A Once-in-a-Decade Opportunity: 3 Magnificent Stocks Down Between 40% and 73% to Buy Right Now

Core Viewpoint - The current market correction presents a potential buying opportunity for stocks, particularly those trading at historically low valuations, with three specific companies highlighted as attractive investments [2]. Group 1: Zoetis - Zoetis is a leading animal healthcare company with over 300 products for companion animals and livestock [3]. - Since its spin-off from Pfizer in 2013, Zoetis has achieved an annualized total return of 15%, despite a recent stock decline of 39% [4]. - The company reported revenue and adjusted earnings per share growth of 11% and 17%, respectively, in 2024, with significant sales growth in its osteoarthritis pain management products for pets [5]. - Zoetis's dividend yield is currently at 1.2%, the highest in its history, with an 18% increase in dividend payments over the last decade [6]. Group 2: Yeti - Yeti is a lifestyle brand known for premium outdoor products, with a loyal customer base among outdoor enthusiasts [8]. - Despite a 75% decline from its all-time highs due to a product recall and tariff concerns, Yeti has more than doubled its sales, net income, and free cash flow since its IPO [9]. - The company is expanding internationally, with 30% international sales growth in 2024, and is currently trading at its lowest-ever P/E ratio of 13 [12]. - Yeti plans to produce 80% of its drinkware outside of China by the end of the year, supported by a $300 million net cash balance [13]. Group 3: Wingstop - Wingstop operates 2,154 locations in the U.S. and 359 internationally, achieving 21 consecutive years of same-store sales growth [14]. - In 2024, Wingstop increased sales, net income, and store count by 16%, 36%, and 55%, respectively, yet its stock price is 49% below its 52-week highs [14]. - The company is currently trading at 59 times earnings, significantly lower than its historical average of 100, presenting a potential investment opportunity [15]. - Wingstop has a pipeline of over 2,000 restaurant commitments, which is the highest in its history, indicating strong growth potential [16].