While the S&P 500 has rebounded by 10% since its 2022 lows, it remains futile to predict if the market's correction is over. However, investors can take advantage of these relatively lower valuations and target "recession-proof" businesses poised to thrive regardless of economic conditions.

One way to shore up portfolios in trying times is to focus on historically strong stocks with steady sales growth and high profit margins. Today, we will look at three businesses that bring this stability to the forefront, making them three no-brainer stocks to add in a correction.


Home to what may be one of the most powerful income-creating machines investors have seen this century, Google's parent company, Alphabet (GOOGL 1.08%) (GOOG 1.06%), is built to thrive in nearly any economic climate. Growing 14% year over year for the second quarter, search generated over $40 billion in sales and was the driving force behind Alphabet's net income of $16 billion, giving it a profit margin of 23%.

This growth is even more impressive because it is in stark contrast to Meta Platforms' (Alphabet's largest advertising peer) first-ever decline in advertising revenue during its second-quarter earnings report. This divergence highlights the value proposition that Google's contextual searches offer its customers compared to Meta's focus on display ads.

With these effective ads beloved by brands -- and with Google's 90%-plus share of the global search market -- it isn't surprising that Alphabet's stock has increased 625% in the last decade.

As resilient as Google search's operations have proven to be in a tough advertising market, Alphabet's broader diversification makes it even more interesting to consider when grappling with a market correction.

Consider YouTube and its 2.6 billion monthly active users, YouTube TV's 5 million subscribers, and the 30 billion "shorts" being watched daily. Despite facing formidable comparable figures from the previous year, YouTube increased advertising sales by 5% to over $7 billion in Q2.

Furthermore, Google Cloud grew by 36% over the same time, reaching more than $6 billion in quarterly sales and adding further optionality potential to Alphabet's growth story.

While these segments are young and nowhere near maximum profitability (by design), Alphabet's diversification, resilience in search advertising, and cheap-looking valuation make it an excellent option for combating a downturn.

GOOGL Earnings Yield Chart

GOOGL Earnings Yield data by YCharts.

Thanks to its highest earnings yield since 2015 and a price-to-earnings (P/E) ratio well below its 10-year averages, now may be a great time to buy this well-diversified behemoth.

Idexx Laboratories

Like many of the "pandemic darlings" that thrived during the lockdowns, shares of veterinarian diagnostic specialist Idexx Laboratories (IDXX 0.46%) have dropped in 2022 as it tries to lap challenging comparable figures. 

Down over 30% year to date, Idexx has seen its revenue growth slow to 4% year over year in the second quarter of 2022. This deceleration from its five-year sales growth rate of 12% primarily stems from the fact that 19% of United States households added a dog or cat during the pandemic. This spike created a tidy "boom" for Idexx and its diagnostic products as these companion animals made their first vet visits with their new humans -- and created those difficult comps.

IDXX Revenue (TTM) Chart

IDXX Revenue (TTM) data by YCharts.

Running the gamut of veterinarian products, Idexx offers diagnostic solutions and laboratory and software services through its primary operating segment, companion animal group.

Often considered "recession-proof" thanks to owners' devotion to their furry friends, businesses tied to pet care are worth a close look in down markets. Plus, Idexx's operations bring extra upside to investors in the form of recurring revenue.

After installing its instruments, such as its various blood and urine analyzers, the company generates long-term recurring sales in consumables and laboratory diagnostic services. These recurring sales accounted for 87% of the company's revenue for the companion animal group sector in Q2 2022. 

Due to this sticky sales base, the market's knee-jerk reaction stemming from the company's impossible-to-match comps from a year ago, and a substantial 20% profit margin, Idexx looks like a great business trading at a fair price.


Trading 25% below its five-year average on an adjusted P/E basis, digital content enabler Adobe (ADBE 0.11%) is an exceptional pick to help investors weather stormy market conditions.

ADBE PE Ratio Chart

ADBE PE Ratio data by YCharts.

With its Creative Cloud acting as a "picks and shovels" play to profit from the growth in the broader creator economy, Adobe helps individual artists and massive enterprises alike. Moreover, this positioning gives it an advantage in turbulent market conditions, as the March 2020 sell-off showed.

ADBE Revenue (TTM) Chart

ADBE Revenue (TTM) data by YCharts.

Despite facing unprecedented hurdles, Adobe's revenue growth has remained as solid as ever, growing by 21% annually over the last five years.

This focus on the creator economy seems to help keep Adobe strong in trying times, as people dove headfirst into all types of content created by the solopreneurs and small businesses using the company's products. However, Adobe's enterprise-facing Experience Cloud could be the growth engine that makes it an attractive buy to consider in a time of market upheaval.

Boasting a Who's Who list of clients with massive brands, Adobe's real-time customer data platform generates precious insights across a company's sales and consumer data. Growing sales by 17% year over year in Q2 2022, Adobe's Experience Cloud accounts for 25% of the company's revenue.

Ranked as Gartner's leader in customer experience and relationship management, Adobe looks to tap into what it believes is a $110 billion target addressable market. 

With a 27% profit margin, a strong track record of beating the market (up 1,200% in the last 10 years), and its unique balance between solopreneur and enterprise sales, Adobe is a well-diversified stock to consider in any economic environment.