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The markets have been volatile over the past few weeks as investors process a slew of economic and policy changes. The tech-heavy Nasdaq Composite is officially in correction territory, down more than 13% from its recent highs as of the close of trading Monday.
Times like these can induce panic among investors and cause high selling activity, but the smartest investors will recognize that this presents a buying opportunity for certain stocks. Two incredible stocks that are feeling the heat right now are Costco Wholesale (NASDAQ: COST) and SoFi Technologies (NASDAQ: SOFI), and now is a great time to scoop up shares.
1. Costco: Reliable sales and income
At first glance, Costco doesn't look like a typical high-growth stock. It's in consumer goods, not tech, and it's been around for a long time.
But Costco stock has been an absolutely incredible performer, and its business keeps chugging along, generating high sales growth and huge profits.
In the fiscal 2025 second quarter (ended Feb. 16), sales increased 9% year over year, driven by a 6.8% increase in comparable-store sales. E-commerce is becoming a standout driver, increasing 21% in the quarter. Management says that it's growing its share of sales of big and bulky items, and it's digging into where it has an edge in digital, such as using its warehouses as delivery points.
Quarterly earnings per share increased from $3.92 in the previous year to $4.02. Costco is incredibly profitable, driven by its annual membership fees. Its model of rock-bottom prices and a membership fee breeds loyalty and sales growth, and the membership fee is a reliable recurring revenue stream. Paid member households increased 6.8% year over year in the second quarter, and U.S. and Canada renewal rates were 93%.
Costco stock has become extremely expensive, and its P/E ratio was recently higher than 60. That's highly unusual for a stock in its category. But Costco stock is 13% off of its highs as I write this, and at the current price, it's trading at 55 times trailing-12-month earnings. That's still high, because Costco keeps delivering, and the market has confidence in Costco's future. Costco is a forever stock that should reward long-term investors for years.
2. SoFi: The bank of the future
SoFi is in many ways the direct opposite of Costco. It's a young tech stock focused on the financial industry, and its stock has been volatile since it went public a few years ago in a special purpose acquisition company (SPAC) deal.
It's been reporting fabulous growth and has become sustainably profitable. In the 2024 fourth quarter, revenue increased 27% year over year, and net income switched to positive $499 million from a $301 million loss the prior year.