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A stock market crash isn’t always a bad thing. While people nearing retirement should approach the risk of acrashwith more caution, itallows younger investorsto buy fundamentally solid companies at more reasonable valuations. We’ll look at some of the top stocks to buy for a market crash today.
Investors who capitalize on market uncertainty and load up on top-tier companies can be in a good position after a few years. However, it’simportantto know which corporations to consider before a correction or a crash happens. That way, you aren’t rushing to make decisions and can craft a plan leading up to market turbulence. These are some of the top stocks to buy for a market crash today.
Alphabet (GOOG, GOOGL)
Alphabet(NASDAQ:GOOG, NASDAQ:GOOGL) is a clear leader in the online advertising and cloud computing industries.The corporation’sQ1 2024results further reflectedthe company’svast market share in those industries. Revenue increased by 15%year-over-yearwhile net income jumped by 57%year-over-year.
The high net income growth comes as the company implements more cost-cutting measures while accelerating its top-line growth.Continuedgrowth in the cloud and artificial intelligence initiatives can lead to more growthmoving forward.Google Cloud in particular has seen rising profits. The segment generated $191 million in Q1 2023. Operating income jumped to $900 million in Q1 2024.
Revenue also grew at ahigherpace for Google Cloud. Net sales came in at $9.57 billion compared to $7.45 billion in the same period last year. That’s a 28.4% year-over-year increase which outpaces Alphabet’s overall revenue growth. The stock has a reasonable 26 P/E ratio which should continue to shrink as the company expands its profit margins.
Meta Platforms (META)
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Alphabet isn’t the only advertising giant up for grabs.Meta Platforms(NASDAQ:META) has alsobeen fulfillingits end of the bargain for investors. The stock has gained 25% year-to-date and is up by an impressive 78% over the past year.It’s also another one of the top stocks to buy for a market crash today.
The stock recently plunged afterQ1 2024 earningsand is in correction territory. However, the earnings report was solid despite the market’s reaction. Revenue increased by 27% year-over-year while net income surged by 117% year-over-year.
The company’s 7% year-over-year daily active user growth across all platforms was also solid. Meta Platforms now has 3.24 billion daily active users. The firm repurchased $14.64 billion worth of shares while distributing $1.27 billion to investors as dividends. Meta Platforms has achieved this level of success while trimming its headcount by 10% year-over-year.
Meta Platforms is making strides in artificial intelligence, but advertising is undoubtedly themainrevenue driver.Advertising accounted for $35.6 billion of the company’s $36.5 billion in total revenue. Only2.2% of the company’s revenue did not come from advertising.If Meta Platforms finds another robust income stream like Alphabet did with Google Cloud, the stock can continue to soar.
Marriott International (MAR)
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Marriott International(NASDAQ:MAR) has built one of the top hotel chains in the industry. The firm hasnearly 8,800 propertiesin 139 countries and territories. Marriott International and its investors have benefitted from the travel boom. Shares are up by 69% over the past five years and trades at a 23.5 P/E ratio.
The momentum continued inQ4 2023as the company reported $23.7 billion in revenue. It wasa 14% year-over-year increase. Net income grew by 31% year-over-year to reach $3.1 billion. The firm expanded its profit margins andhasraised itsquarterly dividend payoutabove pre-pandemic levels.Investors received $0.52 per share in 2023, and the companyis expectedto announce a dividend hike in May.
The hotel chain can also benefit asAirbnb(NASDAQ:ABNB) gets more expensive. Airbnb is still a competitor in the hotel industry, but its main appeal in the early stages was more affordable pricing.Now,there isn’t much of a gap between Airbnb and hotel prices, and hotels offer more amenities.Airbnb CEO Brian Chesky has stated his desire to make Airbnbfeel affordable again. As Airbnb gets more expensive, consumers may flockoverto hotels more often.
American Express (AXP)
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American Express(NYSE:AXP) has been attracting younger cardholders while raising its profit margins. The fintech firm trades at 19.5x earnings and has outperformed the market. Shares are up by 26% year-to-date and have soared by 98% over the past five years. It’s another one of the top stocks to buy for a market crash today.
Consumer preferences change, and someproducts and services may gain more demand while others may go out of style.However, most individuals will always use credit or debit cards for their purchases. These cards have become a core foundation of economic activity, and American Express hasbeen benefittingfrom this multi-decade trend.
The fintech firm reported solid financials in thefirst quarter of 2024.Revenue increased by 11%year-over-yearwhile net income jumped by 34%year-over-year.American Express has been expanding its profit margins and wrapped up Q1 2024 with a 16.9% net profit margin. The company set growth objectives beyond 2026 that suggest revenue and profit margins will continue to grow.
Intuit (INTU)
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Intuit(NASDAQ:INTU) offers financial software including industry-leading products like Quickbooks and Turbotax.The stock isoff to a slow startwitha 5% year-to-date gain.However, it’s also up by 43% over the past year and has soared by 154% over the past five years.
Analysts believe the stock can continue to rally. The average price target suggests a12% upsidefrom current levels.Intuit is rated as a “Strong Buy” among 21 analysts and the highest price target is $775 per share. That price targetimplies a 22.4% gain.
The company had another successful quarter and reported 11% year-over-year revenue growth in Q2 FY24. Non-GAAP earnings per share grew by 20% year-over-year. Intuit anticipates full-year revenue growth to range from 11% to 12%. GAAP diluted EPS growthis expectedto range from 11% to 15%.Intuit generates double-digit net profit margins, and guidance suggeststhatit* profit margins will continueto grow.
Badger Meter (BMI)
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Badger Meter(NYSE:BMI) manufactures water metering technology and flow measurement solutions.The company’s technology isuseful formeasuringthe quality of water and improving operational efficiencies of utility companies.
Badger Meter is a mid-cap stock with a $5.5 billion market cap. It also trades at a 54 P/E ratio and offers a 0.58% yield. The company has an impressive dividend growth rate to make up for its low yield.The companyhiked its dividend from $0.225 per share to $0.27 per sharein 2023. That’sa 20% year-over-year increase, andBadger Meter is due for an announced dividend hike in August.
The company posted solidQ1 2024 financialsthat werehighlighted by a 23% year-over-year increase in total sales. While total sales came in at $196.3 million diluted EPS soared by 50% year-over-year to reach $0.99 per share.Badger Meter generated record quarterly revenue, operating profit, and EPS results.
Chipotle (CMG)
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Chipotle(NYSE:CMG) has beentrouncingthe stock market in recent years. Shares are upby41% year-to-date and have soaredby346% over the past five years. Thefast foodrestaurant chain delivers healthier food options which has made consumers willing to pay higher prices.
The companyhas raised menu prices four timesin the past two years. Chipotle attributed the price hikes to the state of the economy, but that hasn’t stopped the fast food giant from reportingstrongfinancials.
Revenue jumped by 14.1% year-over-year inQ1 2024. Net income grewat a faster clipand was up by 23.2% year-over-year. That growth rate helped the company reach $359.3 million in net earnings for the quarter. Chipotle still plans to open 285-315 restaurants in 2024. More than 80% of these restaurants will have a Chipotlane. These additions have been a boon for the company, as digital sales represented 36.5% of total food and beverage revenue.
On thisdate of publication, Marc Guberti held a long position in GOOG. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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