Market Correction Presents Investment Opportunities in Nasdaq Stocks

The Nasdaq has enjoyed remarkable growth over the past two years, posting double-digit annual gains. Investors have been optimistic about the possibility of lower interest rates, which could favor high-growth companies. Lower borrowing costs facilitate expansion and enhance customers’ purchasing power, ultimately driving revenue growth. Companies operating in artificial intelligence and quantum computing have received heightened interest from investors.

However, recent days have seen a sharp shift in momentum. The tech-heavy benchmark slipped into correction territory, down more than 10% from its last peak on Thursday of last week. The primary concern among investors revolves around economic factors, particularly following President Trump’s announcement of tariffs on imports from China, Canada, and Mexico. While the Nasdaq has recently moved out of correction territory, closing the week with a decline of less than 10%, many leading Nasdaq stocks continue to languish, potentially presenting attractive buying opportunities for investors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

While the Nasdaq is often associated with technology, it also encompasses growth companies in various other sectors. Today’s market declines create an opportunity to enhance exposure in growth areas beyond just tech. Below are two quality growth stocks to consider purchasing now.

Image source: Getty Images.

1. Intuitive Surgical

Intuitive Surgical (NASDAQ: ISRG) dominates the robotic surgery market with its flagship da Vinci platform, generating billions in annual revenue. The company benefits from a significant competitive advantage. Surgeons typically train with the da Vinci system, prompting them to prefer it over competing platforms. Moreover, healthcare facilities invest over $1 million to acquire a da Vinci system, incentivizing long-term use.

Intuitive Surgical’s revenue model further strengthens its position. Apart from selling or leasing robotic platforms, it generates substantial income through the sale of surgical instruments and accessories. Many of these surgical tools are disposable, which ensures a recurring revenue stream.

Additionally, Intuitive Surgical boasts a strong earnings track record. Recently, the company reported double-digit growth in revenue, installed systems, and procedure volume. Following a drop of over 9% in its stock price last week, shares are currently trading at 64 times future earnings estimates, a decrease from over 75 earlier this year. Although Intuitive may not be the cheapest stock on the market, its industry dominance and competitive advantage justify its price.

2. Costco

One standout feature of Costco (NASDAQ: COST) is its ability to generate the majority of its profits before customers even enter its warehouses. The wholesale club profits significantly from membership sales, a high-margin endeavor due to low operational costs. Costco consistently achieves renewal rates above 90%, which provides visibility for future earnings.

Costco offers two levels of membership: a standard $65 option and a $130 executive option. Executive memberships have seen an increase of over 9% in the latest quarter, now accounting for 47% of total memberships and more than 70% of global sales. This trend indicates potential for future growth.

Costco has shown a history of earnings growth, and improvements in return on invested capital indicate the success of the company’s investment strategies.

COST Net Income (Annual) data by YCharts

While President Trump’s tariffs may exert some pressure on Costco, the potential impact could be limited. Approximately one third of Costco’s U.S. sales derive from imports, with less than half from the affected countries of Canada, China, and Mexico.

Similar to Intuitive Surgical, Costco’s stock—even after an 8% decline last week—is not the cheapest. Currently trading at 53 times future earnings estimates, it’s more affordable than a few weeks ago when it reached nearly 60 times future estimates. Costco’s proven strengths and consistent earnings performance make it a solid investment option. As the market corrects, Costco presents a valuable opportunity to buy and hold for the long term.

Explore this Opportunity for Potentially Lucrative Investments

Have you ever felt like you missed an opportunity to invest in successful stocks? This may be your chance.

Occasionally, our team of analysts issues a strong “Double Down” Stock recommendation for companies they believe are on the verge of significant gains. If you’re concerned about missing your chance to invest, now is the time to consider these opportunities before it’s too late. Here are some compelling numbers:

• Nvidia: If you had invested $1,000 when we issued a double down in 2009, you’d have $292,207!
• Apple: If you had invested $1,000 when we issued a double down in 2008, you’d have $45,326!
• Netflix: If you had invested $1,000 when we issued a double down in 2004, you’d have $480,568!

Currently, we are issuing “Double Down” alerts for three promising companies, and this opportunity may not present itself again soon.

Continue »

*Stock Advisor returns as of March 3, 2025

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Intuitive Surgical. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.