Worried About a Stock Market Crash? These 3 Stocks Beat the S&P 500 by Wide Margins When It Nosedived in 2022, and They Could Do It Again

A big concern for many investors heading into this year was the potential for a market crash. With high valuations and economic uncertainty weighing on the market, the conditions may have appeared to be ripe for a significant downturn, especially given how hot the S&P 500 has been in recent years; it has generated above-average returns since 2023.

While the S&P 500 has been trending upward recently and is up around 2% this year (as of Tuesday's close), there's still the risk that a crash could happen later on, especially if the war in Iran doesn't end soon, as that could impact many industries and result in elevated inflation.

There are ways you can, however, reduce risk in your portfolio, and that's by going with strong businesses with excellent fundamentals. Three stocks that fit that criteria and that outperformed the market during the last big crash are ExxonMobil (NYSE: XOM), Eli Lilly (NYSE: LLY), and Berkshire Hathaway (NYSE: BRKB)(NYSE: BRKA).

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ExxonMobil

Oil and gas giant ExxonMobil can be a safe-haven investment amid market turmoil. Not only does it offer a high dividend that the company has been increasing for decades, but it can also benefit from a surge in oil prices, which is what has been happening this year. Oil prices have climbed to more than $100 per barrel for the first time in years, and unsurprisingly, ExxonMobil's stock has been one of the hottest buys of 2026 -- it's up around 24%.

Oil prices have been falling recently, but there's still a chance they could rise due to the ongoing war in Iran. Even if there is simply a concern about inflation, the stock may be in high demand. That's what happened in 2022, when the S&P 500 crashed by more than 19%, largely due to elevated inflation. Oil prices soared, and ExxonMobil stock surged over 80%. It was a monstrous performance at a time when many stocks were struggling badly.

While that doesn't mean ExxonMobil is due for such a rally anytime there's a crash, it highlights the safety the stock can offer, as it can sometimes veer in a vastly different direction than the overall market. Plus, with an above-average dividend that yields 2.8% (the S&P 500 average is just 1.2%), it can also provide you with some excellent divided income. If you want to hedge against a potential crash, ExxonMobil is a stock you may want to consider adding to your portfolio today.

Eli Lilly

Healthcare giant Eli Lilly is another solid business to invest in if you're worried about the market. With strong fundamentals and robust demand for its GLP-1 drugs, it may be able to thrive even if the overall stock market isn't doing all that well.

Back in 2022, shares of Eli Lilly soared 32% as the business was booming following the approval of its GLP-1 injectable, Mounjaro, a treatment for diabetes. The bullishness around its potential growth was simply too strong to keep the stock down. Recently, the company obtained approval for what could be its next big growth catalyst: a weight-loss pill -- Foundayo.

Eli Lilly's stock is down 14% this year, but strong early results from Foundayo could be just what's needed to give the stock a boost. At 40 times earnings, the stock may not seem terribly cheap, but given its impressive growth potential, a premium may be warranted. Eli Lilly's stock could be overdue for a rally, regardless of what happens with the market as a whole this year.

Berkshire Hathaway

Yet another stock that did well in 2022 was Berkshire Hathaway, which rose by a modest 3%. This isn't a high-powered growth stock or business that'll benefit from rising commodity prices. But given its focus on value investing and a strong track record for carefully selecting which businesses to acquire and invest in, it's the type of stock that can attract investors seeking safety.

Under new CEO Greg Abel, Berkshire may no longer have the same appeal it did under Warren Buffett, but the business remains essentially the same and is governed by the same principles as before. It may take some time for investors to recognize that, and it could eventually lead to a stronger performance for the stock -- it's down around 5% this year.

Amid a market crash, however, investors may still be tempted to load up on Berkshire's stock for its stability. At 0.70, it has a low beta, indicating it doesn't move in unison with the overall market, which is what investors would want if they're worried about where the S&P 500 might be headed. Berkshire's stock may not be a hot buy right now, but that could change if the market takes a turn for the worse this year.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.