Back in 2020, the U.S. economy took a sharp downturn as the COVID-19 pandemic spread rapidly. This sudden shock led to what many called the “Great Lockdown.” During that time, the Federal Reserve stepped in by raising interest rates and keeping them higher than expected—even into 2023—warning that another recession could be coming. But by November 2024, the Fed changed its tone slightly, saying that “recent indicators suggest that economic activity has continued to expand at a solid pace.” Although the overall mood remained cautious, it was a sign that things might be stabilizing.
In the first quarter of 2020, the market took a beating. Out of all the stocks in the S&P 500, only 32—just 6%—actually went up in value. Despite the chaos, these stocks showed us something valuable: certain types of businesses tend to do better during tough times.
Top 10 S&P 500 Stocks During Q1 2020
Here are the 10 best-performing S&P 500 stocks in Q1 2020:
| Company | Total Return (Q1 2020) | Industry |
|---|---|---|
| Regeneron Pharmaceuticals (REGN) | +30.04% | Health Care |
| Citrix Systems (CTXS) | +28.02% | Information Technology |
| NortonLifeLock (NLOK) | +25.38% | Information Technology |
| Digital Realty Trust (DLR) | +17.02% | Real Estate |
| Gilead Sciences (GILD) | +16.19% | Health Care |
| Netflix (NFLX) | +16.05% | Communication Services |
| Clorox (CLX) | +13.60% | Consumer Staples |
| SBA Communications (SBAC) | +12.22% | Real Estate |
| MSCI Inc. (MSCI) | +12.16% | Financials |
| NVIDIA (NVDA) | +12.10% | Information Technology |
Also Read: What Is the 50/30/20 Rule and Does It Still Work?
Why These Stocks Did Well
Healthcare
Regeneron topped the list thanks to its work on a COVID-19 treatment, much like Gilead Sciences. In general, healthcare stocks tend to hold up well during downturns. That’s because people don’t stop needing medical care, even when money is tight. This demand is known as “price inelasticity.”
But not all healthcare companies are safe bets. The ones with high debt and low cash flow are more vulnerable. So, it’s usually smarter to invest in established healthcare companies with strong balance sheets rather than riskier startups.
Information Technology
Tech was the most dominant sector on the list, with Citrix, NortonLifeLock, and NVIDIA all posting solid gains. These companies benefited directly from lockdown life—remote work, cybersecurity, and at-home entertainment.
Even though tech is often seen as a cyclical industry, some companies within the sector can be surprisingly resilient during downturns, especially if their products or services are in high demand when people are stuck at home.
Real Estate
It might sound strange, but two real estate companies—Digital Realty and SBA Communications—did well. These aren’t your typical landlords. They own data centers and cell towers, which became essential as remote work and 5G technology surged.
Most real estate investments struggled during the recession, but these companies were exceptions. Generally, real estate is considered cyclical, but certain types—like those tied to infrastructure or essential services—can be more stable.
Communication Services
This sector includes everything from phone and internet companies to streaming services and video games. Netflix was a big winner during the lockdown because people were binge-watching shows at home. Even though streaming is a “nice-to-have” for some, Netflix proved it can be a strong performer during uncertain times.
Consumer Staples
Clorox saw a boost in sales as people stocked up on cleaning supplies to protect against the virus. And it wasn’t alone—other grocery and household brands like Kroger, General Mills, Costco, and Colgate also did well.
Consumer staples usually perform better during recessions because they provide essentials like food, soap, and toothpaste—things people continue to buy even when money is tight.
Also Read: What Are the Biggest Mistakes New Investors Make?
Not All Recessions Are Alike
It’s important to remember that no two recessions are the same. They can be triggered by different events, and each one affects industries in different ways. The 2020 recession was especially unique because of the global pandemic and lockdown. The companies that succeeded weren’t just strong—they were in the right place at the right time.
That said, industries that meet basic human needs—like utilities, healthcare, consumer staples, and sometimes technology—tend to be more resilient during tough economic times. However, performance still depends on factors like market demand, financial stability, and government policies.