9 Stocks to Buy If the Coronavirus Causes Another Stock Market Crash

The stock market was taken somewhat by surprise in March when the COVID-19 outbreak was declared a pandemic.

Unsure how the fallout would affect business and the economy, investors bailed on just about everything. As consumers began to navigate the changed landscape, however, clear retail stock winners began to emerge.

A second wave of coronavirus causing the country to lock down again could send the stock market reeling once more. But having been through the turmoil once, investors should be ready to pounce on the following nine stocks if the market sends their shares lower.

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.

Not even Amazon.com (NASDAQ: AMZN) was immune to the initial impact of the outbreak, as its stock tumbled as much as 15% before people realized stay-at-home orders meant they would need to turn to online retailers for the things they needed.

A second crisis might not see Amazon impacted the same way, but supply chains were disrupted in the first go-around and new shutdowns could do the same or worse, meaning even the e-commerce giant could be affected again. Taking responsibility for delivery of most of its own orders ought to minimize any disruptions that might occur, however.

Its shares have nearly doubled from those March lows, but even if the stock doesn't drop, Amazon should still be on your buy list. It was such a critical outlet in helping consumers maneuver the first wave of the pandemic that it would undoubtedly fill that role once more.

ALSO READ: Is Amazon Stock Recession-Proof?

In that same vein, Walmart (NYSE: WMT) needs to be on a list of stocks to buy should the market go into a tizzy again.

Because it was considered an essential business, it was given a competitive advantage over specialty retailers that were forbidden from opening their doors. While most of Walmart's sales came from groceries, it was also able to sell merchandise others could not, such as apparel, sporting goods, and more.

A fall surge of COVID-19 cases would also come during what is shaping up to be an early start to the Christmas selling season. Any resultant shutdowns would once again give the retail giant supremacy over many of its rivals. A new outbreak might put a damper on holiday cheer, but Walmart would be one of the go-to outlets consumers would flock to anyway.

Target (NYSE: TGT) would fill that need, too. As a mass merchandiser deemed an essential business, it was also able to fill the void created by specialty stores closing down in the first wave.

Throughout the pandemic, Target reported, all five of its core merchandise categories recorded strong market-share gains. In addition, the retailer noted in its second-quarter earnings report that it generated approximately $5 billion worth of market-share expansion over the first six months of the year.

That would set it up well for a repeat performance if a second wave of coronavirus causes a similar economic downturn, as the investments the retailer made in its digital platform have paid off well.

Target's stock isn't cheap right now, but nor is it especially expensive. Therefore, a market crash might just make its stock particularly attractive, even if its ability to take share away from rivals hadn't.

What quickly became obvious to everyone -- the general public and investors alike -- was that widespread shutdowns meant consumers needed to stretch their limited financial resources as far as they could go. Few outlets offered as perfect a way of doing so than deep discounter Dollar General (NYSE: DG).

The dollar-store leader distinguishes itself from Walmart by not only offering consumers essential goods but doing so at rock-bottom pricing. And the investments the discount retailer made in its consumables segment, adding more refrigerators and freezers to its stores as well as fresh produce in a growing number, mean customers come back more often.

Although Dollar General's stock trades at a bit of a premium, its category leadership makes it buy even if its shares don't crash with the rest of the market.

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.

Few restaurants were as perfectly poised to capitalize on the move to only takeout and delivery as Domino's (NYSE: DPZ) has been, since its whole pizza business is built on those options. Moreover, its previously controversial "fortressing" strategy of flooding neighborhoods with restaurants even if it cannibalized sales at existing locations paid off as consumers were able to find a pizzeria that could have their food ready in short order.

Said CEO Richard Allison, "I am if anything more enthusiastic about fortressing given what we've seen during the pandemic and the increased sales and momentum that we've had there around our delivery business."

Closing down restaurants again can only help keep the leading pizza shop growing, while a market crash would make its stock even more attractive.

ALSO READ: How COVID-19 Is Permanently Changing Restaurants

It's not just people who have to eat -- pets do, too. And leading online pet products retailer Chewy (NASDAQ: CHWY) has benefited from the trend convergence of e-commerce and pet humanization.

As consumers treat Fido more as a family member and less as just a pet, they increasingly scale up the quality and quantity of what they purchase.

The American Pet Products Association (APPA) expects pet industry spending to increase to $99 billion this year and continue growing at an annual rate of 5% to 6%. And most of those dollars are going to food, which is where Chewy generates most of its revenue.

A stock market crash would keep consumers buying online; thus, pet parents would keep turning to Chewy to restock their pet's pantry.

Beyond food, one of the most sought-after items during the coronavirus crisis has been cleaning supplies, and Clorox (NYSE: CLX) has been unable to keep up with the demand for its disinfecting wipes.

CEO Benno Dorer has said its wipes are "the hottest commodity in the business right now," and demand is only increasing. Despite having 10 contract manufacturers helping to produce them, the company needs to add more, because the shortage of Clorox wipes is only expanding.

Earlier this year, Dorer had expected the shortage to dissipate by the summer, but now he says it will last into the new year. A second wave of coronavirus might extend that out even further as demand is already running 600% above normal, and a market crash could give investors a new chance to get into this critically important company.

Perhaps a somewhat controversial choice, GameStop (NYSE: GME) should be on your radar in the event of the coronavirus causing another market crash. This is because many believe there are few better ways to endure stay-at-home orders than by playing video games.

With its stores closed, GameStop's e-commerce sales skyrocketed 1,400% last quarter, showing the company may have found a way to survive gaming's digital transition. However, this pick is risky because GameStop brick-and-mortar stores are increasingly irrelevant.

The company's stock already trades at a valuation expecting it to not survive, going for just two times the free cash flow it produces. But sales of video game hardware, software, accessories, and game cards continue to surge, and the video game retailer could be the biggest investment surprise of a second wave.

DIY center Lowe's (NYSE: LOW) benefited from another trend that developed during the pandemic: that of consumers wanting to fix up their homes. Because the home-improvement center has a greater focus on the consumer segment of the market than rival Home Depot, which targets contractors more, Lowe's has performed better.

A lumber shortage born of the pandemic could eventually put a damper on profits, but Lowe's generates more sales from things like hardware, lawn and garden products, and home decor. This puts it in a better position than Big Orange, which generates most of its sales from building materials.

ALSO READ: 7 Home-Improvement Projects To Do During the Coronavirus Crisis

There are many companies that investors should take note of if the market tanks again, but these nine businesses have proven they have the mettle to make it through a crisis and could very well do it again.

A second wave of COVID-19 might not have the same reverberations as the first one did, but it could still cause the market to take a tumble. If the stocks of these businesses fall along with the rest -- and in some cases, even if they don't -- investors should be ready to pounce on the opportunity.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Home Depot. The Motley Fool recommends Chewy, Inc., Domino's Pizza, and Lowe's and recommends the following options: long January 2021 $120 calls on Home Depot, short January 2021 $210 calls on Home Depot, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.