Nasdaq Crash Prep: 3 Stocks You Can’t Afford Not to Own


  • The Nasdaq Composite index has been a surprising laggard in recovery and may tumble once.
  • Starbucks (NASDAQ: SBUX): The coffee shop has global diversification and a loyal customer base that should protect it in a downturn.
  • Genuine Parts (NYSE: GPC): The aftermarket auto parts retailer is benefiting from drivers keeping their cars on the road longer.
  • Palantir Technologies (NYSE: PLTR): The AI Big Data stock has successfully expanded its business from the government to the private sector.
Nasdaq Crash - Nasdaq Crash Prep: 3 Stocks You Can’t Afford Not to Own

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Technology has been one of the best-performing sectors over the past few years. The Magnificent Seven stocks almost all came from the tech sector. They were responsible for virtually all of the market’s gains last year.

So it might be surprising to learn the tech-heavy Nasdaq Composite index only recently shook off the shadow of the 2021 bear market crash. During that period the index fully lost one-third of its value. Even though tech stocks comprise 57% of all the companies that make up the Nasdaq Composite, the index didn’t reach its all-time again until the end of February. 

Today it sits barely 3% above that threshold. That’s a long time to be down, and now the economy is on shaky ground again. Inflation is rising and interest rate cuts are on hold till later this year. A new pullback is possible.

Investors should prepare for that eventuality. These three extraordinary stocks to own before the Nasdaq crashes again could be what saves your portfolio from annihilation. You can’t afford not to.

Starbucks (SBUX)

the Starbucks (SBUX) logo on a sign outside of a coffee shop
Source: Grand Warszawski /

Coffee shop Starbucks (NASDAQ:SBUX) is the first stock investors should consider when preparing for a market downturn. With over 35,000 locations worldwide, Starbucks has vast geographic diversity that should help it weather any localized storms.

Admittedly, its China business is under pressure from a slowing economy and the coffee shops in the Middle East are also subject to protests over the fighting going on between Israel and Palestinians. International markets account for 20% of Starbucks’ total revenue. But those are short-term headwinds. First-quarter results were fairly strong with comparable store sales up 5% globally including 10% gains in China.

SBUX stock, though, trades right at its 52-week low of $90 a share even though Wall Street expects earnings to expand significantly over the next five years. Analysts forecast profits growing at a compounded rate of 15% a year. There are speedbumps but none that should seriously impair future growth as Starbucks boasts a loyal cadre of customers.

The company was a pioneer in the mobile and digital market with its app and SBUX stock will use that expertise to protect itself. You can use it to protect your portfolio during any Nasdaq crash.

Genuine Parts (GPC)

A young woman reads a book while behind the wheel of a self-driving car.
Source: Shutterstock

Aftermarket auto parts retailer Genuine Parts (NYSE:GPC) is the second stock you need for a downturn. Because the cost of both new and used cars is still too high, people are holding onto their cars longer than ever. The average age of the 284 million vehicles on U.S. roads hit a record high of 12.5 years last year, according to S&P Global (NYSE:SPGI) data. That’s great news for the owner of the NAPA Auto Parts chain of stores.

Genuine Parts owns 9,600 retail stores serving the do-it-yourself market as well as professional shops. The auto parts retailer generated $23 billion in revenue last year for profits of $1.3 billion, up 12% year over year. It was the third consecutive year GPC stock posted double-digit earnings growth.

Even better is Genuine Parts pays a dividend that yields a healthy 2.5% annually. It has raised the payout for 68 consecutive years making it a Dividend King. It’s solid track record of growth will help minimize any pain from a Nasdaq crash.

Palantir Technologies (PLTR)

Palantir logo on the smartphone and the company share price on the day of opening the trade October 1, 2020. Palantir valued at $15.8bn in stock market debut. PLTR stock
Source: Ascannio /

The last stock you should consider for your portfolio is Palantir Technologies (NYSE:PLTR). The data analytics firm is deemed the “best pure-play” artificial intelligence stock and has also been referred to as the “Messi of AI,” referring to Argentinean soccer great Lionel Messi.

The accolades pour in for Palantir because it can make practical use of AI technology by applying it to business data and turning it into actionable results for clients. Those clients are found in both the business sector and government. 

Started as a numbers cruncher for the government’s three-letter spy agencies, Palantir recognized there are greater growth prospects in the private sector, which also collects vast reams of data but has no practical way of putting it to use. Its Gotham and Foundry platforms do exactly that for government and business, respectively.

Palantir stock is up 44% in 2024 and has tripled in value over the past year. Although it trades at seemingly nosebleed valuations, that’s only because it recently became profitable. It recorded its first full year of GAAP profits last year and notched five consecutive quarters of positive earnings. With this firm footing, PLTR stock offers ballast to any ship tossed by the market’s waves.

On the date of publication, Rich Duprey held a LONG position in GPC stock. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.

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