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Direct selling stocks, which are also known as multilevel marketing stocks and network marketing stocks, can be considered to be recession- proof, because people turn to ways of generating extra income when times get tough. Direct selling companies operate by recruiting salespeople to sell their products. The salespeople receive additional commissions from the sales of people recruited in their downline.

Here is a list of some of the major publicly traded direct selling stocks:

  • Tupperware Brands Corporation (NYSE:TUP) is an Orlando, Florida-based company which markets kitchen products, cosmetics and personal care products. Its P/E is 19, and it has a PEG of 0.82. Its offers a yield of 2.4%.

  • Herbalife Ltd. (NYSE:HLF) is a Los Angeles-based company which markets weight management, nutritional supplement, and personal care products in over 60 countries around the world, through its sales reps. Its price earnings ratio is 18, its PEG ratio is 1.18, and it pays a yield of 1.7%.

  • Avon Products Inc. (NYSE:AVP) is a New York-based company which markets cosmetics, fragrances, skin care, and toiletry products, along with various other consumer products. It has a P/E of 31, a PEG of 1.51, and the company pays a yield of 2.1%.

  • Pre-Paid Legal Services Inc. (NYSE:PPD) is an Oklahoma company which markets legal expense plan memberships throughout the United States and Canada. Its P/E is 12.

  • Nu Skin Enterprises Inc. (NYSE:NUS) is a Provo, Utah-based company which markets personal care products and nutritional supplements. It has a P/E of 27, a PEG of 1.23, and a yield of 2.4%.

  • USANA Health Sciences Inc. (NYSE:USNA) is a Salt Lake City-based company which markets vitamins, minerals, skin products and personal care products. It has a P/E of 11, and a PEG of 0.55.

  • Mannatech Inc. (NASDAQ:MTEX) is a Texas-based company which markets nutritional supplements, skin care products, and weight-management products. The company's P/E is 12, and it has a fairly high yield of 4.2%.

  • Nature's Sunshine Products Inc. (NASDAQ:NATR), which trades on the Pink Sheets, is a distributor of nutritional, herbal and personal care products. The stock has a P/E of 8.

  • Disclosure: The author does not own any of the above.

    Source: Eight Multilevel Marketing Stocks