5 Strong Stocks to Purchase During This Market Correction

Key Points

You probably don't think of Amazon as the same firm it once was.
Cybercrime and hacking continue to pose a threat to businesses that, generally speaking, are not yet sufficiently protected.
Salesforce is the market leader in a sector that is expected to grow at a rate of more than 13% per year through 2030.

If you intend to invest in stocks for the long term rather than just to make a quick profit, now is the time to do so. It won't really matter if you didn't start at the very bottom five years ago.

Here are five heavily discounted stocks you can purchase in the midst of a meltdown that has kept reoccurring despite numerous attempts at recovery.

Cardinal Health

Healthcare stock investing might be intimidating. While insurers and hospitals are constantly at risk of increasingly onerous regulations, pharmaceutical businesses are always just one competitor's drug development away from catastrophe.

However, there is a small portion of this industry that is so clear-cut and uncomplicated that it avoids these kinds of dangers. That is, providing the consumables that clinics and hospitals always require more of.

Enter Cardinal Health (CAH 1.59%).

The company offers products like bandages, syringes, rubber gloves, and even some medications. However, Cardinal Health also provides more sophisticated products, including radiopharmaceuticals (used in medical imaging), diagnostic kits, and the tools required for this kind of work. There's a strong possibility Cardinal sells it if you discover it at a medical facility.

This company's "value add" is its capacity to act as a one-stop shop for a sector that needs to focus more on patients and less on managing a variety of suppliers. The COVID-19 pandemic's entrance into the United States briefly destroyed supply chains in the second quarter of 2020, but otherwise Cardinal Health has been able to raise its top line every quarter for the preceding eight years.

Salesforce

Salesforce (CRM, 1.92%) was undoubtedly the first company to use cloud computing. It started providing web-based access to client data in 1999, before the term "cloud" started to be used frequently to describe remote connectivity to a network.

The product has undoubtedly changed since then. Users could only find and update the most fundamental details on a client or sales prospect using a web browser in 1999. The platform now enables e-commerce operations, interfaces with third-party collaboration services, and offers comprehensive data to data-analytics teams. At the beginning of June, Salesforce even launched a method for its merchant clients to communicate with TikTok users. This company's top line is still anticipated to grow by 20 percent this year and by almost another 18 percent the following year thanks to this kind of innovation.

However, there is still a ton of possibility for expansion beyond that. According to Precedence Research, the market for customer relationship management software will grow at a compound annual rate of more than 13% until 2030. Salesforce is well-positioned to take home at least a fair piece of that market expansion as the leader in the sector.

Palo Alto Networks

Digital data breaches are still on the rise, but they have been overshadowed by coverage of more urgent issues like inflation that is out of control, the midterm elections, and Russia's invasion of Ukraine. The Identity Theft Resource Center notes that following a record-breaking number of successful "hacks" in 2021, data breaches increased by 14% from Q1 2021's total during the first quarter of 2022. The organization's president and CEO, Eva Velasquez, came to the following conclusion: "Data compromises will continue to rise in 2022, as evidenced by the fact that the number of breach events in Q1 marks a double-digit increase over the same time last year."

Make connections. The world is still not protecting its increasingly interconnected networks enough.

To the rescue: Palo Alto Networks (PANW 2.90%) Although there are several publicly traded cybersecurity stocks, this one is at least one of the best. That is as a result of its extensive offerings. Its capabilities include cloud and edge computing, secure remote employee connectivity, threat assessment, and response, making it a one-stop shop for businesses in need of greater digital security.

At least, that is what analysts' predictions imply. They forecast top-line growth of 29% this year and 22% next year, as well as per-share earnings growth of 21% and 24% for the same two years, respectively.

Lam Research

There is no disputing that Lam Research (LRCX-7.35%) shares have been affected by a sell-off that is bad for the technology sector and downright savage for names in the semiconductor industry given their 40% decline just since the end of last year. However, it's possible that investors are misinterpreting Lam Research's position in the market.

To think that Lam is untouched by the current semiconductor scarcity would be foolish. While it only produces the materials and tools that enable more well-known chip businesses like Intel and Taiwan Semiconductor to produce goods for end consumers, the majority of chipmakers are reducing output because of a shortage of the components required to construct an entire final product.

But Lam is still required by the sector, possibly much more so than usual at the moment. Not everyone on the globe is in a rush to buy additional semiconductors and computer chips. Chipmakers are also vying for additional capacity to produce them in the future, even if that means constructing their own brand-new factories. If and when this demand ever decreases, it is impossible to predict when.

The dynamic works perfectly with the situation Lam Research is in. One example of the hardware that chip foundries need in order to make computer chips is the company's atomic layering, plasma cleaning, and ion etching tools. That won't change at all.

Amazon

The last stock on your list of high-conviction investments to make while the market is experiencing a correction is Amazon (AMZN 3.15 percent). This stock has really contributed to the current correction, plummeting 35% so far this year.

According to e-commerce market research firm Pymnts, Amazon is the king of e-commerce and currently generates more than half of all online retail sales in the United States. Nobody even comes close to competing.

However, the company's e-commerce division wasn't even profitable last quarter due to extremely high operational costs, so e-commerce dominance isn't the reason you should feel confident about buying the stock at this significant discount. It might be more advisable to start thinking of Amazon as a corporation that provides cloud computing and advertising services in addition to online product sales.

Amazon Web Services accounted for three-fourths of the company's operational profitability in 2021, but less than one-sixth of its sales (before inflation blossomed into a full-blown cost issue). Amazon Web Services' operating income increased by 56% in the first quarter of this year, continuing a long-term upward trend. In addition, Amazon officially revealed how much money it makes from advertising, estimating $31.2 billion in sales for the previous year.

These two rapidly expanding businesses are also far more profitable for the corporation than ever selling goods and services, laying the groundwork for a promising future that most investors could not fully anticipate.