When the economy turns for the worse not all companies tighten their belts and hope to survive through it. Some thrive.

But before you go out and invest in these companies, just remember that just because a certain sector or company has done well in previous downturns does not mean that it will be that way this time. Nor do we know what this downturn will be like or even how long it will last. Not all companies are fundamentally sound and not all stock prices are good deals.

This is not investment advice but meant to educate.

Now that I got that out of the way, let’s dig into a list of sectors and companies that typically do well in downturns.

Discount retailersWhen there is less money in the marketplace, people are much more likely to pinch pennies. Companies like Wal-mart and Dollar Tree tend to be the recipients of this business. These companies not only provide good prices but generally stick to the staples that people are going to need in good times and bad.

DIY and repairsWhen money gets tight we are much more likely to try to fix that pesky leak ourselves instead of calling a pro. Because of this, stores and companies that sell tools and supplies tend to do well as well. And since people are more likely to repair their cars instead of buying a new one in a recession, stores like Autozone outperform.

This time aroundOne thing that we have to keep in mind is that every downturn is different. Because this one was accompanied by Covid-19, a different set of products and services are needed to serve this new environment. Zoom, for example, the video conferencing company, has seen incredible growth in the last few months as the rest of the stock market has declined. Taking advantage of the new found need to make virtual meetings possible. Online retailers and shopping apps have also done incredibly well during this time.

ConclusionIt is easy to look back to see what companies and sectors have done well in the past. That being said, knowing what the future will hold is a much different story. There are many educated guesses out there but they are still just guesses. This unprecedented environment is new for all of us so only time will tell which companies will come out on top.

Dallen Haws is a personal finance and business enthusiast, ASU grad (Fear the Fork!), co-founder and financial planner at Haws Financial Planning.