10 Stock Winners During a Market Crash
Market downturns can be intimidating for even the most seasoned investors. When the economy weakens and stock prices tumble, many scramble to protect their portfolios from major losses. However, history shows that not all stocks collapse during a crash — some actually perform surprisingly well. These are companies with resilient business models, steady earnings, and strong consumer demand regardless of economic conditions. In this article, we explore 10 stock winners during a market crash — firms that have consistently shown strength in past recessions and market upheavals, offering investors a sense of stability when uncertainty looms.
Market Pullback and Investor Concerns
Although the market has recently pulled back with a phase of mild consolidation, many investors are still concerned about another round of capital market upheaval. After all, equities have had a multi-year bull run, yet with the Fed showing their heavy hand on cutting stimulus and turning hawkish with rising rates on the horizon, it is always good to know where to hide should market jitters engender a violent market correction.
The Case for Stable Stocks in Volatile Times
Those equity investors who prefer a buy and hold philosophy should consider stocks that have a respectable long-term performance return history and a positive outlook, yet have held up admirably in past episodes of market turmoil. We identified stocks with positive performance during the most recent economic and market crises of 2001 and 2008 in our Top 10 picks for stable stocks that can potentially withstand another downward market jolt. We also took consideration of value, earnings growth, industry diversity and yield.
Top 10 Stable Stocks During Market Upheaval and Recessions
Stocks with positive price change during the two most recent financial downturns: 1/01/08–12/31/08 and 3/01/01–11/01/01.
Why These Stocks Stand Out
Insofar as past performance doesn’t dictate what the future holds for these stocks, having a fat-tailed negative market event as a stress test in two separate occasions does offer insight. Certain industries are often viewed as safe havens during market dislocation, such as household products, staple foods, and discount stores. Some institutional and retail investors remain loyal to these stocks as long-term holdings, recognizing them as stable earners in both good and bad times.
Characteristics of the Top 10 Stocks
It is no surprise that almost all of the stocks have respectable yields with an average of 1.8%. These are not high-flyers in ecommerce, technology, biotech, or social media, but rather tried-and-true businesses delivering consistent results for decades. They attract loyalty from both consumers and shareholders.
Monitoring and Adjusting Portfolio Holdings
Of course, not all these stocks are created equal and often experience unique challenges. For example, Wal-Mart (WMT) recently disappointed with same-store sales declining 0.3%, and Panera Bread’s (PNRA) earnings recently fell short of expectations. While industry and stock diversity help mitigate such hiccups, investors should still monitor performance and adjust allocations as needed.
Value and Growth Outlook
These stocks are not driven by fast-moving money like algorithmic trading or activist hedge funds. The one-year forward P/E is about 16 — the median for the S&P 500 over the past 15 years — with average analyst earnings growth of +11% for next year. While they lack extraordinary growth, their steady operations and global exposure make them reliable performers.
Performance During Market Crashes
Where it truly matters, these 10 stocks collectively delivered strong results during severe market stress. During 3/01/01–11/01/01, they returned roughly +35%, and in 1/01/08–12/31/08, about +14%. These returns demonstrate resilience across two major downturns. Over a 10-year horizon, they have shown average cumulative annual returns of around +15%.
Other Stable Stocks to Consider
As a secondary group, three additional stocks also showed resilience during market turbulence, with a solid long-term profile, decent earnings growth, and fair valuation.
Other Stable Stocks – Market Upheaval & Recessions
Stocks performed ‘relatively well’ over the two most recent financial downturns: 5/1/08–5/1/09 and 1/1/01–12/31/01.
Final Thoughts: Diversify for Stability
In closing, it is prudent to acknowledge that 13 stocks would be considered a highly concentrated portfolio. Investors should ideally hold at least 20 stocks — preferably more — to maintain proper diversification and stability across different market conditions.