Nasdaq Correction: 2 Stocks Down 13% and 57% to Buy Now and Hold Forever

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.

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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.

There are several factors driving growth and profits at scale. It's attracting millions of new customers annually who are interested in its easy-to-use, all-digital app that simplifies financial management. Its core target market is young professionals who are just starting out on their financial journeys. They're generally tech savvy, and they appreciate SoFi's tech-strong platform and the experience it offers.

SoFi has branched out from its roots as a lending co-op and offers a slew of financial services including bank accounts and investing tools. It also strives to create a differentiated model, offering alternative services like a fund where users can invest in SpaceX. It has also provided access to some initial public offerings (IPO) that are usually closed to individual investors.

The financial services segment is growing rapidly, and sales increased 84% year over year in the fourth quarter. Non-lending segments, which include SoFi's tech platform segment, are increasing as a portion of sales, climbing up to 49% in the fourth quarter. That takes some of the pressure off of the lending segment, which experienced pressure last year, and also expands the company's opportunities.

SoFi stock is 57% off of its all-time high as I write this, and it trades at a forward, one-year P/E ratio of 23 using earnings estimates, or near its 52-week low.

There may be a bumpy road along SoFi's climb to the top strata of the banking industry, and even at this price, it's not for a risk-averse investor. But if you have some appetite for risk, now could be a great time to buy shares and hold for the long term.

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Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.