What are some of the stocks that went up during the 2008 crash? The Great Recession that occurred globally caused untold financial losses, crippling the global economy and leading to the fall of major banks in the world and the United States. Millions of people ended up losing their life savings and also losing their jobs as businesses started folding one after another. It is said to be the most devastating recession suffered by the world since the infamous Great Depression that occurred in the 1930s. The S&P 500 index actually lost 38.5% of its value in 2008 alone, the greatest fall since the Great Depression in 1931. While the effects of the recession were on a global level, it was perhaps more significant in the United States, where it originated before going on to affect Europe and the world in general. One country in particular suffered greatly but doesn’t get as much attention; the said country was Iceland.
However, while the situation was overwhelmingly gloom and doom, some businesses actually flourished because of the unique circumstances and the opportunities such circumstances afforded to them. If you want to learn more about these businesses, you should consider visiting 15 business and industries that make money during recession. For example, the fast food industry grew significantly in popularity during the 2008 recession, as it was cheap and people couldn’t afford anything else. While this sounds really depressing, and it is, it did provide an opportunity for the industry to grow, which is why some companies did well during the recession.
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Now to focus on the best performing stocks after 2008 crash. The biggest gainers in the 2008 market crash actually had some things in common. One of the most important things was that several of these stocks were considered to be ‘defensive’ stocks, which alludes to stock which are generally considered to not be risky. At a time when the global market was falling, investors panicked and put their money in these stocks to avoid losing everything. However, while that may be a contributing factor, the best performing stocks 2009 all had high Return on Invested Capital, which was their saving grace. Of course, the fact that these stocks performed well in the 2008 crash does not automatically imply that they will be recession proof in the future as well.
We have determined 10 stocks that went up during the 2008 crash, based on the data available for stock prices during the year. Each of these stocks had a higher share price in March 2009 when compared to September 2008. However, it is important to note that these are not the only stocks which gained in value during the 2008 recession; these are just the most interesting ones. Let’s take a look at these miraculous stocks, which earned their investors double digits returns when the world around them was collapsing:
10. Allegiant Travel Company (NASDAQ:ALGT)
When you think of a company which would grow despite a major recession, a travel company would not be your first thought. After all, who would consider travelling at a time when disposable income was but a distant dream. But Allegiant is a budget airline, and due to oil prices falling during the recession, they were actually able to cut their costs while maintaining flights which were at least 90% full.
9. Career Education Corporation (NASDAQ:CECO)
A dark entry perhaps in this list, Career Education Corporation was able to take advantage of the recession by offering education as a surety for jobs in uncertain times. People forked out tens of thousands of dollars on degrees in the hopes that they would guarantee them a job, despite the recession, which certainly shows where the US lacks when compared to other developed nations where for-profit schools are unfathomable.
8. Coca-Cola Consolidated Inc. (NASDAQ:COKE)
Despite the recession, Coke sales never dipped and their volume based business continued to grow, which is why many analysts have labeled Coke as a recession proof stock.
7. Lincoln Education Services Corporation (NASDAQ: LINC)
Lincoln is evidence that the earlier entry of Career Education Corporation was the rule, rather than exception to the fact that for profit educational institutions tend to do well in a recession, because of the fear inculcated in the masses that they’ll only be able to get jobs if they possess a degree.
6. Monro, Inc (NASDAQ: MNRO)
Another industry which made great strides during the 2008 recession was the automotive repair parts industry. As going to the repair shop became more expensive for the general population, they started preferring carrying out their own repairs, which in turn resulted in a boom for companies which sold repair parts, a boom which Monro was able to take full advantage.
5. Nektar Therapeutics (NASDAQ: NKTR)
The biopharmaceutical industry is as inelastic as it gets, as everyone needs life saving drugs no matter what the global economy looks like. This explains why Nektar was able to gain in value, even as the world was in freefall around it.
4. AutoZone Inc. (NYSE:AZO)
Another company which provides automotive replacement parts, AutoZone’s value grew for the same reason Monro’s did; people started preferring repairing their own cars instead of taking them to expensive repair shops.
3. Gold Fields Limited (NYSE:GFI)
Listed on the South Africa stock exchange, Gold Fields Limited had a very good performance during the 2008 recession, as did other gold mining companies, due to people taking out their cash and investing it in gold to avoid any losses.
2. Sturm, Ruger & Company, Inc. (NYSE:RGR)
While companies were folding over like cards during the recession, Sturm, Ruger & Company was quietly becoming America’s largest firearm manufacturer in 2008, a title it maintained till 2011. This growth allowed it to gain in value even in the worst economic times.
1. Netflix (NASDAQ:NFLX)
Topping the list of 10 stocks that went up during the 2008 crash is a company everyone is familiar with in 2019. You may be surprised to hear that it existed over a decade ago, and while it was certainly not the giant behemoth it is today, it still had a strong presence and was one of the final nails in Blockbuster’s coffin. Forbes did well to point out the potential of investing in Netflix, as well as the fact that it was presenting a decent return in a time when losses were the norm.
