2 FTSE 100 stocks to buy in a market crash

As the FTSE 100 continues to fall, Charlie Keough looks at two stocks he would add to his portfolio should the index crash.

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The FTSE 100 index fell below the 7,000 mark last week. And the beginning of the week has seen a further 60-point drop. I think the next few weeks could see further falls as investors anxiously expect a crash. But, as it has proved multiple times, the FTSE 100 is capable of bouncing back. As such, I see this as an opportunity to grab some cut-price stocks for my portfolio. Here I take a look at two FTSE 100 stocks that I would capitalise on should the index dip further.

AstraZeneca

Pharmaceuticals giant AstraZeneca (LSE: AZN) was one of the shining lights to come out of the pandemic. Its vaccine development aided the firm in producing a solid set of half-year results. Revenues were up 23% (14% without vaccine sales), and product sales rose 24% for the period compared to the year before. Its rising revenue in emerging markets is a major factor for me. For HY21, sales in these markets rose 21%. The long-term benefit this could have on the AstraZeneca share price makes it a tempting proposition for my portfolio, especially at a potentially slashed price.

What concerns me is the 25% fall in profits reported for Q2 2021. Should this continue, this could have negative implications for AstraZeneca in the future.

BP

Long-established FTSE 100 stock BP (LSE: BP), for me, would also be a good addition. When looking at BP, a few key factors stand out.

Firstly, and as my colleague Rupert Hargreaves analysed in greater depth, the firm is making strides in planning for the future. It has a clear strategy to increase its renewable energy production and has set targets along the way to achieve this. As such, this FTSE 100 stock has loads of potential to rise in price. Trading at an already reasonable 308p, if the price fell further, I would jump at the chance to add BP to my portfolio.

BP also has some solid financials. Not only has it cut its net debt by 20% within a year, but predictions also suggest that it will report a net profit of $10.5bn in 2021. This should lead to a leap in the share price.

However, the inevitable switch from gas and oil to renewable energy could provide a stumbling block for BP. While I think its plan in place is a good one, if things were to go wrong, this could have negative connotations for the firm. For example, if profitability were to be impacted, would BP be able to retain its current size?

Why I’d buy

With that said, I still think these two FTSE 100 stocks would be a great addition to my portfolio. Both have long-term potential as they adapt to new climates. AstraZeneca has benefited from its investment in emerging markets, while BP is making headway in its renewables transition. If both were to fall in price amid a potential crash, I would certainly be keen to buy them.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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