The 1 FTSE 100 stock I’ll be buying in a market crash

There’s a handful of what I believe are really high-quality stocks in the FTSE 100. Unfortunately, it seems as if the rest of the market loves these businesses as well. Most are trading at premium valuations, which I’m not willing to pay.

That’s why I’m waiting for a stock market crash to snap up these market-leaders. And there’s one FTSE 100 stock, in particular, I want to acquire more than any other.

A FTSE 100 stock for the long term 

Here at the Motley Fool, we’re long-term investors. That means we look past short-term headwinds and try to focus on a business’s underlying strengths. This is especially important in times of economic uncertainty as it’s easy to be distracted by doom-monger headlines. 

Companies with substantial competitive advantages tend to achieve the best performances over the long term. They’re also less likely to be disrupted by short-term economic headwinds.

These advantages can come in many forms. A strong brand, sector-leading customer service, high-quality product or just size are all versions of competitive advantages. 

Rightmove (LSE: RMV) has several of these. It’s the most prominent property portal in the country, its brand is well-known, and its product has revolutionised the UK property market. 

Thanks to these advantages, the group’s website is one of the most valuable web properties in the UK. That means customers are willing to pay a premium to list on its site. 

And because the website requires relatively little in the way of capital spending to maintain, the firm’s profit margins are high. Rightmove has reported an average operating profit margin of around 70% for the past five years. According to my research, there are only a handful of other London-listed companies achieving the same level of profitability.

Growth trajectory

Over the past six years, the FTSE 100 stock’s competitive advantages have helped it take over the online real estate market. Earnings per share have grown at a compound annual rate of 15% since 2014. 

I think this trend is highly likely to continue. Rightmove’s size and scale have proved difficult for competitors to conquer. Unless the company makes a significant mistake, I reckon these advantages will remain, allowing a business to maintain its hefty profit margins.

Further, because customers don’t have many other options, Rightmove can increase its prices year after year without worrying about a significant exodus. Once again, I think this advantage puts the FTSE 100 stock in an elite club. 

Those are the reasons why I want to buy shares in Rightmove. Unfortunately, the stock is currently trading at an eye-watering price-to-earnings (P/E) multiple of 54. Thanks to its advantages, I think the company deserves a premium valuation, but that P/E multiple is far too high.

As such, I believe the next stock market crash could offer an excellent opportunity for me to snap up shares in this leading FTSE 100 stock at a discount price. It might be a while before this opportunity arrives but, in my opinion, Rightmove isn’t going anywhere in the meantime.