5 Stocks to Buy Now Even if the Market Crashes

Posted on June 2, 2021 |

Note: Post may contain affiliate links.

Tired of news about the market crashing? Here are stocks to buy now and mind you, these are not just ordinary stocks. These are forever stocks that you can hold and profit for long term.

I’m tired. I’m tired of constantly having to find new stocks to buy and then wondering when to sell.

What if, instead, there were stocks you could buy…hold on to them for 20 or 30 years and just watch the share price run higher. In this video, I’m going to show you how to find the disruptive trends changing our lives and the stocks to buy that will benefit over the next decade and more. Then I’ll reveal the five stocks I’m buying and holding forever, my forever stocks. We’re talking stocks to buy and hold, today on Let’s Talk Money!

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The Threat of Market Crash

Nation, the year started with investors dancing like it was the roaring 20s! Stocks like GameStop, Tesla and the Ark Invest funds were surging. Doge and other cryptocurrencies were producing 10-times returns and all was right with the world!

Now that dream has become a nightmare and many of those best investments have crashed by half or more.

But there is a way to beat this kind of boom-bust cycle of investments, a way to find stocks to buy and hold that will produce the double- and triple-digit returns to reach your goals! Stocks you can buy now for the next decade and make multiples on your money. Stocks like Facebook which has jumped ten-fold over the last ten years or Amazon that has turned a $10,000 investment into one-hundred and fifty grand over the last decade.

How to Survive the Market Crash by Buying Stocks of the Future

In this video, I’ll show you how to find the disruptive trends changing our lives. I’ll reveal the five trends I’m following and the five stocks I’m buying right now to benefit from each along with how to research and narrow your own list of stocks.

That idea of investing in disruptive trends is so powerful because these are forces that are playing out over decades, not just year-to-year. That means you don’t have to time the market or buy in at exactly the right time.

The trends and the stocks I’ll highlight in this video are benefitting from massive changes to our lives, changes with the weight of trillions of dollars that will drive share prices higher!

See the 5 Biggest Stock Positions in My Portfolio using the Motley Fool

The video is part of a four-part series in partnership with The Motley Fool to help start investing and build a portfolio. I’ll be putting all four videos into a special playlist on the channel called ‘Ultimate Guide to Start Investing'.

As a bonus, for the first time on the channel, I’m revealing the top five stocks in my own portfolio in a free report. These are the five biggest stock positions I’m holding, stocks to benefit from the biggest trends over the next decade.

In fact, the five stocks that I’m going to show you in today’s video are the perfect addition to the top five stocks highlighted in that report, a complete 10-stock portfolio in the disruption economy.

It’s an exclusive report only available through this link below so make sure you click through and check that out.

FREE Report! See the 5 Biggest Stock Positions in My Portfolio! Five stocks I'm investing in for the biggest trends of the next decade! Don't Miss this Free Report – Click Here!

We’re getting right into those five stocks and I’ll cover how to find these disruptive trends and the five trends I’m following as we go. First though, I want to get your input on this. Of the five disruptive trends I’ll cover, which do you think is the most powerful? Which do you think is the most certain and far-reaching? So watch through, scroll down and let me know in the comments, which of these trends is the one you would invest in?

5 Stocks to Buy Now Even When the Market is Crashing

Our first stock to watch, Pure Storage, ticker PSTG, is leading in a trend nobody is talking about and could have a major catalyst developing.

Pure has some of the most advanced data storage products for businesses but is also shifting to a storage as a service model in the cloud. It’s enabling businesses to store, manage and analyze their data without the expensive on-site hardware.

That means, not only is it stealing market share from legacy hardware storage companies, but it’s building a recurring stream of subscription revenue that will drive cash flow every quarter. Last year was tough for the B2B enterprise market with just 2% revenue growth but look at the last two bars on the right, the annual numbers. Subscription revenue jumped 33% over the year and was a third of total revenue.

Management is guiding to 15% revenue growth this year as companies get back to spending on IT and data services and Pure Storage is in one of my favorite undiscovered trends.

Nation, we live in an era of data and it has to be stored somewhere. The market for enterprise data management is expected to grow at a 10% annual pace to $136 billion by 2027 with cloud services growing even faster.

The intense computing power needed for a lot of the other trends like AI and digitization is driving the need for super-fast data storage and analytics, something Pure is revolutionizing with its cloud service model.

Finding a Catalyst to Boost the Market

Besides that trend growth, I’ve just found a catalyst that could be about to boost this market further. A new crypto coin, Chia, is the first to use storage space to mine coins rather than the processing power used with others like bitcoin.

It’s a more eco-friendly way to mine crypto and has the potential to be a giant demand shift to the storage industry. Think about it. Shares of Nvidia have surged almost 1200% in the last five years because it’s graphics cards are the defacto hardware to mine crypto.

The potential to use storage to mine crypto has already caused hardware storage companies to surge and will drive up the cost for data storage. That’s going to make that cloud service model from Pure more economical and help it win more market share.

Pure Storage is also one of the least expensive stocks on the list at a price of just 3-times sales and it’s got a net cash balance sheet with $1.25 billion in cash against just $900 million in debt. The average analyst estimate here is for $28 a share for a 55% return over the next year but I like this one way higher over that long-term outlook.

And you’ll notice most of the companies in this list are in those disruptive trends changing our lives, companies that are changing the way things are done and booking massive sales. So I want to show you how to find these trends and the stocks to buy. First is looking for the companies changing how a service or product is delivered. A great example of this is Carvana, ticker CVNA, the internet retailer changing the way cars are sold and producing a 2,100% return since 2017.

Investing Tip: Look for an Spontaneously Advancing Technology Stock

The other way to spot these disruptive companies and trends is to look for companies with breakthrough tech that is changing the service or the product itself. And it’s hard to find a better example of this than Tesla. Electric vehicles weren’t something Tesla invented but it did improve the technology and bring it to a point of mass commercialization like no one else could, all to the effect of a 14,500% return since its 2010 IPO.

Back to our list though and Nation, we’ve all seen the stats behind hacking, identity theft and cybercrimes. More than 14.7 billion digital records have been stolen since 2013. That’s more than twice the number of people on earth.

From the hack of Marriot that saw over 500 million accounts stolen over four years including names, passport numbers and emails; to the Equifax breach in 2017 where 143 million accounts were stolen including over 200,000 credit card and social security numbers.

The 21^st century is an online diary and it’s not your little brother trying to steal it.

Cybercrime is estimated to cost $6 trillion a year by 2021 and companies are turning to cybersecurity firms for protection. According to a Symantec study, average sales growth at cybersecurity companies has increased 15% annually over the past three years, more than two and a half times growth 6.3% a year for all S&P 500 companies.

And this second stock to buy is innovating how that cybersecurity is delivered, $23 billion Zscaler, ticker ZS.

The company is a cloud-delivered security software company focusing on the large enterprise space in two product categories; managing applications and websites online and then internal corporate applications.

Cloud is really the key here and Zscaler’s main target is taking market share from the legacy cybersecurity providers built on hardware delivery. The company reported 48% sales growth in the most recent quarter and new product launches this year will give it opportunities to cross-sell clients.

And for a smaller, newer company, Zscaler is actually profitable booking $0.36 a share in earnings over the last year on just over $400 million in sales. While shares trade for a pricey 36-times this year’s expected sales, revenue is forecast to double to $1.1 billion by 2023 and the company is demonstrating it’s able to take a bigger slice of that growing cybersecurity pie.

stocks to buy now even if the market crashes

We’ve still got three more of these forever stocks to highlight but I want to give you two more ways to find these best stocks to buy. We looked at how to find the disruptive trends but now I want to show you how to analyze the companies within them, how to make sure you’re investing in the best stocks within the trends.

How to Analyze Good Stocks to Buy and Hold Forever

First here is you’re looking for some kind of competitive advantage the company has over legacy providers of that service or product. These disruptive companies aren’t coming into a new market, they’re competing with established players that are going to fight for every dollar of sales. So what does this new company do better than the old model?

With ZScaler, it’s in that innovative model of delivering security as a service over the cloud rather than through on-site and hardware solutions. It’s this competitive advantage that has helped the company grow to half a billion in sales at a 55% annual growth rate.

Now growing sales is one thing but eventually even these fast-growing disruptive companies have to turn a profit. So you’re also looking for a path to profitability in these, looking at the trend in the operating margin.

Remember, operating profit is what’s left of sales after paying cost of materials and all the core expenses to run the business. That operating margin then, the operating profit divided by sales, is the core profitability of a company…how efficiently it turns sales into profits.

Most of these small, fast-growing disruptive companies aren’t going to be profitable yet but you want to see a trend in that profitability. You want to see the operating margin improving over time, with faster sales growth than the growth in expenses, so the company has a path to profitability.

For our next trend, this one really got a jumpstart during COVID and is one of those things that is only going to expand from here. The global e-learning market for online classes is expected to reach $374 billion by 2026, growth of 15% annually from last year.

2U Inc, ticker TWOU, is a $2.7 billion provider of tech services for colleges and universities. It’s main service here is developing online platforms for delivering education over the internet…which is a pretty great model to be in right now.

The company works with more than 75 universities to offer 475-plus programs. Full course enrollments were up 33% year-over-year in the first quarter, just slightly lower from growth set in Q4, and I don’t think this model is going away even after COVID. We’re in a decade-long shift to digital delivery and that’s going to benefit companies like 2U.

Sales grew 32% last year to $831 million and are expected to top $1.2 billion by 2023. I think the company can beat that with the acceleration we’re seeing in online learning and this is actually one of the least expensive recommended stocks to buy in the list, priced at just 2.9-times on a price-to-sales basis.

The next trend I’m following is the one I’m most excited about but that’s just because I’m an old fart and might need some of this soon. Innovation has pushed the cost of multi-cancer and other gene screening down 95% from 2015 to just $1,500 today and it’s expected to fall another 80% to just $250 by 2025. That current $1,500 screening cost though, the purple line here, is still only reimbursable for those 60 and older. As the cost lowers though, you get the test down to where people much younger are being reimbursed and they’re willing to pay. At a $1,000 test, we could open multi-screening cancer to those as young as 40 years old.

Being able to test people at a younger age could potentially save more than 60,000 people a year in the U.S. alone and means a massive increase in the market for screening and testing stocks to buy.

Invitae Corporation, ticker NVTA, has come down 55% from the recent peak and could be one of the best deals of the list.

Invitae is leading in that genetic testing and screening area of the market, focusing initially in the oncology segment but really expanding it throughout genetic information testing to answer questions about health in all age groups from pediatrics to fertility and diagnostics.

The company is estimating a $154 billion market opportunity across four segments and is already one of the most advanced in our genomics stocks for revenue.

Sales of $464 million expected this year represent growth of 65% from last year and are forecast to keep growing at a 37% annualized pace to $1.2 billion by 2024. That makes it one of the less expensive on my list at 11-times on a price-to-sales.

Now the balance sheet is a little shakier here with just $360 million in cash against $330 million in debt but I still don’t think there’s any financial trouble with funding here. With that kind of sales growth expected, the company will have no problem getting the funding it needs.

Healthcare Information Technology is another huge trend I’m following and it just now seems like a lot of the innovation we’ve seen in other sectors is catching up to change healthcare delivery. From records management, healthcare delivery and diagnosis, we’re seeing the healthcare space totally revolutionized and Global Market Insights estimates the market could nearly triple to $441 billion by 2025.

And while Teladoc Health, ticker TDOC, has suffered from that tech stock selloff lately, there’s no better company in this theme.

Teladoc is the global leader in virtual healthcare with a provider network that covers 70 million U.S. patients and a billion member data points from traditional telehealth to remote monitoring and next generation primary care.

Obviously last year was huge here, like two years of growth in one, but the company was already growing at a solid rate. Membership growth has grown 40% annually since 2016 and 10.6 million patient visits last year.

Revenue doubled last year and 80% of that is from recurring services so I like it for the stability even if growth for telehealth slows from last year’s faster pace. Longer-term, telehealth and virtual care is the future but I think the data is really the undiscovered value here, processing all that patient data for analysis and research.

Now even after the selloff, shares are still pricey at 10.9-times on a price-to-sales basis but revenue is expected to grow at a 28% pace annually through 2024 so definitely the potential to grow into that valuation over the long-term.