Worried About a Market Crash? These 3 Stocks Beat the S&P 500 in 2008 and 2022

The stock market may be on borrowed time these days. It's been doing well, perhaps too well, given the state of the economy. Many people are struggling due to inflation and cutting back on expenses. Although the S&P 500 reaching record levels this year may indicate otherwise, there are plenty of reasons investors may want to think twice about simply buying into the rally these days.

Getting out of the market, however, isn't necessarily the best option for risk-averse investors. There are stocks that may be safe investment options, even if the market does end up crashing in the near future. Three stocks that did well during the last two big crashes in 2008 and 2022 include Walmart (NASDAQ:WMT), McDonald's (NYSE:MCD), and Gilead Sciences (NASDAQ:GILD). Here's how well they did back then, and why they might be safe-haven investments to hang on to right now.

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Walmart

Walmart is the go-to retailer for many consumers. Whether it's loading up on day-to-day essentials such as groceries or making large discretionary purchases, it has just about everything consumers need. Thus, it's normally going to benefit from a great deal of consistent foot traffic and demand.

In 2022, when the S&P 500 declined by more than 19%, Walmart generated total returns (including dividends) that were only slightly negative, but fairly close to 0%. Not a great return, but also not horrific, either. And in 2008, in the midst of the Great Recession, its total returns were up around 20%. That's incredibly impressive given that the S&P 500 declined by 38% that year.

Walmart makes for a solid long-term investment to hang on to. While it is a bit expensive these days, trading at more than 40 times earnings, it can provide long-term stability for investors.

McDonald's

McDonald's has been another resilient stock to own amid turmoil. The value it offers consumers makes its fast food restaurants appealing to people who want to dine out without breaking the bank. At the same time, it's been able to raise prices amid inflation while still providing value for consumers and not drastically hurting demand.

During the most recent crash, in 2022, McDonald's stock was up nearly 1% when including its dividend. It performed slightly better than Walmart. In 2008, its total returns were up over 8%, underperforming the big-box retailer but still faring better than the overall market.

McDonald's trades at a reasonable 22 times its trailing earnings right now, and although it's down 11% this year, like Walmart, it can also be a solid buy for long-term stability. At 2.8%, it also offers a great dividend, which is close to three times the S&P 500 average of just 1%.

Gilead Sciences

Healthcare stock Gilead Sciences is another investment that's been rock-solid during times of adversity. The company provides treatments for serious, life-threatening conditions, such as HIV and hepatitis B and C. That means its products can be necessities for certain people.

In 2022, Gilead's stock rose an impressive 24% (when including dividends), as it was the best performer on this list back then. Excitement around Sunlenca, a promising HIV treatment, gave the stock a boost in the latter part of the year, as the drug would obtain approval from regulators in December 2022 as a treatment for people with multidrug-resistant HIV. Back in 2008, the stock delivered total returns of more than 11%, beating the market that year as well.

The nature of Gilead's business makes it an appealing one to invest in, given the ongoing need for its medicines. Today, the stock trades at 15 times its estimated earnings (based on analyst projections) as it continues to be a good value buy. It also offers a decent dividend that yields 2.3%. It's another example of the type of stock that may do well, even if the overall market struggles.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences and Walmart. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.