The S&P 500 entered a correction, presenting buying opportunities for PepsiCo, Ulta Beauty, and PayPal.

From Yahoo Finance: 2025-03-22 04:15:00

The S&P 500 hit a stock market correction on March 13, with a 10% to 20% pullback from its peak. Quality companies like PepsiCo, Ulta Beauty, and PayPal are now on sale, providing investors with attractive buying opportunities at discounted prices.

PepsiCo, known for its iconic beverage portfolio and snack brands, is currently trading 19% below its usual valuation. Despite consumer cutbacks and price pushback, the company still managed top and bottom-line growth in 2024, with ongoing resilience expected in 2025.

Ulta Beauty, a recession-resistant establishment with over 1,400 locations, expects modest same-store sales growth in 2025. However, the stock is down nearly 40%, attributed to slow growth and slipping operating margins. Still, with projected operating income of $1.3 billion, it remains a cheap stock with share buyback plans.

PayPal, which outperformed the S&P 500 in 2024 but slipped in early 2025, is facing market downturns along with other fintech stocks. Despite past margin challenges, recent improvements and expected ongoing growth through 2027 suggest a promising future for the stock trading at historically low earnings multiples.

These three resilient businesses – PepsiCo, Ulta Beauty, and PayPal – have seen their stock prices drop amid the market correction, presenting a buying opportunity. Investors looking for long-term growth potential may find these stocks appealing additions to their portfolios.

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