This year the S&P 500 has suffered a severe crash, wiping out some gains from last year. SPX fell by 5.8% Friday. This means that the index has fallen by 17.5% since its peak this year. The SPX has fallen to its lowest point since May 20,24. This erases trillions in dollars of value.
When you look closely at the S&P 500 constituents, it is clear that they all fell last week. Lamb Weston was the only company to have risen by over 1% in the past week. Dollar General, Molina Healthcare and McKesson Corporation were the other top performers.
Buy the dip in these S&P 500 Index stocks
In the past, every sharp crash of the S&P 500 has coincided with a great time to purchase the index. There is a chance that popular blue-chips will rebound in the next few weeks, even though the decline may last for some time. JPMorgan, Blackrock, Xylem and Berkshire Hathaway are some of the best S&P 500 companies to invest in.
Click here to read about 5 reasons why the S&P and SPY ETFs could plunge in 2025
JPMorgan (JPM)
JPMorgan’s stock price has plummeted in recent months. It went from a year-to date high of $278 down to just $210. The stock of JPMorgan has also fallen, as investors fear that the US could be in a recession by the end of the year.
Jamie Dimon, who is focused on building a strong balance sheet, has made JPMorgan one of the most secure banking brands in the US. CET-1 is 15.7% which is much higher than the US regulatory requirements. It can tolerate a $547 billion loss.
JPMorgan has also been a great buy due to its long history. It’s survived for more than a hundred years and continues to thrive. It has also survived the Dot Com Bubble, Cold War, Pandemic and Global Financial Crisis.
Xylem (XYL)
Xylem stock is also a good investment for the S&P500. Xylem, a leading company in the water sector, manufactures disinfection and pump systems for households, businesses, and utilities. Flygt is one of its top brands, along with Lowara and Wedeco.
Xylem, an industrial firm, manufactures most of its product in Europe, the United States and Asia. Despite the fact that some of Xylem’s products may be subject to tariffs, it is likely the company can weather the storm due to its large market share and brand recognition.
The analysts have a positive outlook for the Xylem share price. They expect it to reach $145 from its current level of $104, up from $104.
Berkshire Hathaway
Berkshire Hathaway’s stock also fell last week. The class A shares of Berkshire Hathaway fell to $740,000 from the highs reached in 2018.
BRK has a large cash reserve and is one of best S&P 500 stock to purchase. Buffett sold billions in stocks over the last few months as a signal that he had predicted the bloodbath.
He now has over $300 billion of cash that he can use to purchase cheap companies, as he did in the past. Berkshire, like the companies on this list, has endured multiple economic crises, and this trend will continue in 2018.
Blackrock (BLK).
Blackrock’s stock has fallen in recent weeks. The stock price fell to $822, its lowest since August 12, on Friday. The stock is now down over 23,7% from the highest point this year. This means that there is a severe bear market.
Blackrock is likely to experience some withdrawals from investors who are reducing their holdings. The reality is, however, that Blackrock has been through other crises before and will survive this one as well. Blackrock’s stock price target is $1150. This represents a significant increase over the $822 it currently trades at.
Buy the top S&P 500 Stocks
As most crash, there are still other S&P 500 top indexes to purchase and hold. Blue-chips like Abbott Laboratories Enterprise Product Partners and NextEra Energy are notable names.
The post Top 4 S&P 500 Index Stocks to Buy the Dip During the Crash may change as the updates unfold.
