Top 3 Undervalued Stocks to Consider During a Recession

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Core News Facts

In a challenging economic environment, three consumer stocks—Netflix, Walmart, and Chewy—are being highlighted as potential outperformers. Netflix (NASDAQ: NFLX) reported a 13% revenue increase last quarter and is adapting its offerings with ad-supported tiers, while its stock has dropped nearly 40% in the past year, currently valued at a forward P/E ratio of about 21 based on 2026 estimates.

Walmart (NASDAQ: WMT) has historically gained market share during recessions and is currently trading about 15% below its highs. It benefits from non-discretionary sales and a growing customer base attracted by its Walmart+ membership.

Chewy (NYSE: CHWY) maintains a recession-resistant business model with 85% of its sales coming from autoship customers. The company is expanding its margins through automation and has a price-to-earnings ratio under 11.5, positioning it as a bargain amidst continuous sales growth.

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