I'd Double Down on These 2 Stocks Despite the Recession Fears
ID Buy These 2 Stocks Right Now, Even With a High-Cost Environment
By David Kretzmann, Motley Fool
April 5, 2025
The cost of living is skyrocketing, and investors are wondering if they should sit on the sidelines. But what if you could find stocks that would thrive in this high-cost environment? I've identified two companies that I believe would continue to perform well, even as prices rise.
- The Home Depot (HD)
The Home Depot is a household name, and for good reason. As housing prices and construction costs rise, homeowners are more likely to invest in their properties to increase their value. This trend would benefit The Home Depot, which offers a wide range of home improvement products and services.
In the fourth quarter of 2024, The Home Depot reported a 4.5% increase in same-store sales, driven by strong demand for lumber, appliances, and building materials. The company has a track record of adapting to changing market conditions, and its leadership in the home improvement space makes it a compelling investment in a high-cost environment.
- Procter & Gamble (PG)
Procter & Gamble is another company that would benefit from the rising cost of living. As prices increase, consumers are more likely to seek out trusted brands that offer value and quality. P&G has a portfolio of iconic brands, including Tide, Pampers, Gillette, and Oral-B, which are staples in many households.
In the fourth quarter of 2024, P&G reported a 5.1% increase in organic sales, driven by strong demand for its consumer goods. The company has a history of innovating and adapting to changing market conditions, and its diversified portfolio makes it well-positioned to continue performing well in a high-cost environment.
While no investment is immune to market fluctuations, I believe The Home Depot and Procter & Gamble would be strong additions to a diversified portfolio. Their strong track records, diversified portfolios, and adaptability to changing market conditions make them attractive investments, even in a high-cost environment.