Rattled by the Stock Market Sell-Off? These 3 Stocks Outperformed the S&P 500 During the Great Recession
Portfolio Pulse from
The article analyzes three stocks that performed well during the Great Recession (2007-2009): Netflix, Ross Stores, and Vertex Pharmaceuticals. Each company demonstrated unique strengths that helped them outperform the S&P 500, which fell 36% during that period. These stocks potentially offer insights into recession-resistant investments.
March 28, 2025 | 10:45 am
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Netflix grew 77% during the 2007-2009 recession, driven by its early streaming service and affordable entertainment option. Currently trading at a P/E of 48, the stock could be vulnerable but remains potentially attractive during economic downturns.
Netflix's low-cost entertainment service and historical performance suggest it could withstand economic challenges by offering affordable content alternatives.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Ross Stores grew 51% during the Great Recession by offering discounted brand-name products. With conservative 2025 forecasts and a focus on low-cost merchandise, the company could navigate potential economic challenges effectively.
Ross Stores' business model of selling discounted merchandise positions it well to attract budget-conscious consumers during economic downturns.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Vertex Pharmaceuticals grew 18% during the Great Recession and has since transformed into a highly profitable pharmaceutical company with $11 billion in annual sales and promising R&D pipeline.
Vertex's strong profitability, diverse treatment portfolio, and ongoing R&D make it an attractive long-term investment with potential resilience during economic challenges.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80