The key question facing investors right now is whether the COVID-19 pandemic and the social isolation measures being taken to combat it will tip the economy into a deep and extended recession. Right now, the extent of the damage that coming is still hard to accurately predict.
But, assuming that a long downturn is imminent (or has already begun) investors can get some protection against it by buying stocks of companies that have proved resilient during previous recessions. In this context, auto parts retailer O'Reilly Automotive (NASDAQ: ORLY), contact lens manufacturer The Cooper Companies (NYSE: COO), and animal health company Zoetis (NYSE: ZTS) are worth a look.
Auto parts retailers are traditionally seen as recession-resistant. Consumers are more likely to defer purchases of new vehicles during economic downturns, which means they have to keep their older ones running. And the longer those older cars are kept on the road, the more they will need repairs and replacement parts.