Stocks consistently climbed in April, bucking the sales trend
Squeezing Out Gains Amidst the Sell-off
Financial markets are experiencing a hefty squeeze with losses stacking up daily, fueled by the tariffs imposed by Donald Trump that threaten to plunge the US — and the world — into recession.
Fear not, investors! Some stocks are poised to buck the trend and rise in April next year, even amidst the chaos. These stocks can serve as a safe haven during these tumultuous times. Here are the names to keep an eye on:
- Mastercard - The odds of a win in April: 90%
- The Southern Company - The odds of a win in April: 90%
- Mondelez International - The odds of a win in April: 90%
- Hess - The odds of a win in April: 90%
- American Water Works - The odds of a win in April: 90%
- Encompass Health - The odds of a win in April: 90%
- Kirby - The odds of a win in April: 90%
- Flowers Foods - The odds of a win in April: 90%
- EZCORP - The odds of a win in April are certainly higher than usual.
EZCORP stood out in this list, with an impressive 4.4% rise over the past four days. The pawnshop operator's business model is less dependent on tariff-based economic fluctuations due to its unique nature. The company could even profit from a recession as financial distress grows among some population segments.
The Rocketing Rise of EZCORP
Nicknamed the "recession-proof" stock, EZCORP Inc's (WKN: 882641) performance is likely to be boosted by several factors in April:
- Tax Season: In April, many consumers in the U.S. receive their tax refunds, leading to increased cash flow. This extra cash can lead to increased demand for pawn services, either for repayment of loans or for purchasing assets.
- Growing Revenue and Profit: EZCORP reported impressive financial results for the second quarter of fiscal 2025, with a 7% increase in revenue and a staggering 18% rise in net income compared to the previous year[1][5].
- Record Pawn Loans: The company reported an 11% surge in outstanding pawn loans to $261.8 million, driven by larger loan sizes and strong consumer demand[5].
In a recession, pawnshops like EZCORP could benefit from heightened demand for short-term financial solutions. With operations in both the U.S. and Latin America, EZCORP can manage risks associated with regional economic volatility by leveraging its geographic diversity.
Strengthened by a recent retirement of $103.4 million in convertible notes, EZCORP converted a substantial portion into equity[4]. A smaller debt burden can equip the company for better financial health during a potential recession.
Furthermore, EZCORP bolstered its cash reserves with a $300 million senior notes offering[5]. This war chest can provide the company with flexibility to navigate challenging market conditions and seize growth opportunities as they arise during an economic downturn.
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- In the midst of a sell-off and the looming threat of a recession, the stock market is facing challenging times, yet certain stocks are expected to rise, especially EZCORP Inc.
- EZCORP has shown remarkable resilience, with a significant 4.4% rise over the past four days and is considered a "recession-proof" stock.
- During April, EZCORP is projected to benefit from increased consumer cash flow due to tax refunds, leading to a potential rise in its stock.
- EZCORP's financial standing is strong, as evidenced by its impressive Q2 fiscal 2025 results and a 7% increase in revenue, along with a 18% rise in net income compared to the previous year.
- With a smaller debt burden and substantial cash reserves after recent financial maneuvers, EZCORP is well-equipped to withstand potential triggers of a recession and even profit from them.
