Stocks to buy

Although it’s typically a good thing to be an optimist, having a realistic framework may allow you to think clearly about the best stocks to buy after the market crashes. Of course, it’s impossible to tell if the market will really crash or not. However, with the recent failures of two major financial institutions, it appears the Federal Reserve may have broken something in its efforts to contain inflation.

Put another way, a soft landing for the economy may be off the cards. Almost certainly, the Fed will land the monetary plane. However, it’s very possible that we could lose a few passengers. Perhaps most of us will be able to walk away from the incident. Increasingly, though, it appears that our survival will come at a hefty cost. Still, this too shall pass. When the smoke finally clears, investors should consider targeting these best stocks to buy.

GOOG GOOGL Alphabet $105.55
PYPL PayPal $76.30
META Meta Platforms $201.81
TSM Taiwan Semiconductor $92.36
SE Sea Ltd. $79.83
SMR NuScale Power $8.86
COIN Coinbase $84.36

Alphabet (GOOG, GOOGL)

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One of the top technology firms in the world, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is off to a great start this year. Since the Jan. opener, the Class C GOOG stock gained over 14%. However, in the past 365 days, GOOG gave up 25% of equity value. If the market jitters from the ongoing banking crisis gets the best of the market, GOOG could be victimized further.

Still, if the worst-case scenario materializes, Alphabet would rank among the best stocks to buy after the crash. Presently, the company enjoys a solid balance sheet. In particular, its Altman Z-Score pings at 9.67, indicating very low risk of bankruptcy.

Just as importantly, Alphabet benefits from strong operational metrics. Its three-year revenue growth rate comes in at 22.9% while its net margin stands at 21.2%. Both metrics rank well within the upper half of the industry. Also, GOOG represents a perennial favorite among Wall Street analysts, who peg it a unanimous strong buy. At the moment, their average price target comes out to $123.78, implying nearly 21% upside potential.

PayPal (PYPL)

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A popular financial technology (fintech) firm, PayPal (NASDAQ:PYPL) specializes in digital payments services. As well, it offers business management applications for entrepreneurs and enterprises. Fundamentally, PYPL should benefit from the burgeoning gig economy. As more people question the viability of the nine-to-five grind, PayPal could be an organic beneficiary. Sure, competition in fintech is stiff. Nevertheless, PayPal features a brand awareness advantage.

However, the market hasn’t yet rewarded PYPL shareholders. Since the January opener, it’s down 2%. In the trailing year, it shed more than 36% of equity value. Still, it arguably ranks among the best stocks to buy after the crash because of its resilient financials. Even after the disruptive events of 2022, PayPal features a relatively cash-rich balance sheet. Also, the company delivers operational strengths, such as revenue growth of 16.7% and book growth of 7.4% in the past three years. Finally, Wall Street analysts peg PYPL as a consensus moderate buy. Their average price target stands at $111.29, implying over 52% upside potential.

Meta Platforms (META)

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It’s no secret that tech and social media giant Meta Platforms (NASDAQ:META) struggled badly last year. In early 2022, META traded hands around $330 per share. By the time the closing bell closed out 2022, META’s price tag fell alarmingly to around $120. During this time, the company announced worrying news such as the erosion of the digital advertising market. As well, the tech stalwart handed out plenty of pink slips.

In the year so far, however, META has been on a comeback trail, gaining nearly 57% of equity value. This bullishness confirms that when a quality enterprise like Meta focuses on providing real solutions, it can attract investors. Therefore, even if a devastating market-wide crash materializes, I’d consider META to be one of the best stocks to buy.

Operationally, the company continues to fire on its still-working cylinders. For instance, its three-year revenue growth rate pings at 20.6%. And its net margin beats out many companies in its sector at 19.9%. Lastly, Wall Street analysts peg META as a consensus moderate buy. Their average price target comes in at $224.45, implying nearly 15% upside potential.

Taiwan Semiconductor (TSM)

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A multinational semiconductor contract manufacturing and design company, Taiwan Semiconductor (NYSE:TSM) commands a significant presence in the tech space. While the Covid-19 crisis inspired countries to build their domestic semiconductor infrastructures, you can’t ignore TSM. Per its public profile, Taiwan Semiconductor is the world’s most valuable semiconductor company. It’s also the world’s largest dedicated independent semiconductor foundry.

Sure enough, investors jumped aboard the TSM train, with shares gaining nearly 21% of equity value so far this year. However, in the past 365 days, they’re still off the mark by over 16%. Should a market crash knock out the global equities market, investors should target TSM as one of the best stocks to buy. Aside from its powerful fundamental narrative, the company is an operational monster. Its three-year revenue growth rate stands at 28.4%, while its net margin pings at 44.9%.

Turning to Wall Street, analysts peg TSM as a consensus moderate buy. Their average price target stands at $100.33, implying 12.14% upside potential.

Sea Ltd. (SE)

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One of the riskiest ideas for best stocks to buy after the market crash, Sea Ltd. (NYSE:SE) represents a Singapore-based tech conglomerate. Under its corporate umbrella, Sea specializes in e-commerce, fintech and video games. Each of these segments align with a compelling and burgeoning addressable market. However, the real upside potential for SE lies in its exposure to the Southeast Asia internet economy.

Prior to the deflationary headwinds of 2022 stemming from the Federal Reserve raising benchmark interest rates, many experts anticipated tremendous growth for the Southeast Asia region. Following the downfall of last year, analysts downgraded this sector’s growth potential. Still, they anticipate that the internet economy there will be worth $330 billion by 2025.

To be fair, some of Sea’s financial metrics don’t provide room for much confidence. However, it does have a decent cash balance relative to its debt. Also, Sea’s three-year revenue growth rate stands at 64.8%, a blisteringly high figure. Finally, Wall Street analysts peg SE as a consensus strong buy. Moreover, their average price target stands at $102.64, implying over 33% upside potential.

NuScale Power (SMR)

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A nuclear energy specialist, NuScale Power (NYSE:SMR) focuses on small modular reactors or SMRs. Featuring a smaller physical footprint than traditional nuclear powerplants, SMRs can be integrated in areas inaccessible to their standard-size counterparts. Further, this advanced platform features high-level safety protocols, insuring proper operation. Over time, as the public’s hesitation toward SMRs fade, they can potentially represent a gamechanger.

Notably, NuScale’s small, safe and pressurized water reactor can generate as a baseline 77 megawatts of electricity (MWe). Depending on its clients’ needs, NuScale’s SMRs can be scaled up to generate a maximum capacity of 924 MWe.

Further, with the SMR’s ability to be integrated closer to the source of energy demand, NuScale can not only serve standard requests (such as electrical generation) but also make economically viable desalination and commercial-scale hydrogen production. To be fair, in the last three months, no analyst offered coverage of SMR stock. However, in the past, four experts weighed in (two buys, two holds). Their average price target stands at $15.75, implying over 83% upside potential. Thus, it could be a very interesting example of best stocks to buy.

Coinbase (COIN)

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At the moment, I’m not particularly feeling optimistic about cryptocurrencies. I hope I’m wrong but with so many headwinds – specifically a hawkish monetary policy and rising numbers of layoffs – risk-on asset categories seem truly risky. That said, if the market does collapse, I might be interested in acquiring shares of Coinbase (NASDAQ:COIN).

While hardcore blockchain advocates wax poetic about keeping their blockchain-derived assets in cold storage, here’s the reality. More than likely, privately created cryptos will never replace government-mandated currencies. Further, relatively few businesses in the world accept crypto as payment for their goods and/or services. Therefore, to actualize “paper” gains requires a conversion from crypto to (fiat) currency.

That’s where Coinbase comes in. It’s a well-known platform and therefore enjoys (relatively) high trust. However, the main challenge for COIN stock centers on its dependency on crypto entering a bullish cycle. Once that happens, COIN could genuinely compete as one of the best stocks to buy. Until then, I’d just keep it on your watch list.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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