2 Recession-Proof Stocks to Buy as Goldman Sachs Sounds Alarm (2025)

Investors are bracing themselves for a market storm as retaliatory tariffs are set to take effect on April 2nd. This will be followed by additional auto tariffs on April 3rd. Tariff fears have already dragged the market into a correction, and fear is mounting that an even deeper selloff could hit if the Trump administration holds firm on its trade policies.

So far, the administration has shown no signs of backing down. If positive news fails to emerge and countries respond with their own tariffs, stocks might plummet further. President Donald Trump has upped the ante by threatening even broader tariffs if nations retaliate or turn to third parties to diversify their trade. This escalating trade war could easily spiral out of control and spark a recession.

The stakes feel higher when you factor in inflation. Tariffs could drive prices up sharply. If that happens, the Federal Reserve might have no choice but to keep interest rates elevated or even raise them to curb the pressure. Recent comments from Atlanta Fed President Raphael Bostic don’t inspire much confidence either. He’s projecting just one rate cut this year, and there are economists who say there’s little chance that the Federal Reserve will cut at all this year. It’s a good idea to rotate some of your gains into some stocks that are recession-resistant. Here are three that are close to “recession-proof.”

Albertsons Companies (ACI)

Albertsons Companies (NYSE:ACI) has seen some ups and downs in the past few years due to a proposed merger with Kroger (NYSE:KR). It surged in late 2021 as investors flocked to essential service providers amid pandemic uncertainty, only to slide back down in late 2022 when economic reopening cooled the hype. Since then, Albertsons has held remarkably steady, even as tariff-related fears have rattled markets in 2025.

Albertsons has a wide footprint and a diversified business. The balance sheet is solid too, and has manageable debt with a consistent dividend yield of 1.92% as of writing. Earlier this year, Albertsons raised its profit forecast and signaled confidence that it could handle competition from both Walmart (NYSE:WMT) and Kroger. Speaking of Kroger, this company proposed a $25 billion acquisition of Albertsons. That proposal hit a wall due to courts blocking it, and while it did bring the stock down from highs, I believe it’s a long-term positive. The proposed valuation was over double Albertsons’ current market cap. Plus, Albertsons could pocket a $600 million termination fee from Kroger. There’s an ongoing lawsuit over that fee.

The return on equity at 35.6% is better than 91.48% of companies in the retail industry and you’re paying only 9 times earnings if you exclude one-time expenses. The 3-year dividend growth rate is also at 33.9%, which is better than 88.41% of its peers.

Zoetis (ZTS)

Zoetis (NYSE:ZTS) sells medicine and vaccine products for animals. It serves both companion animals and livestock. It has a well-diversified product portfolio across multiple animal-related products.

The stock was one of the most consistent on the stock market up until the 2021 bubble burst. After that, the stock declined sharply and has mostly traded sideways since bottoming out in late 2022. However, the core business is rock-solid.

The company’s operating margin is at 36.7% and is better than 97.6% of its industry peers. Moreover, it is trading at a historically low price-earnings ratio below 30. The stock historically traded at 39.4 times earnings.

Plus, its growth hasn't fallen off sharply since 2021 and has grown from $7.78 billion in 2021 to $9.26 billion in 2024, with operating cash flow also increasing significantly, from $2.21 billion in 2021 to $2.95 billion in 2024. The company has now begun aggressive share buybacks along with a dividend yield of around 1.1%. The payout ratio is just 0.29, so there's significant upside ahead for both the stock and the dividend payout.