Recession fears on your mind? 2 TSX blue-chip stocks to buy

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Recession fears on your mind? 2 TSX blue-chip stocks to buy

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 Recession fears on your mind? 2 TSX blue-chip stocks to buy
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Highlights:

  • People are fearing recession as inflation is rising.
  • Amid the rising consumer prices, central banks are hiking the interest rates.
  • It is expected that the central bank in Canada might raise the interest rates by 0.75 per cent.

According to a Statistics Canada report, the Canadian inflation rate in May surged to its highest level in almost four decades as petrol prices increased significantly.

The inflation rate was 7.7 per cent, up from 6.8 per cent in April. Notably, this is the largest increase since 1983, when the inflation rate had gone up to 8.2 per cent.

Amid the rising consumer prices, central banks are hiking the interest rates. It is expected that the central bank in Canada might soon raise the interest rates by 0.75 per cent.

The markets continue to remain volatile due to several economic pressures; people fear that they might have to face a recession.

Some analysts are of the mixed opinion as some believe that we won't see an economic downturn, and some think that we might go through a period of economic uncertainty. If you feel that the world might face a recession, here are two TSX-listed stocks that might be worth exploring for your portfolio:

Alimentation Couche-Tard Inc. (TSX:ATD)

The company operates convenience stores worldwide, and as it caters to a wide variety of needs of the customers, we have selected the stock of Alimentation Couche-Tard in this article.

People buy stuff from convenience stores even during times of recession. As the company has a global presence, it is expected to continue doing business without any massive impact from the economic crisis.

On Friday, the ATD stock had surged by 3.4 per cent and closed at C$ 55.17 per share. Since the start of 2022, the ATD stock gave returns of 4.1 per cent amid market volatility.


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Enbridge Inc. (TSX:ENB)

It is an oil company and might be surprised to find it in the list of 'recession stocks'. However, it is worth mentioning here that Enbridge is not a typical oil company but specializes in providing natural gas utilities.

After witnessing consecutive sell-offs, the ENB stock recorded positive gains slightly after the increase in volume, as per Refinitiv data. On Friday, the ENB stock price surged by around 1.7 per cent, and its volume was 3.93 million shares.

Enbridge's distributable cash flow was C$ 3.1 billion in Q1 2022 compared to C$ 2.8 billion in Q1 2021.

Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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