5 high-convolution stocks to buy in the next market correction

It is useful to prepare a watchlist of the stocks you are planning to accumulate. The market has been witnessing volatility over the past few months as the Federal Reserve has raised interest rates to combat inflation. with NASDAQ Composite Index and S&P 500 In a bear market already in place this year, the stock price may fall further. You should view a market correction as a golden opportunity to either accumulate more shares of companies you already own or to start a new position in a company that has become too cheap.

Of course, you have to make sure several features are in place before you pull the trigger. Business needs to perform stable growthBe a major player within your industry, and enjoy tailwinds that will allow them to continue to do well. With these features, a buy-and-hold strategy can ensure that you enjoy steady compounding to achieve your retirement goals.

Here are five stocks you might consider buying during the next market correction.

Two people shop for products by the window and smile.

Image Source: Getty Images.

starbucks

starbucks (Subject -0.99%, is a global coffee chain with over 34,000 stores worldwide. The company reported an encouraging set of earnings for its fiscal 2022 third quarter, with net revenue up 9% year over year to a record $8.2 billion. Comparable-store sales grew 3% globally, with the US posting 9% growth, and active Starbucks reward members climbed 13% year over year in the US to 27.4 million members.

During its recent biannual investor day, Starbucks announced an ambitious three-year plan to deliver annual comparable store sales growth of 7% to 9%, revenue growth of 10% to 12%, and earnings-per-share (EPS) growth. year-old financial roadmap unveiled. 15% to 20%. Founder and interim CEO Howard Schultz also introduced incoming CEO Laxman Narasimhan, who will assume his new role on April 1 next year. With this plan in place, it looks like the company is kicking into high gear to deliver steady earnings growth for investors.

lululemon

lululemon (Lulu -1.58%, is a market leader for athletic apparel and footwear for yoga, running and training and offers innovative materials and interesting designs for its products. Its fiscal year 2022 second quarter results were impressive. Revenue rose 29% year over year to $1.9 billion, with comparable-store sales up 23% year over year. Net income increased 39.1% year over year to $289.5 million, partially offset by a one-time benefit of $10.2 million from the disposal of an administrative building.

Lululemon reports that The supply chain crisis is easing, allows the company to manufacture the products it needs to meet strong demand. The sports apparel company expects net revenue to grow at a three-year compound annual growth rate of about 26% and record sales between $7.87 billion and $7.94 billion for 2022.

okta

okta (okta) -5.64%, Software as a Service is a business that provides identity management services to over 16,400 customers to help them establish secure and convenient access to their systems. Shares of Okta are down about 72% to date, but the company is still turning off the lights with its latest Q2 2023 earnings release. Revenue increased 43% year over year, with subscription revenue up 44% year over year. The subscription backlog improved 25% year over year to 2.8 billion, while billing grew 36% year over year.

Okta believes it has a significant opportunity to grow as the total addressable market for its business is approximately $80 billion. The company has identified various growth drivers and will be implementing them to drive its top and bottom lines. It will work on improving its platform and network and will also use its successful “land and expand” strategy in larger organizations. International expansion is also on the cards as US revenue made up more than three quarters of total revenue for the quarter.

DocuSign

If you are looking for a quick, secure and convenient way to digitally sign your business contracts, DocuSign (document -6.14%, There is a cloud service that provides this service. The company claims over a billion users in 180 countries and also files a solid Q2 2023 report card. Subscriptions and total revenue continued to grow 23% and 22% year over year, respectively. Billings also saw an increase of 9% year over year.

DocuSign believes that its Agreement Cloud has a huge market opportunity with a total addressable market of approximately $50 billion. The company is confident in driving new use-cases such as document notarization and analytics. By expanding these new uses, DocuSign can drive greater adoption across the organization.

Chipotle Mexican Grill

Chipotle Mexican Grill (CMG) -1.00%, Offers an extensive menu of foods made using responsibly sourced ingredients that do not contain artificial colours, flavors or preservatives. The Mexican food chain, which has 3,000 restaurants in the US and parts of Europe, reported continued growth in its 2022 second quarter earnings report. Total revenue grew 17% year over year to $2.2 billion, with comparable-store sales up 10.1% year over year. Digital sales made up about 40% of revenue, reflecting the success with which Chipotle had achieved by pivoting to online orders during the pandemic.

The company is focusing on opening new stores and expects to open 235 and 250 new restaurants in 2022. The board of directors also approved the use of an additional $300 million for share buybacks.

Royston Yango Starbucks has positions. The Motley Fool has and recommends Chipotle Mexican Grill, DocuSign, Lululemon Athletica, Okta and Starbucks. The Motley Fool recommends the following options: long January 2024 $60 call at DocuSign and short October 2022 $85 call at Starbucks. The Motley Fool has one Disclosure Policy,

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