Trump’s tariffs have unleashed a wave of worry as companies and countries scramble to react.
As the US escalates its tariff war with China, investors are naturally worried about whether the two largest nations will engage in a bruising trade war.
These tariffs will also result in increased costs across many supply chains, leading to higher prices which will crimp consumer demand.
Lower demand, in turn, may tip the global economy into a recession.
Here are four recession-proof US stocks from the education, healthcare, and consumer staples sectors that you can consider adding to fortify your portfolio.
Duolingo (NASDAQ: DUOL)
Duolingo operates a mobile learning platform that helps its users learn languages by providing a fun, engaging, and effective learning experience.
The education provider reported a solid financial result for 2024.
Revenue jumped 40.8% year on year to US$748 million and the education firm churned out an operating profit of US$62.6 million, reversing the operating loss of US$13.3 million a year ago.
Net profit came in at US$88.6 million, registering a fivefold year-on-year surge over the US$16.1 million profit a year ago.
Duolingo also churned out a positive free cash flow of US$264.4 million, 89% higher than the previous year.
The education platform saw monthly active users climb 32% year on year to 116.7 million while paid users surged 43% year on year to 9.5 million.
Subscription bookings at the end of 2024 stood at US$730.7 million, a 47% year-on-year increase over the prior year.
Duolingo expects bookings to grow by 24% to 26% year on year while revenue is projected to increase by 28.7% to 30.8% year on year, showcasing the strong momentum for the company’s services.
Coursera (NYSE: COUR)
Coursera is one of the largest online learning platforms in the world with 168 million registered learners.
The company partners with more than 350 university and industry partners to offer a broad catalogue of content, courses, and credentials.
The education company reported a strong set of earnings for 2024.
Revenue rose 9.3% year on year to US$694.7 million while gross profit climbed 12.6% year on year to US$371.4 million.
Gross margin improved from 51.9% to 53.5%.
The business generated a significantly higher free cash flow of US$76.6 million for 2024 compared with just US$13.2 million a year ago.
Coursera enjoyed growth across its three divisions – consumer, enterprise, and degrees.
The company anticipates top-line revenue growth for 2025 and should also see adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) margin improvement.
Coursera is also planning to expand its entry-level professional certificates and usher in a new era of personalised, interactive online learning through its portal.
UnitedHealth Group (NYSE: UNH)
UnitedHealth Group is a healthcare company offering care aided by technology and data.
The company provides a full range of health benefits and enables affordable coverage while delivering access to high-quality care.
UnitedHealth reported a resilient set of results for 2024, with revenue up 7.7% year on year to US$400.3 billion.
Operating profit, however, dipped slightly by 0.2% year on year to US$32.3 billion because of higher medical costs.
Net profit (excluding exceptional items) inched up 1.5% year on year to US$22.7 billion.
The healthcare group also generated a positive free cash flow of US$20.7 billion for 2024.
UnitedHealth paid out a quarterly dividend of US$2.10, 11.7% higher than the US$1.88 paid a year ago.
UnitedHealth expects revenue to come in between US$450 billion to US$455 billion for 2025, representing growth of around 13% year on year at the midpoint.
Kenvue (NYSE: KVUE)
Kenvue is the world’s largest pure-play consumer health company by revenue.
The business boasts a portfolio of iconic brands such as Listerine, Neutrogena, BAND-AID, and Tylenol.
Kenvue reported a respectable set of earnings for 2024 with revenue creeping up 0.1% year on year to US$15.5 billion.
Operating profit (excluding restructuring and impairment charges) rose 3.7% year on year to US$2.6 billion.
Net profit excluding exceptional items increased by 7.8% year on year to US$1.8 billion.
The consumer healthcare business also churned out a positive free cash flow of US$1.3 billion for 2024.
A quarterly dividend of US$0.205 per share was declared on the company’s stock.
For 2025, the business expects organic sales growth of between 2% to 4% as it benefits from structural changes such as a more effective operating model and higher brand investments.
Management intends to launch more innovative products this year amid strengthened retail partnerships.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
