Best Stocks To Buy After The Stock Market Crash

What are the best stocks to buy after the stock market crash? At this point, you need to understand that we are definitely going to go through a correction period in the stock market very soon. For those of you that have been reading my last few articles, you may think that I am a crying fire before the match is even lit. You couldn’t be more wrong though. I look at the stock market as a giant cycle of events. A normal stock market cycle will experience twice the amount of good days as bad. The problem I have seen over the last few years is that we have been experiencing 8 years of gains and not one year of losses. This is a BIG problem and I am prepared for it, as well as my readers. With that being said, there are going to be some huge potential money makers for us in the very near future. Hopefully at this point, you are starting to consider shorting the market.  The idea is to transfer to a long position once the worst of the correction has passed once it happens.  Let’s be realistic with our expectations, you shouldn’t expect the market to continue on earning 30% a year.  It will be due to this correction that will be given a fantastic opportunity to buy some great stocks at much more reasonable prices.  I have written about a few great dividend stocks as well as some general great selections that look even better now.  Almost all stocks are losing some value during this troubling period of time.  Energy stocks are getting crushed and tech stocks aren’t doing much better.  But there are a few stocks out there that will help you continue your profiting ways on the long side once this correction is done.  These are my top 5 best stocks to buy after the stock market crash.

Stock 1:  Unifi Inc. (UFI)

Best Stocks To Buy After The Stock Market CrashAs you know, when I look for one of the best stocks to buy for the long term, I like to stick to stocks that are trading around the 15 level when it comes to their price to earnings ratio.  Unifi is trading at about 10.  This is under what I like to look at, which is fantastic for us.  But, it isn’t this years earnings that spark the love, it is the next two years earnings that allow me to rank this a buy.  This stock is trading at about $22 a share with about a 50% appreciation possible in the next 2 years.  This is the kind of stock that you want to be in before it goes through the roof.

But it isn’t the short term reasons why I like this company.  If we take a look at the 2016 and 2017 expected earnings, you will see great increases.  In 2014, Unifi earned $1.47 a share.  For 2015, they are expected to earn $1.77 a share.  This is a nice increase of about 21% for that 12 month period.  For 2016, Unifi is expected to earn $2.13 a share, and it only gets better for 2017.  This will be another increase of about 21%.  With the stock experiencing a very minor correction in price with the overall market correction, you will be able to snap this stock up and hold on to it through the next 2 years and expect about a 50% gain.  Don’t be surprised to see this stock drop in price another 5% to 10% before this correction is over, offering you some additional gains going forward.  This stock play is simply based on a decent debt load and great earnings growth over the next 2 years.  If we look at forward price to earnings, you will  see that the 2016 ratio will come in at about 9.  This is way below what I like and will give some room to grow.  This is why Unifi Inc. is one of the best stocks to buy after the crash.

Stock 2:  International Business Machines (IBM)

Best Stocks To Buy After The Stock Market CrashThis stock has been crushed during the last few weeks and probably will continue to feel the pain going forward.  This stock is charting the way we want at this time and it is our chance to take advantage of it and it is why it is one of the best stocks to buy right now.  It was trading closer to $174 and is now down $27 to $147  I absolutely love this company for a variety of reasons.  The first reason is that they are trading way below 15 when looking at their price to earnings ratio.  They are currently trading at about 10.  The earnings by 2016 is expected to be $21.35 per share.  This would push the price to earnings ratio down to below 10 at  7!  That tells me we could possibly be looking at gains of about 100% in order to get this stock to par with others in its industry.  The best part of the whole thing is that IBM has about ten billion dollars in cash and short term securities that they can rely on to survive the correction and possibly use for takeovers once other competitors are suffering.  So much upside and limited downside make this stock a no-brainer and one of the top best stocks to buy this week.

Stock 3:  Juniper Networks Inc. (JNPR)

Best Stocks To Buy After The Stock Market CrashThis is another example of a stock being hit way to hard.  If you owned this stock over the last few months, then you absolutely hate it.  But, if you are like me, looking at it as dog that is ready to get up to bark, then you will love it.  Is it a solid value stock?  Yep!  It comes in today getting rocked over the last month by a very large percent.  You can see from the last six months that Juniper was trading at $32 a share and now is below $25 a share.    This is about over a 20% loss in only six months.  You will see that certain sectors will get hit first during corrections and others will lag in their losses.  Juniper is definitely not lagging.  This sets the stage for this company to be one of the first ones to recoup some of these losses going forward.  But what can we expect to earn in the next 24 months?  Juniper Networks is expected to earn approximately $2.05 a share in 2016 and possibly $2.50 according to some analysts.  The $2.05 is the consensus and thus the one I use when trying to forecast future price values.  The forward 2016 price to earnings ratio is about 10.  This gives us an expected return of almost 50% over the next 2 years.  The best part is that it probably is not done getting hit in this correction phase.  My advice would be to dollar cost average this thing over the next 6 months.  Break the buys into 3-6 different occasions to deal with this upcoming correction.  It will give you a great entry point over this troubled timeframe.  This is definitely one of the best stocks to buy right now, bar none.

Stock 4:  Aflac Inc (AFL)

Best Stocks To Buy After The Stock Market CrashWhen I was doing my research, I was slightly surprised to see this stock pop up on my screen of possible buys.  Last I locked at it, Aflac was trading at close to $69 a share.  It is now at $62 a share and a steal at this price.  You can see from its 12 month chart that Aflac has taken a huge hit during its own correction, dropping almost 10%.  Remember that a 10% drop is considered a correction that only happens once every year.  So this is a great time to eye this company up.  On the price to earnings front, they are currently trading at 11.  Looking into the future of 2016, Aflac is expected to earn $6.87 a share.  This will give us a PE of  10.  Not that it is a great increase for us, but the stock is amost trading in the single digits when it comes to the price to earnings ratio.  I would peg a price expectation of 50% over the next 2 years.  This will give us a price of just north of $100 a share.  It really reminds me of Apple back in April of this year.  Everyone sold out and the PE dropped down to similar levels.  I called that one and it panned out and now we have a similar situation here.  Only time will tell, but I like this one going forward, especially since I expect it to fall a bit more before appreciating again.

Stock 5:  Valero Energy Corporation (VLO)

Best Stocks To Buy After The Stock Market CrashWow…talk about saving the best for last.  This is an energy company that has been annihilated over the last few weeks.  Valero has seen its stock price drop from almost $66 a share down to about $73 a share.  This is a loss of about 10% and easily counts as a correction.  The best thing about this company is how much they are earning compared to their share price.  Their current PE is only 10 as of close today.  But let’s take a look at the 2016 expected earnings and come up with an expected earnings of $7.66 a share.  This will give us a super low price to earnings ratio of only a little over 8!  This tells me that this can easily be a stock that doubles in price once oil prices rebound, which we all know they will eventually do.  I have used this same stock selection technique during the trying times of 2007-2008 and it produced quite a few stocks that double, tripled and even one that quadrupled in price.  Always remember that the best time to buy a stock is not when it is at its peak, but when it is in the gutter and nobody wants to pay attention to it.

Conclusions On When To Buy Stocks Going Forward

At this point in the game, you are certainly worried about the overall negativity affecting the stock market and more importantly your portfolios.  Always keep in mind that nobody can tell the future when it comes to stocks.  The best thing you can hope for is to do your due diligence and select solid stocks that have a long history of earnings good profits.  The companies that I have listed up above are 5 such companies.  There are no guarantees that these stocks will rise by any significant amount, but when looking at their competition, I would think that they will have a much better chance of better then average appreciation gains.  It is for this reason that it makes the list of best stocks to buy after the stock market crash.

There are not many times in your investing life where you will come across a timeframe that will allow you to purchase certain securities at rock bottom prices.  I remember the last period back in 2008 and not only did I buy a ton of stock, I leverage the entire account to 2X because of the obvious steals I was getting.  At the time, it was a very harrowing experience.  But now I have the luxury of hindsight and know that I did the right thing.  You have to ask yourself, how low do you think the market will fall based on the technical indicators and fundamentals?  If the market is very close to that point, you may of just found your entry point.  I will suggest this again though, that you should dollar cost average your investments over a 6 month period to deal with the inherent dangers of the market right now.  I would just figure out what a whole position would cost and divide that by 6.  Take that answer and invest it each month into the stocks you are interested in.  After 6 months, you will have full positions in all of these stocks.  The worst case scenario is that the market continues to fall for over 6 months and you now lose a bit more.  The best case scenario is the market drives northward and you collect a decent return and are drinking pina coladas on a warm beach somewhere.

As a final bonus for this article, I decided to throw out a few stocks that are worthy of real consideration.  These companies are all trading at PE’s below 15 and have a decent track record for earning money for their investors.  Call it an early Christmas gift from Santa Moe.  I am going to just list the company and the PE for you to peruse at your own leisure.  Keep in mind that there may be more downtimes before we hit the golden bull run again.  If you are looking for the best stocks to buy, concentrate on the P/E levels and you will be taking a step in the right direction.

Now this next piece is for all those that are looking to get into the stocks below $5,00 a share, better known as penny stocks.  I have made a ton of cash off of these securities and there is one person who leads the way concerning them.  I would like to point you to one of the very few stock newsletters I would ever recommend.  The Penny Stock Prophet is no joke and we have been working with him for years.  Take a minute and read how he turned $1,000 into over a $1,000,000. (Neat story to say the least)

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Feel free to leave a comment down below with a stock you want reviewed and I will give you my personal opinion on it.  Keep in mind I like to invest in value stocks, much like Warren Buffet does.  Buying hype is not a great way to reach the land of financial independence.  Let me know what you think the best stocks to buy right now are in your mind.

Best Stocks To Buy After The Stock Market Crash

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Notice: Any information that is written on this site is for educational purposes only. It should never be considered as financial or investing advice. Anything you read on this site is just informational and that is it. I am no longer a registered financial advisor and licensed by the SEC. I am now just a blogger who enjoys writing about stocks and making money online. You should always seek a professional financial advisor for advice on investing and any stock you are considering. Remember that investing is inherently risky and you could lose all of your money. I am also an affiliate of some of the items discussed on this site. In other words, I may be paid for people buying stuff off of this site and the links on here as well. This is how I am able to keep the site up and running.