Core Viewpoint - The current market correction, particularly in the Nasdaq Composite, presents potential buying opportunities for long-term investors, especially in high-quality stocks like Costco, despite its current high valuation [2][4][5]. Company Overview - Costco operates as a club retailer, generating significant revenue from membership fees, which constitute over half of its gross income, allowing it to maintain low retail margins [6][7]. - The company has a strong customer retention strategy, evidenced by a membership renewal rate exceeding 90%, indicating effective customer satisfaction [7]. Financial Performance - In the fiscal second quarter of 2025, Costco reported a 9.1% increase in sales, with same-store sales also rising, alongside a 5.1% increase in traffic and a 3.2% rise in the average ticket size [8]. - Despite a strong operational performance, Costco's quarterly earnings fell slightly short of Wall Street's consensus estimates, leading to some investor disappointment [8]. Valuation Insights - Costco's stock is currently considered expensive, with its price-to-sales, price-to-earnings, and price-to-book ratios all above their five-year averages and near historical highs [3][4]. - If the market downturn continues, Costco's stock may reach more reasonable valuation levels, making it an attractive option for growth-oriented investors [5][9]. Investment Strategy - Investors are encouraged to prepare a wish list of stocks, including Costco, to capitalize on potential price drops during market corrections [2][10]. - A target for increased interest in Costco's stock would be if its average price-to-earnings ratio aligns with its five-year average of around 40 [11].

Core Viewpoint - The market is experiencing a sell-off due to tariff implications and rising geopolitical tensions, yet stocks like Johnson & Johnson (JNJ), Eli Lilly (LLY), and Pfizer (PFE) are standing out as potential investment opportunities [1]. Group 1: Johnson & Johnson (JNJ) Valuation - JNJ is currently trading below its decade-long median of 16.4X forward earnings, with a peak of 20.1X over the last 10 years [2]. - The stock has a beta ratio of 0.47, indicating it is less volatile than the market benchmark [2]. Group 2: Investment Outlook - JNJ stock has a Zacks Rank of 3 (Hold) after a significant year-to-date rally, suggesting that while there may be better buying opportunities near 52-week peaks, further price increases are possible [3]. - The company is viewed as a hedge against recent market volatility due to its steady growth and reasonable valuation [3].