NSTAR Is Made for Winter of Discontent

Despite having a product or service that could be labeled a necessity, NSTAR isn't immune to falls in profits and revenue. Some consumers may not be able to pay their bills as the economic crisis worsens. But the reality is that NSTAR's revenue has been growing steadily since 1999 and didn't miss a beat during the 2001 downturn. So there is evidence that the stock is recession-resistant, if not recession-proof.

Net income collapsed in 2001, caused by the impairment stemming from NSTAR's entire investment of $173 million in RCN Corp., whose stock was brutalized in the technology bubble. Apart from this one glitch, the company was solid through the 2001-2002 downturn.