3 Stocks Built to Survive the Next Tech Crash

Tech stocks are cratering left and right lately. And it's not just one company having a bad quarter. Several of the biggest names in tech have taken serious hits, and the damage is spreading fast across the sector.

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So … does this mean you have to sell everything? No. These 3 stocks that fit the exact profile of what has held up during past crashes … AND they all earn A ratings from our Zen Ratings system … and are therefore strong contenders for your watchlist and possibly even your portfolio. 

Pick #1 — General Dynamics (GD)

General Dynamics is an aerospace and defense company that builds Gulfstream business jets, nuclear-powered submarines, and Abrams tanks.

It earned a spot on this list because defense and aerospace spending runs on government and corporate cycles that have nothing to do with a server budget squeeze in enterprise software.

It has a solid foundation. Earnings came in at $4.3 billion over the trailing year, up over 10% from a year ago, and earnings have grown an average of 67% a year over the last three years. The dividend's been raised consistently for 10 straight years without a single cut.

That kind of track record matters looking ahead because it's not a one-off, it's a pattern of steady execution, and government and corporate defense budgets don't swing on a quarter's worth of bad news the way tech spending just did.

And this track record is also likely related to why Wall Street is so keen on the stock, giving it a consensus Buy recommendation, with several price targets suggesting the stock could see significant upside above where it sits today.

As I noted earlier, all of the stocks I picked rank in the top 5% of our Zen Ratings database and therefore have our highest-possible rating, an A, which amounts to a Strong Buy recommendation.

Looking at the Component Grades, it's in the top 12% of stocks tracked for Sentiment, reflecting that strong analyst consensus.

Better still, it's in the top 10% for Financials, indicating a balance sheet in order.

Best of all, it is in the top 4% for Safety — that last one's the standout, built on years of low volatility and consistent performance, exactly the kind of profile I flagged earlier as one that tends to hold up when growth stocks get crushed.

The one knock here: this isn't a fast grower — its Growth grade lands at just a C. But given today's theme, that is not a huge deterrent.

Between the defense demand, a dividend that just keeps climbing, and analysts pointing meaningfully higher, this is the kind of steady compounder built to be there whether the market's calm or chaotic.

Pick #2 — Align Technology (ALGN)

Next up we move from defense to medical devices.

Align is on a true streak. Earnings have grown nearly 78% a year on average over the last three years, and the company's shown consistent long-term earnings growth over the past decade. That kind of track record matters looking ahead because it's not one good year, it's a pattern, and patterns like that tend to keep compounding rather than reverse overnight.

Yet it's not just past performance. The outlook is strong too. ALGN's earnings are forecast to grow at roughly 33% per year moving forward, far above the industry average which is nestled around 20%.

The strong track record and future potential are a big part of why Wall Street is so bullish.

Analysts carry a Strong Buy recommendation, with half of the 10 covering analysts rating it Strong Buy, and price targets suggesting upside potential of over 30% above where it trades today.

ALGN comes in with an overall Zen Rating of A, Strong Buy.

On the components, it's top 12% of stocks tracked for Financials, meaning a well-run, well-managed business.

Top 8% for Value, meaning the stock's price doesn't look stretched relative to what the company's actually worth.

And just under top 8% for Safety, the low-volatility, financially stable profile I flagged earlier as the kind that tends to hold up when growth stocks get crushed. That makes it the most balanced of today's three picks, without a real weak spot in the mix.

One thing worth flagging: the company's most recent quarter came in softer than the one before it, with earnings down close to 17% quarter over quarter. It's a reminder that even strong long-term stories can have a bumpy quarter here and there.

That kind of short-term noise is exactly why this looks like an opportunity: a well-rounded, fundamentally strong name trading below where analysts think it should be.

If you want to stay one step ahead of the market, then join me LIVE every Monday at 7pm Eastern. That is when I share my updated market outlook and trading plan to outperform.

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Pick #3 — Bristol-Myers Squibb (BMY)

Closing us out is Bristol-Myers Squibb, one of the largest pharmaceutical companies in the world, and the strongest-rated of the three picks today.

One reason why this stock has been a bit under the radar lately is because its patents on two of its big drugs lose exclusivity around 2028.

But the growth portfolio — which excludes those drugs — now accounts for 55% of total revenue, up from 47% last year.

Earnings grew 33% over the past year, and that growth is actually accelerating, meaning last year's pace outran the company's longer-term trend.

On top of that, this stock pays a dividend yielding 4.34%, putting it in the top 25% of all US-listed companies, and it hasn't cut that dividend once in the past 10 years.

That combination matters looking ahead because accelerating earnings paired with a dividend that management keeps raising is usually a sign the business itself is getting healthier, not just riding a good quarter.

That combination is a big part of why Wall Street's consensus here is a Buy, with 11 analysts covering the stock and price targets running as high as $75, more than 26% above where it trades today.

BMY comes in with an overall Zen Rating of A, Strong Buy, narrowly the highest of the three today.

On the components, it's top 7% of stocks tracked for Financials, meaning a well-run, well-managed business.

Top 6% for Safety, the low-volatility, financially stable profile I flagged earlier as the kind that tends to hold up when growth stocks get crushed.

And top 2% for Value, meaning the stock's price looks especially cheap relative to what the company's actually worth. That last one's the standout, and BMY is also the number 1 ranked stock in its entire industry.

One thing worth flagging: the company's long-term earnings growth has trailed the broader drug-manufacturing industry, and there's been some notable insider selling recently.

But with a top 2% Value grade, a dividend that keeps growing, and real upside from where analysts see this stock heading, BMY is built to hold up no matter what the next headline brings.

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