Some Companies that have Done Well in the Recession

Forbes Magazine recently had an article on some "main street" companies that are holding up well in the recession:

1. Campbell Soup Company - In trying times, people turn to comfort foods like soup. Campbell's was the only S&P stock to escape the Sept. 29 market selloff of 778 points.

Its stock is up 26% since January. A few days before the selloff, the company announced a 14% dividend increase - its fifth increase in 5 years.

In the fiscal year that ended on August 3, Campbell had an 8% increase in sales. They forecast 4% sales and earning growth for fiscal 2009.


2. Walgreens - This drug store chain's gross margins have been stable at 28%, even during the last recession.


3. Pediatrix Medical Group - Even in recessions, 1 in 8 babies end up in the neo-natal intensive care unit. This company employees 12,000 physicians who help small hospitals setup and staff these units. They benefit from the trend of older parenting, because women who have kids at an older age have more chances of complicated pregnancies and premature babies.


4. AAR Corp - They are an aerospace outsourcing firm that services jets for airlines and defense. Government contracts accout for 40% of their business, and sales should be up 30%. They are helped by airlines putting off purchases of new planes.


5. Microsoft - They have so much cash ($23.7 billion) that they can buy their way into other markets.


6. Brown-Foreman - Their liquor sales hold up in recessions. They are currently shifting their marketing for Jack Daniels from restaurants/bars to retail ads and in-store promotions, because people are eating at home instead of restaurants. They have lots of cash and untapped credit lines.