The S&P 500 Is in Correction Territory: 4 Surefire Stocks to Buy Right Now

Core Viewpoint - The S&P 500 has entered correction territory, dropping 10.1% from its all-time high, presenting potential investment opportunities in quality stocks during this downturn [1][2]. Group 1: Market Overview - The S&P 500 index, consisting of 500 influential U.S. companies, has seen a decline of 10.1% since its peak on February 19 [1]. - Current market pressures are attributed to uncertainties surrounding President Trump's tariff policies and the historically high valuations of the stock market [2]. - Historically, corrections in the S&P 500 are viewed as ideal opportunities for long-term investors, with major indexes expected to rise over a 20-year horizon [3]. Group 2: Investment Opportunities NextEra Energy - NextEra Energy is highlighted as a strong investment choice, being the largest electric utility in the U.S. by market cap [5]. - The company benefits from consistent demand for electricity and operates in a monopolistic environment, ensuring stable cash flow [6][7]. - Approximately 50% of NextEra's 72 gigawatts of capacity comes from renewable energy, contributing to a 10% compound annual earnings growth rate over the past decade [8]. - The forward P/E ratio of NextEra Energy is 18, which is a 26% discount compared to its average over the last five years [9]. Johnson & Johnson - Johnson & Johnson is recommended as a defensive stock, having grown its adjusted operating earnings for 35 consecutive years prior to the pandemic [10]. - The company has shifted focus towards novel-drug development, maintaining high margins and strong pricing power [12]. - Johnson & Johnson's shares are available at less than 15 times forecast earnings for 2026, which is 8% below its five-year average [14]. AutoZone - AutoZone is positioned well as the average age of vehicles on U.S. roads has increased to 12.6 years, leading to higher demand for auto parts [16]. - The company is expanding its network with approximately 200 mega hubs to improve accessibility for customers [17]. - AutoZone has executed a significant share repurchase program, retiring approximately 16.75 million shares for $37.8 billion, reducing its outstanding share count by 89% [18]. Alphabet - Alphabet is identified as a cost-effective investment, with shares trading for less than 16 times forecast earnings for 2026, which is 30% below its trailing five-year multiple [24]. - The company derives 75% of its net sales from advertising, maintaining a dominant position in internet search with a 90% market share [22]. - Google Cloud is recognized as a key long-term growth driver, with the integration of AI solutions expected to enhance cash flow from this segment [23].