The S&P 500 Entered a Correction Last Week. 3 Stocks Down 20% or More to Buy on the Dip.

Group 1: Market Overview - A stock market correction is defined as a 10% to 20% pullback from a peak, with the S&P 500 entering correction territory on March 13, marking the first occurrence since 2022 [1][2] Group 2: Investment Opportunities - During market corrections, shares of quality companies often become more attractive, providing better buying opportunities [2] - PepsiCo is currently trading at a 19% discount to its usual valuation, down about 25% from 2023 highs, with a price-to-earnings ratio of 21 compared to its historical average of 26 [4][5] - Ulta Beauty's stock is down nearly 40%, but it is still expected to earn $1.3 billion in operating income in the coming year, making it a cheap stock at a valuation of$16 billion [10][11] - PayPal's stock trades at just 17 times earnings, close to its historical lows, with expected ongoing improvements in transaction margins leading to potential earnings growth through 2027 [15] Group 3: Company-Specific Insights - PepsiCo has a strong portfolio, including a recent acquisition of Poppi for nearly $2 billion, and has increased its dividend for 53 consecutive years, with a current yield approaching 4% [3][6] - Ulta Beauty has over 1,400 locations and has shown resilience during economic downturns, with same-store sales growth during the Great Recession [8] - PayPal's recent stock performance is correlated with the broader fintech sector, and under new management, it is renegotiating contracts to improve transaction margins [12][14] Group 4: Conclusion - Pepsi, Ulta Beauty, and PayPal are identified as resilient businesses that have experienced stock price declines, presenting potential investment opportunities for investors looking to deploy cash [16]