The market selloff this year has been relentless and shows no signs of slowing anytime soon. with the S&P 500 And Nasdaq indices each down 20% or more over the year and officially in a bear market, many analysts and traders refer to this year’s decline as a “slump”.
Famous investors Michael Burry and Jeremy Grantham have compared this year’s market decline to the dot-com and housing crashes of 2000 and 2008. They predict there will be more pain for investors as central banks around the world they raise interest rates to bring stubbornly high inflation back to their 2% target.
The good news for individual retail investors is that there are several solid stocks in the S&P 500 index that can be bought now at discounted prices and provide predictable future returns.
Here are seven S&P 500 stocks to buy during the current stock market crash.
|BAC||Bank of America||$ 32.56|
Consumer electronics giant apple (NASDAQ:AAPL) remains the largest stock in the S&P 500 index by weight. With a market capitalization of $ 2.5 trillion, Apple is the largest publicly traded company in the United States
Before Covid-19, Apple’s market capitalization exceeded $ 3 trillion, making it the most valuable company in the world. It’s hard to overstate the size and scale of Apple’s influence on the S&P 500 and other indices. A decline in AAPL stock can send the entire market down and push investors to sprint for exits.
Fortunately, Apple remains a stable, profitable, and well-run company under Tim Cook’s leadership. Apple’s major electronic products, such as iPhones, Apple Watch, and MacBook computers, remain a staple around the world and are complemented by a growing number of services such as Apple TV, books and podcasts.
The company’s sustained success is the main reason AAPL shares have only fallen 14% this year, proving to be more resilient than many other tech stocks. Over the past five years, Apple’s stock price has risen by 300%.
There are many reasons why investors remain enthusiastic about the electric vehicle manufacturer Tesla (NASDAQ:TSLA).
Although the Austin, Texas-based company faced challenges this year in the form of regulatory investigations, renewed Covid-19 restrictions in China, and a slowdown in consumer demand, it has also achieved numerous successes. These include the opening of a new manufacturing plant outside Berlin, Germany, and the doubling of vehicle sales in the United States. Tesla remains the global market leader in the electric vehicle space, and all other automakers are rushing to take it.
In terms of company shares, TSLA shares have just split for the second time in as many years. On August 24, Tesla split its shares on a 3-by-1 basis. This followed a 5-by-1 share split in August 2020. The latest split brought the TSLA stock price to just under $. 300 per share.
An 18% drop in the share price also made the stock more accessible for retail investors. Many analysts continue to expect Tesla to remain the global leader in electric vehicle sales for the foreseeable future, as the company will devote 19% of its gross profits to research and development (R&D), allowing it to stay one step ahead of its own. competitors.
United Health (UNH)
Healthcare is not really subject to business cycles. The healthcare sector is most affected by demographics such as an aging population, as well as government regulations, prescription drug approvals, and technological advances. As such, healthcare stocks can help a portfolio overcome the ups and downs of the economy and the market. One of these stocks is UnitedHealth Group (NYSE:UNH), the largest health insurer in the United States and the largest health company in the world with annual sales exceeding $ 285 billion.
One of the 10 largest stocks in the S&P 500 Index, UnitedHealth’s stock is up 3% this year. Over the past 12 months, UNH stock has risen 26% despite the largest decline in equities. The size and resilience of UnitedHealth’s shares are one of the reasons investors should consider owning them to help them weather a stock market crash.
UnitedHealth also continues to grow and expand. The company just got key approval in its efforts to acquire a health technology company Change health care (NASDAQ:CHNG) for 8 billion dollars.
While it hasn’t had a significant breakout in over a year, the credit card giant Visa (NYSE:v) remains a reliable blue chip stock. This year, V shares fell by 14%. But over the past five years, Visa’s stock has risen nearly 80%, and over the past decade, it has gained 660%. The San Francisco-based payment company has proven it can withstand economic and market shocks and emerge stronger on the other side.
The company also has a track record of adapting to technological upheavals, as is the case now with a proliferation of competing financial technology (fintech) companies and payment apps such as to block (NYSE:SQ) And SoFi technologies (NASDAQ:SOFIA).
Despite competitive pressures, Visa remains the market leader among established credit card companies. In 2020, nearly half (49%) of American adults had a Visa card in their wallet, compared with 39% who owned a Mastercard and 15% who had an American Express card. Visa is also a cash cow, having generated $ 16 billion in free cash flow over the past year, giving it the means to withstand any stock market crash.
Big box dealer Costco (NASDAQ:COST) is a reliable bet in any economy. The Seattle-based company managed to retain its 117 million cardholders by renewing their membership this year by offering lower prices for products ranging from gasoline and eyeglasses to meat and vegetables.
As inflation has pushed consumer prices sharply higher, people continue to turn to Costco for deals. This loyalty from its customers has enabled Costco, which reports its earnings on a monthly basis, to report August revenue of $ 17.55 billion, up 11% from the previous year. Sales in the same store as the company increased by 8.7% during the month.
There continues to be speculation that Costco plans to increase its membership dues to help offset the impact of inflation. This speculation grew stronger after competitor Sam’s Club announced that it is increasing its base membership fee to $ 50 from $ 45. However, so far, Costco has kept its two-tier membership dues stable at $ 60 and $ 45, respectively. $ 120. The company also kept its popular $ 1.50 hot dog and soda deal intact, which was acclaimed by customers.
Since the beginning of the year, COST shares have fallen by 13%.
Coca Cola (KO)
People keep drinking Coke (NYSE:KO) even when the stock market is crashing. Some people may drink more Coke when stressed by acrid market conditions. This makes KO shares a constant investment that investors can hold during market cycles.
In fact, Coca-Cola’s stock is so stable that some analysts like a bond. The stock price never rises or falls dramatically, but rises a few millimeters over time, while paying a decent quarterly dividend that yields 2.95%.
This year is a good example of the balanced temperament of KO actions. Since the beginning of the year, the share price has risen slightly by 0.7%. Over the past five years, the stock has gained 32%. After seeing its sales slow in 2020 due to the closure of restaurants and clubs due to Covid-19, Coca-Cola is roaring back. By 2021, the Atlanta-based company’s sales increased 8% as blocks ended worldwide. Coca-Cola expects sales to further increase 12% to 13% this year. Earnings per share are expected to increase from 5% to 6% throughout this year.
Bank of America (BAC)
Higher interest rates should help strengthen your finances Bank of America (NYSE:BAC), the second largest lender in the U.S. Over time, the higher rates charged on its mortgages, lines of credit and other loans will surely be shown in Bank of America’s balance sheet and share price. But in the short term, the Charlotte, North Carolina-based financial institution is grappling with a slowdown in the consumer lending business, reduced revenues from its trading and deal desks, volatile commodity prices and growing fears. of an economic recession.
These problems have helped bring BAC shares down by 27% this year. But rather than worry, intrepid investors should see the withdrawal of BAC shares as a buying opportunity. In addition to the reduced share price, Bank of America also has a low price-to-earnings ratio of 10.36x and pays a dividend that yields 2.7%.
History shows that banking stocks are among the first to recover when the stock market recovers from a slump and Bank of America shareholders should benefit from high interest rates for an extended period.
As of the date of publication, Joel Baglole held long positions in AAPL, V and BAC. The views expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.