Stock Market Plunge: 5 Unstoppable Stocks for Sale Now and Hold Forever

What a difference a year makes.

Last year, the benchmark S&P 500 retraced by no more than 5%. Meanwhile, in 2022, the S&P 500, iconic Dow Jones Industrial Averageand tech-driven Nasdaq Composite have all entered correction territory with double-digit percentage declines. The latter is nearly 30% since mid-November.

Although the market is not clear about buying ‘investors, emotions, history is quite clear that buying in these big downturns is a smart move. That’s because every bull market rally has been put into the rearview mirror. In other words, bargains abound for patient investors.

Image source: Getty Images.

The recent stock market plunge has quite a few innovative and unstoppable stocks that are on sale. What follows are five of those unstoppable stocks to buy now and (ideally) hold forever.

Intuitive Surgical

Robotic-assisted surgical system developer Intuitive Surgical (ISRG) 0.43%). Shares of the company are 39% below their all-time high, which was hit six months ago.

What makes Intuitive Surgical so special is the company market dominance and operating model. In terms of the former, it has installed 6,920 of its da Vinci surgical systems in hospitals and surgical centers worldwide over the past 20 years. Not only are Intuitive’s competitors even close to this installation, but given the large upfront investment associated with da Vinci systems ($ 0.5 million to $ 2.5 million), time.

As for Intuitive Surgical’s operating model, it is guaranteed to grow operating margins at a faster pace than sales over time. During its early years, the company generated the bulk of its revenue from selling da Vinci systems. Unfortunately, these are intricate and costly systems to build, which means margins associated with their sale are only mediocre. But as many systems have been installed, they have grown into the share of Intuitive’s revenue stream. The margins associated with these categories are significantly higher.

Da Vinci is still just scratching the surface in thoracic, colorectal, and other general soft tissue surgical indications. This gives Intuitive Surgical an incredible long double-digit growth runway.

A person using a banking app on their smartphone.

Image source: US Bank.

US Bancorp

Although bank stocks are not traditionally thought of as “unstoppable,” regional banking giant US Bancorp USB -0.06%) might change your tune.

The biggest knock against bank stocks is that they’re cyclical. This means that when loans and delinquencies and charge-offs increase.

But this is a two-way street. Even though recessions are inevitable, they don’t last very long. By comparison, economic expansions last disproportionately longer than recessions. Buying bank stocks like US Bancorp allows investors to take advantage of these extended periods of economic expansion and win the long-term numbers game.

Promoting digital banking than US Bancorp, the parent of the more familiar US Bank. As of the end of February, 81% of its customers were digitally active, with 65% of all loan sales completed online or via mobile app. The last one is 20 percentage points from the beginning of 2020. Thus, US Bancorp’s digital push is allowing the company to lower its costs and improve its operating efficiency by consolidating branches.

US Bancorp is deeply discounted and ripe for the picking.

A smiling Starbucks barista wearing the company signature green apron.

Image source: Starbucks.

Starbucks

A third discounted but unstoppable stock that investors can buy right now and hold forever is coffee chain Starbucks (SBUX) 2.03%).

Though Starbucks is facing no shortage of headwinds (eg, unionization efforts, soaring coffee prices, and COVID-19 lockdowns closing select stores in China), this is a company that has successfully navigated its way through many recessions and stock market corrections over the years.

Starbucks may have the incredible loyalty of its customers. No amount of inflation or price hikes have scared away the company faithful base (myself included). This should allow Starbucks to outpace even historically high domestic inflation.

To add to this point, the active member Rewards members are themselves – 26.7 million people, as of April 3, 2022. Rewards members are more likely to order ahead and keep their payment info stored on their smartphones. In other words, they’re helping Starbucks’ stores become more efficient by moving lines along faster.

The innovation company can’t be overlooked, either. Promoting healthier food options and redesigning the drive-thru ordering boards to suggest high-margin food and drink pairings should lead to venture-sized long-term returns for shareholders.

Warren Buffett at his company annual shareholder meeting.

Image source: The Motley Fool.

Berkshire Hathaway

Look up the dictionary definition of “unstoppable,” and there’s a chance you might find a picture of Berkshire Hathaway (BRK.A 0.10%)(BRK.B -0.03%) CEO Warren Buffett. Since becoming Berkshire’s CEO in 1965, Buffett has owned its Class A shares (BRK.A) to an average annual return of 20.1%! Put another way, investors have doubled their money, on average, every 3.6 years for the past 57 years.

One of the keys to Buffett’s ongoing success is its focus on investing in and acquiring cyclical businesses. As noted, periods of economic expansion vastly outpace downturns in length. Buffett has loaded Berkshire Hathaway’s portfolio with businesses that can thrive from the natural expansion of the US and global economy.

The Oracle of Omaha’s love of dividend stocks has played a key role in Berkshire’s success as well. Companies that pay a regular dividend are usually profitable, time-tested, and have transparent growth outlooks. In short, they’re just the kind of businesses we’d expect to increase in value over time.

Based on recent investments, such as oil giant Chevronwhich has a $ 5 billion annual payout, Berkshire Hathaway looks over the next 12 months.

Riding Buffett’s coattails during pullbacks is a moneymaking decision.

A person typing on a laptop inside a cafe.

Image source: Getty Images.

Meta Platforms

Last but not least, there’s unstoppable FAANG stock Meta Platforms (FB 1.18%)which is trading at its cheapest valuation since becoming a public company in 2012.

Like Starbucks, Meta has a laundry list of near-term challenges, including AppleThe US will enter a recession. However, none of these headwinds alters its strategy or hinders its double-digit growth potential.

Meta’s competitive edge is readily apparent when examining its social media assets and active users. Facebook, Instagram, WhatsApp, and Facebook Messenger, are consistently among the most-downloaded social sites each year. Further, Meta ended March with 3.64 billion monthly active users across its family of apps. This is exactly why advertisers will pay a premium to reach these users.

Something often overlooked with Meta is that the company hasn’t even meaningfully monetized all of its core assets. Virtually all its advertising revenue derives from Facebook and Instagram. Mark Zuckerberg pulls the lever on monetizing Facebook Messenger and WhatsApp, the growth company and operating cash flow can kick into another gear.

Given Meta’s incredible operating cash flow and its aggressive investments in the metaverse, a forward-year price-to-earnings ratio of 14 makes it too enticing for buy-and-hold-forever investors to pass up.

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