The Quality Discount: 5 Recession-Resistant Stocks the Market Is Mispricing

With private credit cracking and inflation sticky, here are five names with pricing power, strong FCF, and valuations that haven't caught up to their quality.

Morgan Stanley is forecasting private credit default rates reaching 8% — GFC-peak territory — at the same moment core US inflation is running at 3.9% with Middle East supply disruptions keeping it sticky. That combination is unusual enough to pay attention to. When credit stress and sticky inflation arrive together, the market tends to reprice risk unev…