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History Says a Market Crash Would Be a Buying Opportunity for These 2 Industrial Stocks

2026-10-01 23:30 •Brett Schafer •The Motley Fool Positive Axe Cap view: Selective •Macro•Inflation•Equities•Earnings•Technology•AI•Semiconductors •WM•CP

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When Industrial Stocks Crash, These Names Could Shine

Two non-tech industrial stocks may offer solid buying opportunities if markets tumble.

Industrial stocks linked to AI infrastructure are expensive, but not every sector in this space benefits equally. Waste Management and Canadian Pacific Kansas City stand out because their business models don’t hinge on trendy tech cycles. Waste Management provides steady, inflation-linked cash flows from contracts that hold up even in downturns. Canadian Pacific Kansan City benefits from the North American manufacturing rebound and onshoring, with solid efficiency gains and resilient demand. Both have delivered exceptional long-term returns after past crashes, suggesting they could be reliable buy points if volatility picks up. South African investors should watch USD/ZAR closely here, as a weaker rand would make these dollar-earning businesses even more attractive. The risk is that newer shocks—like rapid regulatory changes or a sharper slowdown in the US economy—could hurt these companies’ growth outlooks more than history suggests. this is just our opinion and not financial advice

How I would invest

Watch for a market pullback to add exposure to global industrial plays indirectly via rand-hedged instruments or forex. Avoid chasing high AI-tech valuations locally; instead, keep rand exposure balanced against the USD for timing entries.

What I would watch
  • Waste Management (WM)
  • Canadian Pacific Kansas City (CP)
  • USD/ZAR
What could go wrong
  • US economic slowdown impacting demand
  • Regulatory shifts in industrial sectors
How strongly I feel

6/10

While industrial stocks are currently trading at premium valuations due to AI infrastructure investments, two non-AI-benefiting industrial stocks—Waste Management and Canadian Pacific Kansas City—are positioned as attractive buying opportunities during a future market downturn. Both have demonstrated strong historical returns post-crash and offer defensive characteristics with steady growth potential.

Our take is based on reporting first published by The Motley Fool.

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