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Home›Accounts›3 stocks I will absolutely and positively buy if the stock market collapses again

3 stocks I will absolutely and positively buy if the stock market collapses again

By Anita Leet
March 11, 2021
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Will the stock market collapse again? Absolutely yes. It’s a question of when it’s not so.

Many investors expect this to be sooner rather than later. We are already seeing increased market volatility as the number of COVID-19 cases in the United States increases. The prospect of a second wave of severe epidemics in the fall may be enough to burst what some believe is a market bubble.

I don’t want the stock market to plunge again anytime soon. But I readily admit that a part of me wouldn’t shy away from the opportunity to pick up slices of several of my favorites. growth stocks at a lower price. Here are three stocks that I will absolutely, positively buy if the stock market collapses again.

Image source: Getty Images.

1. Quickly

Since its low point on March 16 during the last major stock market downturn, Quickly (NYSE: FSLY) made a staggering gain of over 680%. I bought the stock a few weeks ago, too late to participate in most of the mad rush, but early enough to still enjoy a substantial return in a short period of time.

Fastly was a huge winner because it’s an ideal COVID-19 game. The company’s cutting-edge computing and content delivery network (CDN) platforms are accelerating the delivery of applications and data from the cloud, which is increasingly important as businesses enable employees work from home like never before.

Stocks are currently trading at over 33 times their sales with a market cap approaching $ 8 billion. This is admittedly a nosebleed assessment. I don’t think it is too late to buy quickly, however: The company’s addressable market is expected to grow to around $ 36 billion by 2022, giving Fastly plenty of wiggle room.

I would love to have the opportunity to increase my position in Fastly if this slows in an overall decline in the stock markets. But I doubt I’ll wait and see if that happens. The outlook for Fastly is so good that I will probably buy more stocks regardless of what the stock market is doing.

2. Livongo health

Actions of Livongo health (NASDAQ: LVGO) have soared more than 270% since the low in mid-March. I only bought the stock in early May, but it still generated a huge gain over the past two months.

Livongo is another company that has benefited from the COVID-19 pandemic. The company specializes in providing technologies that help people better manage their chronic illnesses. Remote monitoring and disease management for people with diabetes and hypertension is central and is likely to gain importance even after the pandemic is over.

A price / sales (P / S) ratio above 36 would scare most investors. It would be for me too if I did not have confidence in Livongo’s growth potential. The company estimates its addressable market to be close to $ 47 billion. But this total only includes the US market and only diabetes and hypertension. Livongo is also targeting other chronic diseases such as behavioral health issues and may expand into international markets in the future.

Still, it would be nice to buy more Livongo Health shares on a dive or dive. My opinion is that Livongo, like Fastly, should be more resilient than most actions if the COVID-19 pandemic worsens. But that could go back a little further. If so, I’ll be ready to pounce.

3. The Trade Desk

The Trade Desk (NASDAQ: TTD) The stock has climbed more than 56% since the start of the year and more than 180% from its low on March 18. I am happy to say that I have owned the stock for quite some time and have been part of all the fun in 2020 so far.

The COVID-19 outbreak poses a risk to The Trade Desk. The company’s programmatic advertising platform generates revenue when advertising companies buy ads. If the clients of these agencies cut their advertising budgets, The Trade Desk suffers. This is what happened in March, but it was only a brief headwind: The company’s sales rebounded quickly.

Yes, The Trade Desk shares are trading at a premium price with a P / S ratio of 27. However, the meteoric rise of connected television (CTV) is fueling rapid growth in programmatic advertising. Over the next decade, I expect a large chunk of the projected global $ 1 trillion advertising market to be programmatic – with The Trade Desk as the primary beneficiary.

If another stock market crash occurs in the near future, it will likely be due to fears of a second wave of the coronavirus outbreak or a prolonged recession resulting from the pandemic. Either of these scenarios could bring Trade Desk action down, especially if advertisers get spending under control. My opinion, however, is that this would only be a temporary problem and present a tremendous opportunity to buy The Trade Desk at a low price.

Find out lenders with debt consolidation.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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  3. Why the Trade Desk will benefit as advertisers seek flexibility
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