We’re adding three more stocks to our All-Weather Stock List . These three are odd companies that dominate niche industries, allowing their revenues to steadily grow with no correlation to the overall economy. CNBC Pro created the All-Weather list back in late February after seeing some worrying signs in the market. We’ll be adding stocks to the list over time with a goal of finding durable companies that allow investors to win in any type of economy. We’ll be creating more lists this year. CNBC Pro is building them using analysis, screening techniques and research used by the pros. You can view updates on our stock lists here . New addition: A play on legal fees Our first addition is Burford Capital (BUR) , a company which practices litigation finance. Companies and law firms use Burford to “pay fees and expenses, accelerate expected claims, judgments and awards,” according to the company’s website. It was brought to our attention by Deutsche Bank financial industry analyst Mark DeVries, who last week named it one of three stocks to buy for an uncertain macroeconomic environment. “Given Burford’s business of financing commercial litigation, which occurs throughout the business cycle, their core demand drivers are inherently uncorrelated to the performance of broader markets,” wrote DeVries. BUR YTD mountain Burford Capital, YTD Plus, the analyst believes the stock will do more than just weather any economic downturn. He said there’s still a backlog of legal cases delayed from the pandemic that should “provide a revenue tailwind through at least 2025.” He has an $18 price target on the stock. One note of caution from DeVries. The share price could be hurt if an appeal by Argentina in a case versus investors represented by Burford is successful. The case involves the nationalization of energy company YPF SA. Next addition: Death services Just like our addition of Waste Management was based on trash hauling being recession resistant, we have another new member from an industry Wall Street has long believed to have the ultimate durability: death. Service Corporation International (SCI) is North America’s biggest provider of death care products and services. It operated more than 1,400 funeral homes and nearly 500 cemeteries as of the end of 2023. The stock has remarkably consistent returns. Over the last 15 years, it has only three down years and its worst performance of those three was a 2.6% decline during 2022. Considering that it pays a 1.6% dividend, then investors pretty much never lost money in 15 years in this name. Its bottom line is consistent with net income at the company growing at a 7% annual rate the past five years, according to FactSet. SCI 5Y mountain Service Corp. International, 5 years Because of the nature of its business, there aren’t may analysts who cover the stock. But Wall Street is generally bullish and believes Service Corp. will see revenue accelerate as the baby boomer population ages. Analysts, on average, see 11% upside for the stock the next 12 months. Next addition: Market data As market turmoil continues and the slowing economy forces companies to restructure debt, demand for our next company’s services will likely increase. That next addition is S & P Global (SPGI) , a financial data, analytics and ratings company. Goldman Sachs just highlighted S & P Global to clients as part of its hunt for defensive growth stocks trading at cheap prices. The investment bank looked for companies that have consistent sales growth, low share price volatility and cheap multiples based on their history, and S & P Global fit the bill. “Reflecting benefits of diversification, SPGI’s non-Ratings businesses are collectively tracking to grow high-single-digits this year, driven by secular tailwinds, market share gains and wallet penetration,” Goldman said in a recent report. “The company expects billed debt issuance volumes and Ratings revenue to sustain positive growth in 2025 driven by ongoing debt refinancing needs and improving M & A volumes.” The stock had only two down years in the past 15 and pays a small dividend to boot. UBS recently called it one of the best large, quality stocks in the U.S. market. Full All-Weather List So here’s the full All-Weather List with the new entrants below. You can check here for the latest CNBC Pro stock lists. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
