2 stocks I’ll look to buy in the event of a stock market crash
2025 has been a strong year for global share markets. The FTSE 100 and S&P 500, for instance, have both risen 14% since 1 January, shrugging off worries of a stock market crash as pressures grow.
Yet, those concerns need to be taken seriously. Rising inflation and signs of economic slowdown are troubling on their own. With fiscal challenges in Western economies mounting, and war threats rising in Europe and the Middle East, the outlook for markets is especially precarious.
A stock market crash is by no means certain, of course. But it pays to be prepared, by reviewing one’s portfolio for risk, and by building a list of stocks to buy if equities retrace. While unnerving, price corrections also provide some of the best opportunities to buy great companies on the cheap.
Here are two stocks I’ll look at buying if share markets plummet.
AG Barr
AG Barr‘s (LSE:BAG) shares have risen 10% in the year to date. This means they change hands on a forward price-to-earnings (P/E) ratio of 16.1 times.
That’s above a reading of roughly 13 times for the broader FTSE 250. And it’s a premium I’m not willing to pay right now.
Barr makes some of the UK’s most popular soft drinks like Irn Bru and Rubicon. They benefit from exceptional brand power that keeps them in high demand even during downturns. Indeed, latest financials showed revenues up 3.1% in the six months to July, even as broader pressure on consumers’ wallets endured.
The drinks maker can therefore be a great stock to buy to enhance a portfolio’s robustness. Having said that, I am concerned about its growth prospects compared to rivals like Coca-Cola CCH, given its lack of a significant international presence.
For this reason, I’m happy to sit on the sidelines for the moment.
Clarkson
Clarkson‘s (LSE:CKN) share price has headed in the oppositive direction in 2025, down 7% since 1 January. Trade tariffs have exacerbated economic pressures and regional conflicts have emerged, causing weakness across the shipping market.
It’s perhaps no surprise that the shipbroker has slumped in value. It’s a drop that’s caught my attention, but not roused my appetite to consider opening a position. A forward P/E ratio of 17.3 times is still a bit high for me given ongoing risks.
I’ll take a fresh look if Clarkson’s shares reverse again, however. As the world’s largest shipbroker, it’s in pole position to capitalise on improving trade flows when the economy picks up. A dearth of new shipping supply in recent years will give freight rates a huge shot in the arm too when the recovery happens.
The FTSE 250 company also stands to capitalise from the rapid energy transition. This is driving segments like LNG carriers and vessels that support offshore wind farms, and provides significant long-term earnings opportunities.
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Royston Wild has positions in Coca-Cola Hbc Ag. The Motley Fool UK has recommended A.G. BARR and Clarkson Plc. 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.
