Investors Eye Two Stocks Amid Potential Market Downturn

Global stock markets have shown resilience in 2025, with major indices such as the FTSE 100 and S&P 500 increasing by 14% since January 1. Despite this growth, rising inflation and signs of economic slowdown are raising concerns among investors. As fiscal challenges mount in Western economies and geopolitical tensions escalate in Europe and the Middle East, the prospect of a stock market crash cannot be dismissed.

While a market crash is not guaranteed, experts advise reviewing investment portfolios for risk and preparing a list of potential stocks to purchase should share prices decline. Price corrections can present lucrative opportunities to acquire quality companies at discounted rates. Here are two stocks that could be considered for investment if market conditions worsen.

AG Barr: A Strong Brand in Soft Drinks

Shares of AG Barr (LSE:BAG) have increased by 10% year-to-date, though they currently trade at a forward price-to-earnings (P/E) ratio of 16.1. This figure exceeds the average P/E ratio of approximately 13 for the broader FTSE 250 index, suggesting a premium that may not warrant immediate investment.

AG Barr is known for producing some of the UK’s most beloved soft drinks, including Irn Bru and Rubicon. The company has demonstrated strong brand loyalty, which helps maintain demand even during economic downturns. Recent financial results indicate a 3.1% increase in revenues for the six months ending July, despite ongoing pressures on consumer spending.

While AG Barr shows promise as a defensive stock, there are concerns regarding its growth potential in comparison to larger rivals like Coca-Cola. The lack of a substantial international presence raises questions about AG Barr’s ability to capture market share globally. Consequently, for now, some investors may prefer to wait before taking a position in this stock.

Clarkson: Navigating Economic Headwinds

In contrast, shares of Clarkson (LSE:CKN) have declined by 7% since the beginning of 2025. The shipbroker has faced significant challenges due to trade tariffs and increasing regional conflicts, which have negatively impacted the shipping industry. This decline has garnered attention, although potential investors remain cautious, as Clarkson’s forward P/E ratio stands at 17.3, which many consider too high given the current economic climate.

Despite these setbacks, Clarkson holds a strong position as the world’s largest shipbroker and is well-positioned to benefit from recovering trade flows when global economic conditions improve. Additionally, a shortage of new shipping supply in recent years is expected to boost freight rates during a recovery, potentially enhancing Clarkson’s profitability.

The company is also poised to take advantage of the rapid transition to renewable energy, which is stimulating demand for liquefied natural gas (LNG) carriers and vessels supporting offshore wind farms. This shift presents significant long-term earnings opportunities for Clarkson.

Investors may want to monitor these two stocks closely, particularly in the context of market volatility. The potential for a stock market downturn necessitates a strategic approach to portfolio management, and both AG Barr and Clarkson could play vital roles in a diversified investment strategy.

As always, it is crucial for investors to conduct thorough research and consider their financial situations before making investment decisions.