Investors were reminded again last week that a stock market crash or correction can occur without warning. But the good news is that every crash in history has turned out to be an opportunity to buy high quality stocks at a discount. This is because the larger market grows in the long run and ultimately puts all the big corrections in the rearview mirror.
That being said, you don’t have to start with a fortune to build game-changing wealth on Wall Street. If you have, for example, $ 1,000 at your disposal that won’t be needed to cover emergencies or pay bills, that’s more than enough to buy the next three explosive stocks in a stock market crash.
While I’m not a big fan of changing your investment game plan due to a short-term fix, it’s pretty obvious that the 2019 coronavirus disease pandemic (COVID-19) is going to push the businesses and consumers online with increased frequency in the coming months and years. This represents a huge opportunity for cybersecurity companies like Okta (NASDAQ: OKTA) who will be responsible for protecting corporate data.
The secret to Okta’s success lies in the company’s wide range of identity verification solutions. Okta’s product portfolio is designed to grow with its customers. This is important because the juiciest margins for Okta can come from existing customers who spend more. In one of the toughest quarters in decades for the U.S. economy, Okta is managing subscription revenue growth of 44%.
Okta will also benefit from identity verification as a basic service. No matter how well or poorly the economy performs, criminals and bots designed to steal corporate data don’t take a day off. This gives Okta the cash flow stability that goes with its gigantic $ 2.5 billion cash stack at the end of July.
Investors should rely on tech stocks like Okta to generate consistent double-digit growth.
Another explosively growing stock that investors can buy with confidence in a market crash is drug developer Alexion Pharmaceuticals (NASDAQ: ALXN).
Alexion stands out from the crowd for one major reason: he’s a developer of drugs for ultra-rare diseases. While there are many risks involved in developing therapies to treat a very small pool of patients, the rewards can be huge with success. Alexion rarely faces competition in the indications he targets, and health insurers offer little perspective on high list prices because there are no other treatment options. This is the perfect formula for success.
Alexion also benefits from its innovation. For more than a decade, he relied on his successful drug Soliris as a driver of profit. However, with growing concerns about exclusivity, Alexion developed Ultomiris as a replacement. Ultomiris should only be administered once every eight weeks, as opposed to every two weeks with Soliris. In the most recent quarter, Alexion reported more than tripling sales of Soliris to $ 289 million, with Ultomiris becoming the new standard of care for patients with paroxysmal nocturnal hemoglobinuria.
Since rare disease patients need their medications regardless of how the US economy performs, Alexion’s cash flow is strong.
When the next stock market crash comes, don’t neglect the chipmaker Broadcom (NASDAQ: AVGO), which is expected to live up to two major catalysts for at least five years.
The hook for investors when it comes to Broadcom is the company’s production of 5G wireless chips and other accessories currently in use in next-gen smartphones. Telecommunications companies are rolling out wireless infrastructure upgrades across the country. This won’t happen overnight, which means Broadcom is expected to experience a steady increase in demand for its smartphone solutions in the years to come. Remember, this is the first significant upgrade in wireless download speeds in a decade, so don’t underestimate the demand from consumers and businesses during this technology upgrade cycle. .
Broadcom will also benefit from the aforementioned push online and in the cloud by businesses. With the traditional work environment disrupted by the COVID-19 pandemic and consumers favoring the online shopping process, the demand for data storage through data centers is expected to continue to increase. As a supplier of connectivity chips used in data centers, Broadcom is expected to experience healthy product growth.
While Broadcom’s sales growth will not bring the jaws down, its scale and improved operational efficiency should allow profit growth to far outpace revenue expansion.