These 3 Stocks Thrived in Market Crashes
The stock market has been on a rollercoaster ride in recent years, and many investors are worried about another crash. While getting out of the market may not be the best option for risk-averse investors, there are stocks that have proven to be resilient during times of turmoil.
Walmart (WMT), McDonald's (MCD), and Gilead Sciences (GILD) are three stocks that have beaten the S&P 500 in both 2008 and 2022. In 2008, the S&P 500 declined by 38%, but Walmart's total returns were up around 20%. In 2022, when the S&P 500 declined by more than 19%, Walmart generated total returns that were only slightly negative.
McDonald's has also been a resilient stock to own amid turmoil. Its fast food restaurants offer value to consumers, making it appealing during times of economic stress. During the most recent crash in 2022, McDonald's stock was up nearly 1% when including its dividend. Gilead Sciences provides treatments for serious life-threatening conditions, making its products necessities for certain people.
Gilead's stock rose an impressive 24% (when including dividends) in 2022, as it was the best performer on this list back then. The company continues to be a good value buy, trading at 15 times its estimated earnings based on analyst projections. It also offers a decent dividend that yields 2.3%.