Nasdaq Correction: These 2 Safe Stocks Finally Look Like Bargains

In times of market turmoil -- like now -- two ideas in particular stand out: the need to own some "safe" stocks, or those that can hold up under pressure, and the opportunity to buy stocks, after declines, for a great price.

Though the Nasdaq soared in the double digits over the past two years and even showed positive momentum in the first weeks of the year, recent times have been tougher. President Donald Trump announced tariffs on imports from Canada, China, and Mexico -- the U.S.'s biggest trading partners -- and investors worry about the impact these measures will have on corporate earnings and the economy in general. In fact, in recent days, concerns have escalated, with some fearing a recession.

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As a result, the Nasdaq has declined, even moving into correction territory as of late last week when it fell more than 10% from its most recent high back on Dec. 16. And on March 10, it fell 4%, delivering its worst performance since September 2022. It's important to hold some safe stocks -- and pick them up at a good price -- no matter what the general market is doing. But in times of uncertainty, this becomes a particularly smart move. Let's check out two safe stocks to buy that finally look like bargains during this Nasdaq correction.

Image source: Getty Images.

1. Amazon

Amazon (NASDAQ: AMZN) falls into my "safe" category for a couple of reasons. First, it's important to remember that in e-commerce, the company has more than 200 million members in its Prime program. They subscribe because they know they can find low prices on Amazon, and this could prompt them to shop even more on Amazon during times of economic uncertainty.

This market leader also makes a "safe" buy because it's well prepared for economic difficulties thanks to moves it made just a couple of years ago when it was dealing with the impact of rising inflation. Amazon revamped its cost structure, cutting jobs and focusing on efficiency, and the company even reorganized its fulfillment network from a national model to a regional model, a move that's decreased its costs. These measures should help Amazon manage the next economic downturn, whether it's right around the corner or years down the road.

On top of this, Amazon has a long track record of earnings growth and a solid cloud computing business that has proven its resilience. Amazon Web Services (AWS) continued to grow revenue even during the recent higher inflation period.

Considering all of this, Amazon looks "safe" and dirt cheap trading at only 30 times forward earnings estimates, down from more than 45 times just a few months ago.

2. Intuitive Surgical

Intuitive Surgical (NASDAQ: ISRG) is the global leader in robotic surgery, something that is done more and more frequently in common minimally invasive procedures such as hernia repair. Medical device companies represent a source of safety for investors because -- other than in exceptional circumstances like the pandemic when surgeries were postponed -- patients continue to go for their procedures regardless of the economic context. This and Intuitive's leadership have helped the company deliver billions of dollars in earnings over time.

Now, speaking of leadership, this is another important point, and something that adds to Intuitive's "safe" profile. Surgeons will train on Intuitive's flagship da Vinci platform, meaning they're very familiar with it. This is key because it means they likely will favor continuing with the da Vinci rather than switching to a rival. And to strengthen this solid competitive moat, the platform's price comes into play. After hospitals spend $1 million or more on a robot, they probably will aim to stick with it for quite some time to amortize the expense.

And Intuitive hasn't stopped growing. It continues to work on its technology and recently launched a new version of the da Vinci, featuring more than 150 design innovations.

Now let's talk valuation. Intuitive stock generally isn't cheap, which is understandable considering its solid moat or competitive advantage, earnings performance, and future prospects. Against this backdrop, trading at 59 times earnings estimates, down from about 80 times a few months ago, Intuitive is reasonably priced, making it another smart buy in the Nasdaq correction.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Intuitive Surgical. The Motley Fool has a disclosure policy.