Is the S&P 500 due for a crash next year? That's a big question on the minds of many investors these days. Concerns about bubbles in tech and overall high valuations for the stock market have many investors second-guessing what to do as 2025 draws to a close.
There's no way to know for sure what will happen, but that doesn't mean you can't take steps to protect your portfolio if you're worried about some turmoil next year. For example, by investing in safe blue chip stocks with good fundamentals, you can reduce your overall risk. You may also want to focus on stocks in sectors that might prove to be resilient in a downturn, or at least more so than others.
Three stocks that did well during the last big bear market in 2022 are AbbVie (ABBV 0.76%), Eli Lilly (LLY 2.28%), and Chevron (CVX +3.33%). Here's why they could potentially be good investments to hold in your portfolio if you're worried about the stock market in 2026.
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AbbVie
Back in 2022, when the S&P 500 crashed by more than 19%, shares of AbbVie rose by 19%. The drugmaker was a fairly stable investment that year, with the business steadily growing its top line by 3% while also posting an excellent profit margin of over 20%.
While the healthcare company has been battling to replace revenue for its once top-selling drug Humira due to patent expirations, it has more than made up for that with Skyrizi and Rinvoq, which today are its top-performing immunology drugs. AbbVie's ability to innovate and invest in solid companies has enabled it to continue growing while also diversifying its operations along the way.
Besides immunology, its other key segments include oncology, aesthetics, and neuroscience, and together give the company many different ways to grow and expand its top and bottom lines in the future.
NYSE: ABBV
Key Data Points
AbbVie may not be the flashiest growth stock to own, but it can be a dependable and stable investment to hang on to. It trades at 16 times its estimated future earnings (based on analyst estimates), making it a good value buy. It also yields 3.1%, which is more than twice the S&P 500 average of 1.1%. For investors, this is one of the best healthcare stocks to hang on to for the long haul.
Eli Lilly
Another healthcare stock to make this list is Eli Lilly. Back in 2022, its shares rose by 32%, vastly outperforming the market. The company has been a growth beast thanks to its highly successful GLP-1 drugs: Mounjaro for diabetes and Zepbound for weight loss.
Regulators approved Mounjaro back in 2022, which turned Eli Lilly into a red-hot growth stock in an instant. Today, Mounjaro and Zepbound are blockbusters that generate billions in revenue for the company. The company's total sales over the past four quarters have come in at over $59 billion. Back in 2022, Eli Lilly posted less than $29 billion in revenue.
NYSE: LLY
Key Data Points
Eli Lilly is a growth beast that looks unstoppable. Although its valuation may come under pressure if there' a downturn in 2026, with some terrific growth prospects, this is a stock you can feel comfortable hanging on to for the long haul. It also offers a modest yield of 0.6%.
Chevron
Oil and gas giant Chevron rose 53% in value in 2022, making it the best-performing stock on this list during the last bear market. It's no surprise the stock did so well as 2022 was also the last time that oil prices reached more than $100 per barrel, as the sector proved to be a good investment amid the downturn.
In a downturn, that may not necessarily happen again as demand for oil could decline due to a drop in travel. The Russian invasion of Ukraine began in 2022, which disrupted oil supply, prompting a sudden and brief rise in oil prices. While commodity prices would eventually fall back down, it was still a fairly strong year for the sector.
NYSE: CVX
Key Data Points
Chevron's business remains solid, however, and as a leading player in the oil and gas industry, it can be a reliable investment to buy and hold for the long haul. Oil and gas stocks can also make for effective hedges against inflation, which can boost commodity prices.
The company has posted a profit of at least $15 billion in each of the past four years and it also pays a fairly high dividend, which today yields 4.6%.
