FedEx Corporation (FDX), Macy’s, Inc. (M): Best Stocks for a Possible Recession

Pawn Shops

What might seem like dark days for a company can actually be the best time to invest. The pawn shop operator EZCORP Inc (NASDAQ:EZPW) closed more than 100 stores during the quarter ended June 30, costing the company over $21 million. Plunging gold prices caused gold scrapping revenue to cost EZCorp $10 million in net income and $0.18 per share. This resulted in a total net loss of $6 million for the quarter, or $0.11 per share.

However, total revenue was up 13% excluding gold scrapping revenues. EZCORP Inc (NASDAQ:EZPW)’s earning assets — such as pawn loans, consumer loans and inventory on the balance sheet — increased 21% to $416 million. The company has also continued expansion in Canada, Latin America and the United Kingdom.

While EZCorp closing price of $18.52 on August 1 was 17.76% lower than a year before,and headlines focused on the company’s third quarter loss, InvestorPlace Contributor Lawrence Meyers still calls EZCorp his “favorite value stock in the entire world” and wrote that he believes “it’s trading at 50% of what it’s worth.” If the U.S. economy indeed enters a turbulent period after September, it could be EZCORP Inc (NASDAQ:EZPW) — and its shareholders — that very likely stand to benefit.

Conclusion

Stocks were down after the Labor Department released a disappointing jobs report on August 2. The 162,000 jobs added in July fell short of expectations and further demonstrated signs of sluggish economic growth, but these three stocks should give any investor sufficient reason for optimism.

Mandy Seay has no position in any stocks mentioned. The Motley Fool recommends FedEx.

The article The Three Best Stocks for a Possible Recession originally appeared on Fool.com.

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