2 Stocks to Buy When the Stock Market Falls

Stock markets fell significantly on Monday, August 5. Of course, that’s no reason for long-term investors to panic. We’re technically still in a bull market, and whether or not stocks continue to fall, the drop could create opportunities to scoop up great value stocks from bargain bins. What companies should investors consider investing in while they’re down?

Here are two candidates of interest: Apple (NASDAQ: AAPL) And Visa (NYSE: V)Find out why these two companies are likely to be long-term winners, no matter how the market moves in the short term.

1. Apple

Apple shares fell about 5% on Monday. While that may not sound like much, considering we’re talking about a stock worth more than $3 trillion, that’s tens of billions of dollars. Apple’s performance has been somewhat volatile for much of the year. The company has not performed well in the first five months due to several headwinds, including slow iPhone sales in China, disappointing financial results, an antitrust lawsuit, and its perceived inability to keep up with sales. technology peers in the race for artificial intelligence (AI).

However, the company’s stock has rebounded over the past two months, thanks in part to its AI-related announcements at its developer conference in early June. How things will play out for the tech giant by the end of the year? No one knows for sure, and it’s not a question that particularly interests long-term investors. Still, the company’s prospects remain strong. That’s what matters most. First, Apple’s financial results have improved.

In its most recent reporting period, the third quarter of its fiscal 2024, which ended June 29, Apple’s revenue rose 5% year over year to $85.8 billion. Its earnings per share (EPS) of $1.40 were up 11% from the year-ago period. Revenue from its high-margin services segment rose 14.1% year over year to $24.2 billion. Second, Apple showed that it’s not out of the running in the AI ​​race. Clever new AI features – which it has dubbed Apple Intelligence – will be available to iPhone users (starting with the 15 Pro) and several of its other devices.

Apple has never sought to be first to market. The company has a knack for taking existing technologies and adding its own twist. This slow and steady strategy has served it well. Third, Apple has over 2.2 billion devices in its installed base, which gives it significant long-term monetization opportunities. Apple enjoys significant competitive advantages, including switching costs (it’s not easy to leave its ecosystem), one of the strongest brands in the world, and the network effect within its App Store, because the more app developers it has, the more attractive it is to customers, and vice versa.

The story continues

In short, even though Apple isn’t growing as fast as it has over the past decade, it’s still a great tech stock to buy and hold.

2. Visa

Visa also fell along with the broader market on August 5, but that was in line with the company’s performance…