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2 Stocks to Own If You’re Worried About a Recession

Investing in a company like Shopify Inc (TSX:SHOP)(NYSE:SHOP) has been a great way for investors to have grown their portfolios significantly over time.

However, with the recent decline of the stock, it’s a reminder that these types of highly valued growth stocks may not be the safest investments to hold, especially as economic conditions worsen and investors look for more value-oriented stocks to own.

One of the reasons is that Shopify’s high rate of growth may take a hit during a recession, which may see a lack of new merchants and less spending.

The risk of a correction for Shopify could be significant, which is why investors may want to consider selling before a recession.

With Shopify being unprofitable and commanding a large premium from investors, it could be at a big risk to face a significant correction. In contrast to Shopify, however, the two stocks listed below could be much safer options to hold in the event of a recession:

Waste Connections Inc (TSX:WCN)(NYSE:WCN) is a great example of a stock that is much safer to own over the long term. With its business not being dependent on a strong economy and consumers buying online, Waste Connections will see a lot more stability than a stock like Shopify will.

There’s always a need for people to have their garbage taken out, which means a lot of recurring revenue will be generated by Waste Connections.

The company has consistently posted a profit in recent years, and there’s still more opportunity for Waste Connections to grow in size. Waste management is all about reaching as many consumers as possible.

Growing geographically has been a key way that the company has been able to increase its sales, and how it can continue to do so.

While Waste Management may not be the exciting tech stock that Shopify is, it too has been generating strong growth over the years and could prove to be a solid long-term buy.

Park Lawn Corporation (TSX:PLC) is another company that offers essential services that don’t wait for the economy to recover. As the population continues to increase, the need for deathcare services like the ones Park Lawn offers will only rise over time.

Key to the company’s success has been its growth, with Park Lawn stating on its website that it has “become the fastest-growing player in the industry” as a result of various acquisitions and partnerships that the company has undertaken over the years.

With operations in both Canada and the U.S., there could still be many opportunities for the company to continue to grow.

Although the nature of what the company does ensures it won’t get the fanfare that a Shopify does, that doesn’t mean that Park Lawn hasn’t been a good investment.

In five years, its share price has more than doubled amid the company’s rapid growth, increased revenues and profits. With  a modest dividend of around 1.7%, investors could do very well by holding shares of Park Lawn.

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Fool contributor David Jagielski has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and Shopify. Shopify is a recommendation of Stock Advisor Canada.

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