The escalating tariff war kicked off by President Donald Trump has lowered the valuations of companies across multiple sectors. Investors now worry that further escalations in tariffs could tip the U.S. economy into a recession, which may further accelerate the selloff.
With such concerns swirling, investors should focus on creating a well-diversified portfolio that lowers overall risk. In this article, I have identified two relatively recession-resistant stocks that are top investment options right now.
Is Walmart Stock a Good Buy Right Now?
With a market cap of $684.4 billion, Walmart (WMT) is the largest retailer in the world in terms of revenue. Despite its massive size, Walmart grew its sales by 4.1% year-over-year in Q4 of its fiscal 2025. Its adjusted operating income increased 9.4% in Q4 and nearly 10% in fiscal 2025, outpacing sales growth for the second consecutive year.
Technology innovation has been a critical driver of Walmart’s success. Walmart is leveraging artificial intelligence and automation to improve customer experience, optimize supply chains, and boost associate productivity. Notable tech initiatives include an AI agent called “Wally” that helps merchants identify and resolve inventory issues, and coding assistance tools that saved approximately 4 million developer hours last year.
E-commerce has been particularly strong, with 16% growth in Q4. In the quarter ended in January, e-commerce revenue accounted for 18% of total sales. Walmart has expanded same-day delivery to 93% of U.S. households and reports that over 30% of orders now include convenience fees for expedited delivery. The company also recently launched same-day pharmacy delivery, integrating pharmacy, general merchandise, and grocery in a single online order.
Walmart’s diversification into higher-margin businesses is yielding significant results. Global advertising grew 29% to $4.4 billion for the year, with Walmart Connect in the U.S. growing 24% in Q4. Marketplace revenue increased 34%, with nearly 50% of orders fulfilled through Walmart Fulfillment Services. Global membership income rose 21% to $3.8 billion, with Sam’s Club membership growing 13% in the U.S.
Walmart projects 3%-4% consolidated net sales growth for fiscal 2026, with operating income growing faster at 3.5%-5.5%.
Out of the 36 analysts covering WMT stock, 30 recommend “Strong Buy,” four recommend “Moderate Buy,” and two recommend “Hold.” The average target price for Walmart stock is $109.94, indicating upside potential of 30% from current levels.
Is Netflix Stock a Good Buy Right Now?
Like Walmart, Netflix (NFLX) is a household name with a market cap of $393 billion. In Q4 2024, Netflix delivered exceptional financial results, as top-line growth approached 20%. This performance is remarkable, given that the streaming behemoth is already operating at a massive scale with over 300 million subscribers and $39 billion in annual revenue.
According to CFO Spence Neumann, Netflix’s resurgence stems from two tactical initiatives: addressing password sharing and developing an advertising business. The paid sharing solution has now been fully operationalized globally, creating a more effective “value translation engine” to capture demand from expanding entertainment offerings. Meanwhile, the advertising tier shows strong adoption, accounting for 55% of new sign-ups in Q4 across Netflix’s 12 ad markets, with memberships increasing approximately 30% quarter-over-quarter.
Content remains the cornerstone of Netflix’s strategy, with the company emphasizing its ability to deliver more entertainment value per dollar spent. Cash content spending is projected to increase from $17 billion in 2024 to $18 billion in 2025, a disciplined approach that has seen content costs grow at just 3% CAGR over the past five years while revenues have grown in the low to mid-teens. Netflix attributes this improved return on content investment to better allocation across genres and regions and enhanced monetization capabilities.
Live events emerged as a significant growth driver, with two NFL Christmas Day games becoming the most-streamed NFL games ever, and initial results from WWE Raw exceeding expectations with approximately 5 million viewers in its first week. Netflix executives say they will continue to focus on high-profile live events.
Netflix is expanding beyond its core offerings with investments in gaming and live events, while its global development capabilities continue to produce hits from diverse markets.
Netflix’s growth story is far from over as it is estimated to increase sales to $44.3 billion in 2025 and $49.7 billion in 2026. Comparatively, adjusted earnings are forecast to expand from $19.83 per share in 2024 to $24.9 per share in 2025. So, priced at 36x forward earnings, the tech stock is expensive.
Out of the 41 analysts covering NFLX stock, 26 recommend “Strong Buy,” two recommend “Moderate Buy,” 12 recommend “Hold,” and one recommends “Moderate Sell.” The average target price for Netflix stock is $1,074.26, indicating upside potential of roughly 20% from current levels.
