Trump Stock Market Crash: 3 Surefire Stocks That Are Too Cheap to Pass Up

Market Overview - The stock market has experienced significant declines, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite losing 14.2%, 17.4%, and 22.3% respectively between February 19 and April 4 [2] - The S&P 500 saw a notable drop of over 10% in just two days, marking a rare event in the last four decades, indicating a stock market crash linked to tariff policies [3] Tariff Impact - President Trump announced a series of tariffs aimed at protecting American jobs, including a 10% global tariff and reciprocal tariffs for countries with trade imbalances [4] - Concerns have arisen that these tariffs may lead to higher consumer prices, reduced sales and margins for businesses, and a potential recession in the U.S. economy [5] Investment Opportunities - Despite the market crash, historical trends suggest that such events provide long-term investors with opportunities to acquire shares of strong companies at discounted prices [6] Company Analysis: Walt Disney - Walt Disney has faced challenges, particularly from the COVID-19 pandemic, yet its stock is considered a strong value during the current sell-off [7] - The company excels in storytelling and character development, which gives it a unique market position [8] - Disney has successfully built its direct-to-consumer segment, achieving recurring profitability and increasing its digital subscriber count [9] - The stock's forward P/E ratio of 13.6 is the lowest since 2018, indicating potential upside [10] Company Analysis: PayPal Holdings - PayPal is viewed as a strong investment during the market downturn, maintaining double-digit growth in total payment volume despite competition [11] - The average number of payment transactions per active account has increased significantly, indicating higher engagement [12] - CEO Alex Chriss is focused on expanding merchant acceptance of digital payments and enhancing user value [13] - PayPal repurchased $6 billion of its stock in 2024, which can boost earnings per share, and its forward P/E of just over 10 represents a nearly 50% discount compared to its historical average [14] Company Analysis: Alphabet - Alphabet is highlighted as a top buy during the market crash, with its core business, Google, maintaining a dominant share of global internet search [15][16] - The company is expected to benefit from its investments in artificial intelligence and cloud services, which have higher margins than advertising [17] - Alphabet's forward P/E of around 14 is 37% lower than its five-year average, presenting a compelling value proposition [18]