Coles shares and 2 other ASX 200 companies to buy in the current market

Could purchasing Newcrest, Xero and Coles shares be the secret to stabilising your portfolio in another share market crash this year?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX 200 shares are under pressure again after a fourth straight day of losses. The S&P/ASX 200 Index (ASX: XJO) is now down 7.2% since last Wednesday's close.

That means there could be some great bargains in the current market. Xero Limited (ASX: XRO), Newcrest Mining Ltd (ASX: NCM) and Coles Group Ltd (ASX: COL) shares are just a few of the top shares that I think can help you prepare in the current market environment.

3 ASX 200 shares to buy in the current market

It's hard to know how to position for a second market crash at the best of times, let alone in the midst of a pandemic.

I think non-cyclical earnings and large-cap shares are the key to weathering any storm. Coles shares could fit this bill.

The Coles share price rocketed higher in February and March when the first coronavirus restrictions kicked in. While I don't think we'll see the same level of panic buying again in 2020, Coles earnings could still be solid.

That's especially the case given times are tough right now and many Aussies are cutting expenses where they can. That could mean less spending at cafes and restaurants and more buying from supermarkets like Coles.

Another ASX 200 share that could be in the buy zone is Newcrest Mining. The Newcrest share price has fallen 1.4% lower in 2020 which is a 13.0% outperformance compared to the ASX 200 benchmark index.

Gold shares tend to do well in a share market crash. Investors flock to the safe-haven asset as a store of value when ASX shares are in freefall.

Other than the gold shares, I think tech shares are promising in 2020. Tech shares have been leading the S&P 500 Index higher in the United States and we've seen similar on the ASX.

That could mean an ASX 200 tech share like Xero Limited (ASX: XRO) is in the buy zone.

Xero's accounting software platform is in high demand right now as businesses look to keep a good handle on their finances.

That could mean Xero is a solid hedge with some upside potential in a share market crash.

Foolish takeaway

No one knows if and when another share market crash might occur. Newcrest, Xero and Coles shares are just a couple of the ASX 200 shares that could help to weather the storm in 2020.

However, panic buying and selling of shares also isn't the answer.

It might be worth sticking to a long-term strategy and riding out the volatility over the coming decades.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 6 March 2025

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Defensive Shares

Gas share price represented by a rising share price chart.
Defensive Shares

Why this ASX 200 share could be a top defensive buy

Here’s why this leading fund manager has identified this ASX 200 share as a top buy.

Read more »

A smiling woman dressed in a raincoat raise her arms as the rain comes down.
Defensive Shares

Why these 2 defensive ASX shares are weathering the tariff storm

These 2 stocks are delivering impressive performance.

Read more »

Health professional working on his laptop.
Defensive Shares

Is CSL the most defensive ASX stock on the market?

With many investors scrambling amidst global uncertainty, is now the time to look to defensive stocks?

Read more »

A woman stacks smooth round stones into a pile by a lake.
Defensive Shares

ASX defensive stocks to buy now for stability

Amid a building trade war, these stocks could provide stability.

Read more »

A person sitting at a desk smiling and looking at a computer.
Defensive Shares

Beyond healthcare, consumer staples and utilities: 2 ASX defensive stocks to consider

Looking for downside protection in this market?

Read more »

two women, one in a white coat and the other in medical protective gear including a hair cover, mask around her neck and a gown, look happily at an X-ray of a person's chest with one giving the thumbs up sign.
Defensive Shares

Is Pro Medicus a defensive ASX stock?

Is this the kind of stock to hold steady in tough times? Here's what you need to know

Read more »

Woman using a pen on a digital stock market chart in an office.
Defensive Shares

Overinvested in Coles shares? Here are two alternative defensive ASX stocks

Should investors add other stocks to their basket?

Read more »

Businessman at the beach building a wall around his sandcastle, signifying protecting his business.
Defensive Shares

3 defensive ETFs to navigate volatility on the ASX

These ETFs can add some stability to any portfolio.

Read more »