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3 no-brainer stocks to buy even during a stock market crash

by WOOWinvest
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3 no-brainer stocks to buy even during a stock market crash

It’s been a scary year for investors S&P 500 Just had its worst first half since 1970. With the market down 21% in the first six months of 2022, investors are certainly being put to the test now. Often, the best course of action is to maintain a long-term focus.

Here are three simple stocks investors should consider, even if the rest of the market takes turn bad. These companies are proven winners and they can strengthen anyone’s portfolio.

1. Home Depot

Trailing 12-month sales of $153 billion lead Home improvement chain The Home Depot (HD 1.75%) is the number one on the list of stocks to consider right now. The company has long been an industry leader, serving the needs of DIY and professional clients by helping them with whatever tools and supplies they need for their projects.

What makes Home Depot a solid investment during turbulent times is its long history of operating successfully. Because the business serves a large real estate industry, its importance to the U.S. economy cannot be overstated. As the biggest financial transaction in most people’s lives, owning a home (and keeping it upgraded) will always be a priority. As home prices continue to rise over time, demand for Home Depot products should be strong.

Shares of Home Depot have fallen 33% so far this year (as of July 1). Slower growth compared to last year’s huge gains is partly to blame. In addition, investors are worried that higher mortgage rates will cool the hot housing market, causing many homeowners to delay renovation projects.I think this potential near-term headwind is definitely something to watch, but P/E ratio (P/E ratio) is only 18 today, and it’s time to buy Home Depot stock.

2. Nike

A leader in the apparel market, nike (NKE -1.00%) is a company with a strong brand associated with a winning mentality. It has long forged deep connections with consumers who constantly crave its premium apparel and footwear. Sales in the last fiscal quarter (ended May 31) totaled $12.2 billion, roughly flat from a year earlier.

Nike’s intense focus on building its digital footprint in recent years has paid off.business matters Over 300 million members In its digital ecosystem, it provides valuable data on marketing and product decisions. As a result of this move, management hopes that in the near future, 50% of Nike’s revenue will come from digital channels.

China is Nike’s fastest-growing market, with pandemic-related restrictions hampering sales growth in the country. Supply chain and inventory challenges, factors that affect many other companies in the global economy, are also taking their toll on Nike. Combine that with the threat of a looming recession and consumers may hold off on casual purchases, and it’s no surprise that Nike’s stock is down 39% this year.

Nike trades at 27 times earnings today, well below the company’s average over the past five years, making the stock an easy investment amid market turmoil.

3. Starbucks

Another business giant is none other than Starbucks (SBUX 3.76%). The sale of caffeinated beverages and foods is an enduring business model. Starbucks, which has 34,630 stores worldwide, posted a record $7.6 billion in second-quarter revenue in the most recent fiscal quarter ended April 3.

Like Nike, Starbucks has a strong digital presence. Its state-of-the-art loyalty program now has 26.7 million active members in the US and is an important channel for driving engagement with customers. Because coffee facilitates repeat buying behavior, Starbucks’ rewards program has been a resounding success, with 54 percent of sales at company-operated stores in the U.S. coming from loyalty members last quarter.

Starbucks has been dealing with different situations in its two largest markets.In the US, sales are strong rebound With the continuous improvement of consumer mobility. In China, however, where Starbucks has 5,654 stores today, the recent COVID-19 lockdowns have hurt business as same-store sales fell 23% last quarter. On the positive side, however, management believes these issues will resolve themselves.

“We remain very optimistic about our future growth in China,” Chief Financial Officer Rachel Ruggeri said on the second-quarter earnings call. The stock is down 32% in 2022 and has a price-to-earnings ratio of 21. Now looks like a good time to buy into the global coffee leader.

These three standouts — Home Depot, Nike, and Starbucks — are blue-chip stocks that investors can rely on to provide a solid foundation for any portfolio. They have a lasting competitive advantage, and thanks to their long and successful history of operating in slow-moving industries, they’re sure to be there for decades or so.

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