The S&P 500 index has crashed hard this year, erasing some of the gains made last year. The SPX crashed by 5.8% on Friday, meaning that it has crashed by over 17.5% from its highest level this year. It has dropped to its lowest level since May 2024, erasing trillions of dollars in value.
A closer look at the S&P 500 index constituents shows that most of them tumbled last week. Only 15 companies rose by more than 1% during the week, with Lamb Weston, Molina Healthcare, Dollar General, and McKesson Corporation being the top leaders.
Top S&P 500 index stocks to buy the dip
Historically, all sharp crashes of the S&P 500 index has been a good period to buy the dip. While the drop may continue for a while, there are chances that some popular blue-chip stocks will bounce back in the coming weeks. Some of the top S&P 500 stocks to buy are JPMorgan (JPM), Blackrock (BLK), Xylem (XYL), and Berkshire Hathaway (BRK).
Read more: 5 reasons the S&P 500 and the SPY ETF could dive in 2025
JPMorgan (JPM)
JPMorgan stock has crashed in the past few months, moving from the year-to-date high of $278 to $210. Like other banks, the stock has plunged as investors worry that the US may sink to a recession this year.
The reality, however, is that JPMorgan is one of the safest banking franchises in the US, helped by Jamie Dimon’s focus on creating a fortress balance sheet. It has a CET-1 ratio of 15.7%, much higher than what US regulations require. This figure means that it can absorb a loss of $547 billion.
JPMorgan is also a good buy because of its history, where it has survived and thrived for over a century. In this, it has survived the dot com bubble, the Great Depression, the Cold War, the pandemic, and the Global Financial Crisis (GFC).
Xylem (XYL)
Xylem is another S&P 500 stock to buy the dip in. Xylem is a top company in the water industry, where it manufactures pumps and disinfection systems that are used by households, companies, and utilities. Its top brands are Flygt, Goulds, Lowara, and Wedeco.
Xylem is an industrial company that makes most of its products in the United States, Europe, and in Asia. While some of its products will face tariffs, the company will likely weather the storm because of its strong market share and its brand awareness.
Analysts have a bullish outlook of the Xylem stock price, with a target of $145, up from the current $104.
Berkshire Hathaway (BRK)
Warren Buffett’s Berkshire Hathaway stock price also crashed last week. Its class A shares dropped to $740,000, down from the year-to-date high of $807,220.
BRK is one of the best S&P 500 stocks to buy because of its business and its large cash balance. Buffett has sold stocks worth billions of dollars in the past few months, a sign that he predicted the ongoing bloodbath.
This has left him with over $300 billion in cash, which he may use to buy cheap companies as he has done in the past. Like the other companies in this list, Berkshire has survived multiple economic crises in the past, a trend that will continue this year.
Blackrock (BLK)
Blackrock stock price has also crashed in the past few weeks. It tumbled to a low of $822 on Friday, the lowest level since August 12. It is down by over 23.7% from its highest level this year, meaning that it is in a deep bear market.
Blackrock will likely suffer some outflows as some investors exit their positions. However, the reality is that the company has survived other crises in the past, and will do so this year. Analysts have a Blackrock stock target of $1,150, a big increase from the current $822.
Other top S&P 500 stocks to buy
There are other top S&P 500 index to buy and hold as most of them crashes. Notable names are companies are blue-chip companies like Abbott Laboratories, Enterprise Product Partners, and NextEra Energy.
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