3 shares to buy in a stock market crash

Given their growth opportunities, Rupert Hargreaves explains why he thinks these are some of the best shares to buy in a stock market crash.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

It looks as if a stock market crash is beginning to unfold around the world. I want to take advantage of this environment. I’ve been looking for shares to buy for my portfolio that are currently on sale. Here are three companies I’d buy today based on their valuation and long-term potential. 

Stock market crash bargains

The first on my list is the Asia-focused insurance group Prudential (LSE: PRU). Shares in this company have fallen heavily as it’s highly exposed to Asia. There are concerns that the failure of the Chinese property group Evergrande could have a knock-on effect on the region’s economy. This may have an impact on the demand for Prudential’s services. 

However, in the stock market crash, I’d buy this company because life insurance isn’t something consumers jump in and out of. It’s a long-term product. That suggests demand for Prudential’s services should remain robust in the long term

Should you invest £1,000 in Wise Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Wise Plc made the list?

See the 6 stocks

To help strengthen its balance sheet, the group’s also looking to raise £2bn through a listing of its shares in Hong Kong. These are reasons why I think this is one of the best shares to buy now. 

As we advance, some risks it may face include competition and higher interest rates, which could dent demand for its services. 

Shares to buy for growth

I’d also buy Standard Chartered (LSE: STAN) for my portfolio for the same reasons outlined above. Shares in the emerging markets-focused bank are falling as investors are becoming concerned about its growth outlook.

Nevertheless, I believe emerging markets should continue to grow in the long run. That’s why I think this is one of the best shares to buy for growth in a stock market crash. 

Standard’s strategic priorities are to expand its high net worth customer base and increase the size of its asset management business. It’s progressing on both of these fronts and should continue to do so as emerging economies recover from the pandemic. These are the reasons I’d buy the stock.

However, risks I’ll be focusing on include falling interest rates, which could reduce the amount of profit the group can make from its loans, and competition. Increased competition may push profit margins lower. 

Finally, I’d buy mining giant Anglo American (LSE: AAL). Commodity prices have dived over the past few weeks, as supply’s risen to meet growing demand. This will undoubtedly impact industry profits, but commodity demand’s still expected to grow over the next few decades.

So, while it looks as if the company will experience some headwinds in the near term, over the next five or 10 years, I think prices will continue to rise, and miners like Anglo will reap the rewards. 

Still, while I think this is one of the best shares to buy in the stock market crash, this company may not be suitable for all investors. Commodity prices could continue to fall, and the enterprise may face high environmental costs. These costs could impact profits, which would ultimately be bad news for investors. 

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Prudential and Standard Chartered. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

If an investor put £10k into Greggs shares one month ago, here’s what they’d have today

Greggs shares have had a tough year but Harvey Jones says they're notably cheaper as a result, while the dividend…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

The Phoenix share price jumps 7.5% on today’s results, but still yields a stunning 9.4%!

Harvey Jones put his faith in the Phoenix share price and this morning was rewarded with a 7.5% jump on…

Read more »

Investing Articles

What’s been going on with the Barclays share price?

The rising Barclays share price reflects confidence in management’s strategy to improve business performance and enhance shareholder returns.

Read more »

Investing Articles

Prediction: in 1 year, the IAG share price could reach as high as…

The IAG share price has almost doubled in the last 12 months, but can this momentum continue in 2025? Zaven…

Read more »

Investing Articles

Prediction: in 12 months, here’s where the Glencore share price could be…

The performance of Glencore’s share price has been lacklustre, to say the least. But could all that change over the…

Read more »

Investing Articles

See how much an investor needs in their ISA to earn a £499 monthly second income

Harvey Jones crunches the numbers to show how it's possible to build a long-term second income by investing in a…

Read more »

Investing Articles

I’m considering buying more of this struggling FTSE 100 stock

This FTSE 100 stock hasn't exactly set our writer's portfolio on fire during the time he's owned it. But Paul…

Read more »

a couple embrace in front of their new home
Investing Articles

Prediction: in 1 year, the Taylor Wimpey share price could reach…

Can Britain’s reformed planning scheme send the Taylor Wimpey share price into overdrive? Here’s what the latest analyst forecasts predict.

Read more »