3 Stocks to Buy if Calamity Hits the Market

stocks to buy - 3 Stocks to Buy if Calamity Hits the Market

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  • Amazon (AMZN): The leading e-commerce company, Amazon is where people turn when they can’t go out for supplies.
  • CVS Health (CVS): A leading pharmacy retail chain that is indispensable during a health crisis.
  • Costco (COST): Nobody does bulk buying better than Costco, which has become essential for groceries and other consumer staples.

Calamity is never far away, and we’ve certainly been dealing with enough crises over the past two years. However, some stocks perform exceptionally well during times of turmoil and strife, and those are the stocks to buy now.

This was certainly the case during the Covid-19 crisis as certain securities outperformed the broader market. From a global pandemic and shortages of items such as semiconductors and wheat, to runaway inflation, sky high energy prices, and a war in Europe, there’s been plenty for investors to fret about in recent months.

Typically, the best stocks to buy in times like this are those of companies that become essential to people during a health scare or other calamitous event. With the potential for more problems on the horizon, including a possible recession, we thought it would be helpful to look at three stocks to buy if calamity hits the stock market (again).

Ticker Company Current Price
AMZN Amazon.com, Inc. $2,887.00
CVS CVS Health Corporation $101.68
COST Costco Wholesale Corporation $571.70

Stocks to Buy if Calamity Hits the Market: Amazon (AMZN)

photo of an Amazon (AMZN) box on wood floor of home
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Did anyone get through the Covid-19 pandemic without using Amazon (NASDAQ:AMZN)? The e-commerce giant quickly became the go-to for consumers around the world as brick-and-mortar retailers were forced to shutdown and stay-at-home orders were enforced in communities large and small.

Suddenly people turned to Amazon to buy everything from new laptop computers to toilet paper, and everything in between. The Seattle-based online retailer rose to the occasion, ramping up its operations and providing reliable delivery far and wide.

As a result, AMZN stock skyrocketed during the pandemic, rising 106% from the onset of the global crisis in March 2020 through November 2021 when technology securities peaked. And while Amazon’s share price has slumped 13% so far in 2022, the current decline should be seen by investors as more of a pause than the start of a prolonged downturn.

Rest assured that Amazon’s stock will continue to thrive, especially with a 20-for-1 stock split coming this summer. And should catastrophe strike and we be once again forced to shelter at home, you can bet that people will again turn to Amazon to deliver the essentials.

CVS Health (CVS)

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Another company that proved its mettle during the pandemic was CVS Health (NYSE:CVS). The Rhode Island-based chain of retail pharmacies became essential during the Covid-19 crisis, not only for over-the-counter medications and prescription drugs, but also for Covid-19 vaccines, which the retail outlets dispensed in neighborhoods across the U.S.

Like Amazon, CVS Health took full advantage of the health crisis and rose to the moment at hand, positioning itself as a trusty dispenser of not only Covid-19 inoculations, but also medical masks and rapid antigen tests.

Consequently, CVS stock performed strongly during the pandemic, gaining 90% since the Covid-19 pandemic began in March 2020. Today, CVS shares change hands at just under $102 a share, just below their all time high of $107. And so far this year, CVS stock has outperformed the broader market, essentially flat since January compared to a 10% decline for the benchmark S&P 500 index.

Should calamity strike, it’s a safe bet that consumers will once again flock to their local CVS pharmacy for medical help and more.

Stocks to Buy if Calamity Hits the Market: Costco (COST)

A Costco Wholesale (COST) warehouse in Auburn Hills, Michigan.
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If people turned to Amazon for household items and CVS for medications during the pandemic, they made a beeline to Costco (NASDAQ:COST) for groceries and other consumer staples. Buying in bulk took on added urgency during the depths of the pandemic when lockdowns were at their most restrictive. Suddenly, people were lined up to buy massive amounts of toilet paper, gallons or ketchup and enough meat to last for months. In the early days of the pandemic, Costco had a difficult time keeping up with demand.

As with the other companies on this list, Costco adapted and met the challenge posed by the pandemic, enhancing its online shopping experience and adding new products that consumers demanded. The company thrived and its stock gained as a result. In the last two years, COST stock has increased 110%. The company’s stock performed so well during the Covid-19 crisis, that at the end of 2020, Costco issued a special one-time dividend of $20 per share. Should anything bad happen, Costco will again be viewed as an essential holding.

 On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


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