Stock Market Sell-Off: 5 Magnificent Stocks I Already Own That I'm Waiting Patiently to Add To

Market Overview - The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have experienced sell-offs of 7.2%, 9.3%, and 13.1% respectively over three weeks [1] - Current stock market valuations are significantly above historical norms, with the S&P 500's Shiller P/E Ratio at its third-highest premium since January 1871 [2] Investment Opportunities - Companies with strong fundamentals are being targeted for additional investments during the market downturn [3] - The focus is on existing holdings, with specific stocks identified for potential purchase [4] Sirius XM Holdings - Sirius XM Holdings is noted for its low valuation amidst a high-priced market, with a forward P/E ratio of 7 and a dividend yield nearing 5% [5][8] - The company benefits from a legal monopoly in satellite radio, providing it with pricing power [6] - Revenue diversity is a strength, with 76% of net sales from subscription services, leading to more stable cash flow [7] Alphabet - Alphabet is highlighted as the cheapest among the "Magnificent Seven" stocks, with a forward P/E of 16 [9][12] - Google maintains a dominant market share of 89% to 93% in global internet search, ensuring strong ad-pricing power [10] - The Google Cloud segment is expected to grow significantly, aided by AI solutions [11] Pinterest - Pinterest has shown a steady increase in monthly active users, reaching 553 million, which enhances its ad-pricing power [15] - The platform's unique operating model reduces reliance on data-tracking, providing a stable growth trajectory [16] - Current stock valuation is at 14 times forward earnings, with expectations of a price drop to the $25 to$28 range for additional purchases [17] Fiverr International - Fiverr is positioned to benefit from the shift towards remote work, with a focus on larger clients leading to increased annual spend per buyer [19][20] - The stock is currently valued at about 10 times forward earnings, with potential for further price declines [21] PennantPark Floating Rate Capital - PennantPark offers a monthly dividend with a yield exceeding 11%, primarily investing in debt securities [22] - The company benefits from variable interest rates on its debt portfolio, which increases yield during rising rate environments [24] - The stock typically trades close to its book value, which was $11.35 per share as of December 31, 2024, presenting a buying opportunity if shares fall below this value [25]