Five Stocks to Buy in the 2026 Crash — From Datadog to NextEra, Offense Meets Defense

When a portfolio drops double digits in a single month, the choice comes down to two options: sell in fear, or buy with a plan.

Sitting on cash during a correction feels safe, but historically it has been the worst strategy. The real question is not whether to buy but what to buy. A portfolio needs both defensive stocks that hold up during the decline and growth names that explode when the rebound arrives.

Here are five stocks being added right now — a combination that covers both offense and defense.

1. Datadog (DDOG) — Down 43%, the Next Palantir at a Quarter of the Price

Down 43% from its November peak, Datadog was among the hardest hit in the software selloff.

Yet Datadog is better positioned for the AI era than most software companies. Its platform lets enterprise customers manage data across software, security, and operations — a business remarkably similar to Palantir. The key difference is the pricing model.

Datadog charges on usage. Whether an AI agent processes the data or a human does, the bill runs on consumption. In an era where per-seat pricing models are breaking down, this structure actually benefits from AI adoption.

Critics have pointed to Datadog's lack of AI capabilities. The February partnership with Sakana AI addressed that directly. With AI-powered data services now becoming a reality, the case for revaluation opens up — especially at a price-to-sales ratio one-quarter of Palantir's.

A covered call strategy can add downside protection here. Selling the October $125 strike call option collects approximately $16.95 per share in premium — a 15% cash return on the stock immediately. That lowers the effective cost basis from $114 to $97 per share. If the stock rallies past $125 by October, the return comes to 28%. If it falls further, losses do not begin until below $97.

2. Broadcom (AVGO) — the $100 Billion AI Chip Challenger

Down 27% from its December high, Broadcom remains the strongest candidate to challenge Nvidia in the AI chip race.

CEO Hock Tan laid out a target of $100 billion in AI chip revenue on the recent earnings call. From $20 billion in chip sales last year to $100 billion — that is exponential growth by any definition. The company led the development of Google's TPU chips and expects to ship massive volumes to both OpenAI and Anthropic over the next year.

The Iran situation may intensify the selloff further, but the structural demand for AI chips is progressing regardless of geopolitics. Dollar-cost averaging on pullbacks is the right approach here.

3. Chevron (CVX) — Turning the Iran Premium into Portfolio Returns

The energy sector posted an 11% gain over the past month, the best performance across all sectors. Chevron sits at the center of that move, up 13% over the same period.

Chevron is a fully integrated oil company spanning exploration, refining, and gas distribution. Scale is its competitive advantage. It pays a 3.3% annual dividend while capturing direct upside from rising oil prices.

As long as Iran tensions persist, energy stocks serve as a portfolio hedge — rising when other holdings fall.

4. Verizon (VZ) — the Service Nobody Cancels in a Recession

The return over the past month was just 0.3%. Unremarkable.

That is precisely the point. Verizon functions as a shield within a portfolio. It pays a 5.6% annual dividend, and consumers do not cancel cell service because of an economic downturn. Revenue is nearly immune to the business cycle.

Even if the market drops another 15 to 20%, Verizon's dividend keeps arriving. That cash flow can fund additional purchases of cheaper growth stocks.

5. NextEra Energy (NEE) — a Utility with a Nuclear Growth Engine

Down just 2.5% over the past month, NextEra has held up well while the broader market shook.

The 2.7% dividend yield reflects the defensive nature of utilities — people use electricity regardless of market conditions. But NextEra adds a growth dimension through its nuclear generation capacity. AI datacenter power demand is driving a renewed focus on nuclear energy, making it a core earnings driver for the years ahead.

It is one of the rare utility stocks offering both defense and growth.

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The common thread across these five names is clear. Datadog and Broadcom provide explosive upside when the rebound comes. Chevron converts the Iran premium into direct returns. Verizon and NextEra defend the portfolio through dividends. Combining offense and defense is how to navigate a declining market.