With the Nasdaq in Correction Territory, I've Got My Eye on These 2 Stocks

2 weeks ago 8

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Jeremy Bowman, The Motley Fool

Sat, Mar 22, 2025, 1:00 AM 5 min read

While it's frustrating to spot the worth of your portfolio shrink, seasoned investors cognize that banal marketplace sell-offs tin make fantabulous buying opportunities arsenic different promising maturation stocks thin to get deed by investors rushing to fastener successful gains and support themselves from further terms declines.

In my view, these 2 stocks are shaping up arsenic charismatic buys during this marketplace correction.

A reddish banal illustration showing an arrow going down.

Axon Enterprise (NASDAQ: AXON) was 1 of the top-performing stocks successful the S&P 500 past twelvemonth with a 130% gain, and it has been a large victor implicit the past decennary arsenic well.

Axon is simply a person successful instrumentality enforcement technology. It makes Taser conductive electrical weapons, assemblage and dashboard cameras, and respective unreality bundle programs that assistance instrumentality enforcement agencies negociate records and evidence. The institution is besides investing successful cutting-edge artificial quality (AI) exertion with a caller generative AI instrumentality called Draft One that produces archetypal drafts of constabulary reports based connected assemblage cam and dash cam footage. The time-saving merchandise has been well-received by constabulary officers.

The banal fell sharply successful mid-February connected quality that it had dissolved its concern with Flock Safety implicit a declaration dispute. However, during the fourth-quarter net telephone connected Feb. 25, Axon absorption expressed optimism astir the anticipation of the 2 companies negotiating a caller statement connected caller terms. Better-than-expected fourth-quarter results besides gave the banal a boost, but it's inactive down 25% from the all-time precocious it logged earlier this year.

Meanwhile, the broader marketplace sell-off has enactment further unit connected premium-priced stocks similar Axon, which trades astatine a price-to-sales ratio of 21 and a price-to-earnings ratio supra 120.

However, adjacent if the U.S. system continues to weaken, Axon has a fig of advantages that marque it an charismatic bargain astatine these levels. First, its superior clients are section and authorities instrumentality enforcement agencies, which tin beryllium much insulated from economical cycles than backstage companies. Meanwhile, the Trump administration's absorption connected nationalist information and migration enforcement could besides favour the company.

With its complementary hardware and bundle offerings, Axon has a beardown acceptable of competitory advantages, and absorption expects gross to turn different 25% to betwixt $2.55 cardinal and $2.65 cardinal this year. The institution looks connected way for dependable maturation careless of the banal market's fluctuations, and investors tin instrumentality vantage of the caller sell-off to prime up shares.