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10 Top Stocks to Buy This Month if You're Worried About Another Market Crash

By Rachel Warren - Jul 26, 2021 at 12:06PM
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10 Top Stocks to Buy This Month if You're Worried About Another Market Crash

Another market crash may be very close

Stocks have been all over the place lately, and investors are growing increasingly concerned about another market crash as coronavirus cases soar worldwide and inflation continues to ramp up. While it’s impossible to predict exactly when the next crash will occur, it’s always a good time to strengthen your portfolio with quality long-term investments that can deliver returns amid a myriad of market trends.

To that end, let’s take a look at 10 stocks to consider adding to your buy basket if you’re worried about another market crash.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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1. Facebook

FAANG stock Facebook (NASDAQ: FB) continues to draw a steady stream of investors and consumers in both bull and bear markets, which has translated to continuous share price and balance sheet growth throughout the pandemic.

Shares of Facebook are trading about 60% higher than just one year ago. In the company’s most recent quarterly statement, it reported a 48% spike in revenue and a 94% surge in net income on a year-over-year basis. Management also said that Facebook’s monthly active users (as of the end of March) were up 10% year over year, while daily active users in March rose 8% from the year-ago period.

ALSO READ: Worried About a Stock Market Crash? 4 Ways to Be Ready

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Pharmacist handles prescription.

2. Pfizer

Pfizer (NYSE: PFE) remains a leader in the coronavirus vaccine market, thanks to the vaccine it developed with its German partner, BioNTech. The vaccine, now marketed as Comirnaty, is on track to generate $26 billion in revenue in the full-year 2021 alone.

Pfizer continues to ink lucrative vaccine deals right and left as nations around the world are clamoring for additional doses. These deals will bring in billions of dollars more in additional revenue for the company over the next few years alone.

And as a leading pharmaceutical company, Pfizer also has plenty of other sources of revenue it can depend on in the form of its robust portfolio of top-selling medicines that include names like Eliquis (a blood thinner) and Ibrance (a targeted cancer therapy). Pfizer’s total first-quarter revenue represented a 45% increase from the year-ago period.

The company’s dividend is another reason for investors to love this stock. With a current yield of 3.7%, it far surpasses that of the average stock trading on the S&P 500. Pfizer also regularly hikes its dividend payout, so investors can rely on the company for sustainable long-term portfolio growth.

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Person using laptop in office.

3. Alphabet

Google’s parent company, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), has continued to deliver impressive financial results throughout the pandemic. And it’s no wonder, with its bevy of products, services, and brands that include everything from the world’s No. 1 search engine to YouTube (the largest video platform in the world) to Google Cloud.

In the first quarter of 2021, Alphabet’s revenue increased 34% year over year. Meanwhile, shares of the tech stock are trading about 80% higher than just 12 months ago.

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4. Shopify

The global e-commerce market is expanding at an incredibly impressive pace, and Shopify (NYSE: SHOP) is one of the top stocks to buy to capitalize on this industry’s rapidly accelerating growth. Over the past year alone, shares of Shopify have soared by a premium of nearly 80%.

In the company’s first-quarter report, management said that Shopify’s total revenue jumped 110% year over year, on the heels of a 114% surge in gross merchandise volume on its platform during the three-month window.

ALSO READ: Worried a Stock Market Crash Is Coming? 3 No-Brainer Dividend Stocks You Don't Need to Wait to Buy

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Masked person checking out at store.

5. Walmart

Multinational retail corporation Walmart (NYSE: WMT) sells products that are in demand on a year-round basis, from groceries to household supplies to health and beauty items. This enabled the company to capitalize on its status as an essential retailer in the earlier days of the pandemic and continue generating strong revenue growth throughout the period following.

In the company’s fiscal 2021 (ended Jan. 31), it reported an approximately 7% boost in its total revenue and a nearly 80% surge in U.S. e-commerce sales alone. And in the first quarter of Walmart’s fiscal year 2022 (ended April 30), it reported total revenue and U.S. e-commerce sales grew by respective rates of 3% and 37% from the year-ago period.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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Person holding and looking at laundry detergent while shopping in supermarket.

6. Procter & Gamble

Another company that has benefited from strong noncyclical demand for its products during the pandemic is Procter & Gamble (NYSE: PG). The company has been in business since 1837, and it has also achieved the title of Dividend King, reserved only for stocks with a track record of consecutively increasing their dividends for 50 years or longer. Procter & Gamble has boosted its dividend every year for more than six decades, and its dividend currently yields about 2.5% for investors.

In its most recent quarterly report, the company reported that its net sales grew 5% on a year-over-year basis.

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Child peers over counter to look at cookie jar.

7. Hormel

Hormel Foods (NYSE: HRL) is another Dividend King for long-term investors to consider buying before the next market crash. The stock yields 2.1% at the time of this writing. And Hormel has increased its dividend every year for a whopping 55 years in a row.

The company sells a broad assortment of food products and owns well-known brands like Skippy and Applegate. In Hormel Foods’ second-quarter report, it reported that it had generated record net sales growth of 8% year over year.

ALSO READ: Forget a Market Crash, Start Buying These 3 Stocks Now

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8. Starbucks

Although Starbucks (NASDAQ: SBUX) had to contend with lengthy suspensions of dine-in operations due to the pandemic, the company’s recent financial results paint a picture of strong recovery from these headwinds. Starbucks has also continued to pay out a healthy dividend (which it regularly increases) throughout the pandemic. The company’s dividend yields about 1.5%.

In Starbucks’ financial release for the second quarter of fiscal 2021 (ended March 28), the company reported that global comparable-store sales rose 15% and consolidated net revenue popped 11% year over year.

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Scientist holding test tube with cannabis.

9. Innovative Industrial Properties

Some marijuana stocks have a particularly high-risk, high-reward profile, but conservative stock buyers can still find plenty of lower-risk investment opportunities in this sector. Innovative Industrial Properties (NYSE: IIPR) is one of them. The real estate investment trust (REIT) owns a broad collection of properties that it leases to licensed medical marijuana growers.

Business has boomed during the pandemic, and the company has reported astounding earnings growth. In the first quarter of 2021, Innovative Industrial Properties reported top-line growth of 103% and a robust 122% increase to its bottom line from the year-ago period.

The company also pays an attractive dividend: It yields approximately 2.6% at the time of this writing.

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10. Etsy

Another top stock to invest in if you’re interested in cashing in on the exponential rise of e-commerce is Etsy (NASDAQ: ETSY). In the first quarter of this year, the company reported respective year-over-year increases to its revenue and net income of 142% and 1,048%.

Etsy is also continuing to expand its footprint within the world of online shopping, most recently with the acquisitions of clothing resale marketplace Depop and Elo7, one of the top e-commerce platforms in Brazil.

Unsurprisingly, shares of Etsy are trading more than 100% higher than just one year ago.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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Person sitting in office while looking at binder displaying graphs.

A market crash shouldn't keep you from investing

Market crashes can be scary at first glance, but long-term investors needn’t fear these periods of downturn. For one thing, market crashes are often a great opportunity to grab more of your favorite stocks at considerably cheaper valuations. Another point for investors to remember is that market crashes end, and they are typically followed by an extended period of robust rebound.

The best way to survive a market crash is to overcome the urge to panic sell your holdings and, if you have the cash to invest, continue to pump it into more high-quality companies that can generate years of portfolio growth.

Rachel Warren has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Etsy, Facebook, Innovative Industrial Properties, Shopify, and Starbucks. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, short January 2023 $1,160 calls on Shopify, and short July 2021 $120 calls on Starbucks. The Motley Fool has a disclosure policy.

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