Stocks got off to a challenging start to the year, and in late March, both the Dow Jones Industrial Average and the Nasdaq Composite briefly entered correction territory by falling more than 10% from recent highs (they have partially recovered since then). Broader market weakness has hit stocks to start the year, but corrections are a natural part of markets and create opportunities for investors to get into stocks at lower prices.
For smart investors, market corrections give you an opportunity to scoop up shares of high-quality companies with strong cash flows at discounted valuations. If markets were to fall further from here, three no-brainer financial stocks to buy are Berkshire Hathaway(NYSE: BRKA)(NYSE: BRKB), Progressive(NYSE: PGR), and S&P Global(NYSE: SPGI).
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Over decades, legendary investors Warren Buffett and Charlie Munger have built Berkshire Hathaway into a behemoth in insurance, transportation, consumer goods, and energy while also managing its massive stock investment portfolio. This year, Greg Abel took the reins as chief executive officer following Buffett’s retirement.
Berkshire stock is down 11% from its 52-week high, and the company made news last month when it announced it would resume stock buybacks under Abel. The company had stopped purchasing its stock in May 2024, but with shares trading at 1.4 times book value, Abel, with Buffett’s blessing, feels now is a good time to resume purchasing shares.
Berkshire’s widely diversified business provides steady, cash-generating operations that have helped it build its cash stockpile to $373 billion. In addition, it has investments in energy giants Chevron and Occidental, giving it upside in these oil stocks as the Iran conflict rages on. Berkshire Hathaway is a top-notch stock, and if it were to fall further from here, it’s a no-brainer buy for long-term investors.
Progressive is a leading automotive insurer, and its stock has taken a bit of a hit over the past couple of years. The stock climbed to $292 per share in early 2025, but since then, it has declined by over 33%. The company experienced a surge in 2023 and 2024 as premiums grew amid inflationary pressures, but more recently, the insurance market has hardened. In this environment, premium growth slows as competition rises.
The hard market conditions have weighed on Progressive, which has long been a stellar-performing stock. However, the company continues to grow steadily. In February, its premiums in force grew by 10%, while net premiums earned increased by 8%. And the company continues to display stellar underwriting ability, with its combined ratio at 85% in the first two months of the year.
The company offers variable dividends that can be quite large during good years. Last year, it paid out $13.50 per share, yielding roughly 7% based on its current stock price. It’s been tough sledding for Progressive investors over the last year, but with a price-to-earnings ratio of 10, the stock offers investors an excellent opportunity to invest in this insurer at its lowest multiple in four years.
S&P Global is a key player in financial markets, serving as a top credit rating agency in the hard-to-break-into industry. The company has a 50% share of the U.S. credit ratings market, its cash cow, but it is also dependent on corporate and government debt issuance. It has a joint venture with CME Group for S&P Dow Jones Indices, as well as a growing data business with S&P Global Market Intelligence.
The company has taken a hit amid the software sell-off that hit many software and related stocks early this year. Investors have expressed some concern that generative artificial intelligence (AI) could replace traditional data terminals like Capital IQ, which could weigh on S&P Global’s software services business.
That said, the company has its ratings and indexes businesses, which are strong moats and should be largely insulated from AI disruption. The company is also a reliable dividend stock, having raised its payout for 53 consecutive years. The stock is priced at 29 times earnings and 22 times forward earnings, putting it near its lowest multiple in four years. For investors worried about a market crash, S&P Global is another excellent stock to scoop up today.
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Courtney Carlsen has positions in Berkshire Hathaway, Chevron, Occidental Petroleum, Progressive, and S&P Global. The Motley Fool has positions in and recommends Berkshire Hathaway, Chevron, Progressive, and S&P Global. The Motley Fool recommends CME Group and Occidental Petroleum. The Motley Fool has a disclosure policy.
