Worried About a Recession? 2 Resilient Stocks to Buy Now
High inflation and general economic woes may have been preoccupying you for a while -- and now, fears of a recession look even more likely to become a reality. The Federal Reserve recently predicted that the United States is heading for a mild one later this year.
The good news is the Fed expects the recovery from that recession to start next year. So, these difficult times may not last long. Meanwhile, you can invest in companies whose growth isn't tied to the macroeconomic situation. You can find plenty of them in the world of healthcare. That's because people need their medical treatments no matter what the economy is doing. Here are two resilient healthcare stocks to buy now.
1. Pfizer
These days, Pfizer (PFE 0.39%) is best known for its coronavirus vaccine and treatment. But the company boasts a large portfolio of drugs that treat a broad array of conditions. And right now, Pfizer is in the middle of a particularly exciting period.
Over the 18-month span that began in January, the big pharma company expects to have as many as 19 new products on the market and new indications for previously approved treatments. Four of these will come from business development deals it announced recently.
All of this should result in at least about $45 billion in revenue in 2030. That would more than compensate for about $17 billion in lost revenue the company expects as some of its older blockbusters lose exclusivity later this decade.
Meanwhile, its coronavirus programs are far from done producing revenue. Yes, demand is declining. But the coronavirus vaccine market should eventually become much like the flu vaccine market. Pfizer predicts its coronavirus products will continue to bring in billions of dollars in annual sales.
Pfizer also is boosting its research and development spending, and prioritizing across its pipeline to advance the candidates that promise breakthroughs and the highest returns.
Today, you'll pay about 11 times forward earnings estimates for Pfizer shares. That seems dirt cheap for a solid pharma giant with a clear pathway to growth.
2. McKesson
McKesson (MCK 0.12%) shares beat the bear market last year -- and for good reason. The company continued to perform well even as the economy faltered. McKesson distributes medical products -- and it also offers various services to pharmacies, pharmaceutical companies, and medical practices. All of these services provide strong revenue streams during any economic situation.
As a result, McKesson has grown revenue over time -- and generated high levels of free cash flow.对付衰退1
