earnings ratio of 14.7 is below the healthcare sector's 16.8, indicating attractive investment value in the current market, particularly amid increasing economic uncertainty.
See More
Intuitive Surgical's Single-Port Platform Growth Potential
- Market Expansion Potential: Intuitive Surgical's single-port (SP) platform saw a 68% year-over-year increase in procedures in Q1 2026, significantly outpacing overall da Vinci procedure growth, indicating accelerated surgeon adoption and potential new market opportunities for the company.
- New Indications Driving Growth: The recent clearance for new procedures, including nipple-sparing mastectomy, broadens the clinical applicability of the SP platform, which is expected to enhance surgeon willingness to adopt robotic-assisted approaches, thereby driving market share growth.
- Ecosystem Investment: Intuitive Surgical is aggressively investing in the development of the SP ecosystem, launching the SP stapler to enhance surgical complexity while improving workflow through instrumentation enhancements and surgeon training, further strengthening its competitive position in the market.
- Strategic Positioning Debate: Management increasingly frames the SP platform not merely as a substitute for multi-port da Vinci procedures but as a tool for market expansion, particularly in historically open surgery or conventional laparoscopy, potentially attracting more surgeons to robotic technology.
See More
Three Recommended Recession-Resistant Stocks
- Abbott Laboratories' Resilience: Abbott Laboratories boasts a diverse portfolio across pharmaceuticals, medical devices, nutrition, and diagnostics, particularly leading in the baby formula market, ensuring stable demand even during economic downturns, which supports its financial performance.
- Coca-Cola's Innovation: As a consumer staples giant, Coca-Cola maintains relatively stable performance even in economic downturns due to its strong brand influence and diverse beverage portfolio, complemented by a 64-year history of consecutive dividend increases that bolster investor confidence.
- Walmart's Market Advantage: Walmart leverages its Every Day Low Price strategy and extensive store network to provide affordable shopping options during economic hardships, with 90% of the U.S. population living within 10 miles of its stores, solidifying its position in the retail market.
- Attraction of Dividend Kings: Abbott Laboratories, Coca-Cola, and Walmart are all Dividend Kings, with 54, 64, and 53 consecutive years of dividend increases respectively, making them safe havens for investors amid economic uncertainty, effectively cushioning against market volatility risks.
See More
Top Stocks to Buy Ahead of Potential Recession
- Abbott Laboratories' Resilience: Abbott Laboratories boasts a diverse portfolio across pharmaceuticals, medical devices, nutrition, and diagnostics, particularly leading in baby formula, ensuring high demand even during economic downturns, thus providing stable revenue streams for the company.
- Coca-Cola's Defensive Edge: As a consumer staples giant, Coca-Cola leverages its strong brand and diverse beverage offerings to maintain relatively stable performance during recessions, further bolstered by its 64 consecutive years of dividend increases, enhancing investor confidence.
- Walmart's Low-Price Strategy: Walmart's Every Day Low Price strategy and robust supply chain management allow it to offer affordable shopping options during economic downturns, with 90% of the U.S. population living within 10 miles of a store, maintaining its competitive edge in the retail market.
- Common Traits of the Three Companies: Abbott Laboratories, Coca-Cola, and Walmart are all Dividend Kings, with 54, 64, and 53 years of consecutive dividend increases respectively, providing investors with stable cash flow and an additional safety margin amid economic uncertainties.
See More
Seeking Stable Dividend Growth Amid Market Turbulence
- Dividend Growth Strategy: Trivariate Research emphasizes that in turbulent markets, investors should focus on companies with consistent dividend growth over the past five years for downside protection, especially as traditional defensive stocks now represent just over 10% of the S&P 500's market cap.
- Rollins Performance: Pest control company Rollins recently raised its dividend by over 10% to 18 cents per share, and despite a roughly 10% decline in its stock in 2026, analysts remain optimistic about its ability to deliver compounding growth, with Goldman Sachs reiterating a buy rating.
- Cheniere Energy Growth: Liquefied natural gas company Cheniere Energy increased its quarterly dividend by over 10% last October, currently yielding 0.9%, and its stock has risen 26% this year, benefiting from reduced LNG production in the Middle East.
- Analyst Support: Cheniere Energy's first-quarter results exceeded expectations, raising its adjusted EBITDA guidance to between $7.25 billion and $7.75 billion, with analysts bullish on its strong volume outlook and project execution, as 23 out of 24 analysts rate it a buy.
See More
