3 magnificent stocks I’d like to buy in the next FTSE 100 crash

At FTSE 100 has dropped around 700 points in recent weeks, but I would call that a flush instead of a complete stock market crash.

We can still crash as BlackRock’s Larry Fink said a “slow down” the crisis spread through the banking sector. If we do, I would benefit by taking these top three stocks at reduced prices and holding them for the long term.

Down Shares are cheaper

The FTSE 100 includes some very good dividend stocks at the moment, and their yields will only rise if share prices fall. As a fund manager, Schroders (LSE: SDR) could be on the front lines of the next big sell-off. If so, it can suddenly look better.

Schroders has had a tough year, its share price down 20% as volatile markets hit assets under management and performance-related charges. Operating profit fell by 14% year-on-year, but was still strong at £723m.

An all-out accident will no doubt cause more damage, and when I will swoop. That would reduce the valuation to 14.9 times earnings and increase the dividend yield. Today, Schroders will pay an income of 4.81% per annum. Accidents may exceed 5%.

If the FTSE 100 crashes at some point, I would also like to buy an equipment rental company The Ashtead Group (LSE: AHT). I’ve been itching to buy this fast growing company for years, but it’s always a bit too expensive.

The US-focused company continues to grow, raising pre-tax profit by 26% to $535m in its latest quarter, with revenue up 21% to £2.4bn. The board now expects full-year results to beat expectations, keeping shares in demand and share prices high.

Buy less, then keep going

Today, Ashtead trades at 19.5 times earnings and yields 2%, about half of the FTSE 100 average. A stock market meltdown can swing these two figures in favor without pressing the underlying case to buy.

Every business faces challenges, in this case “Supply chain constraints, inflation and labor shortages”, in CEO Brendan Horgan’s own words. I still think it looks like a good long-term buy-and-hold. I just want a lower entry point.

I would use the same approach as the consumer credit reporting company Experience (LSE: EXPN). It is widely admired for its deep defensive moat, as new entrants will struggle to match its seemingly limitless pool of data. The company also has a global reach, constantly moving into new markets, but it is expensive.

Experian currently trades at around 25.8 times earnings, while its yield is low at 1.6%. With luck, accidents can make both figures look more attractive, although like equity, there are no guarantees. While many of my favorite FTSE 100 stocks have seen double dips over the past week, Experian is down 5%.

The risk could raise consumer privacy concerns, despite a recent win against the Information Commissioner’s Office over how it handles personal information. I would like to have Experian, but not at the current price and yield. Let’s see if this year’s stock market volatility presents a buying opportunity.