A market correction is a great time to go shopping for unstoppable stocks. During corrections, these shares often take a bit of a pause -- offering us a decent entry point. So, what type of stocks am I referring to? They're usually market leaders and have a track record of solid growth. They also offer bright revenue prospects well into the future.
Here, I'll talk about leaders in three different industries: Robotic surgery, electric vehicles (EV), and e-commerce. You'll want to pick up these stocks on the decline. But don't make the mistake of selling once they rebound. There's much more to come further down the road.
Tesla (TSLA 4.72%) was one of the stock market's big winners last year. The shares soared more than 740%. Can that happen again? Maybe not so quickly. But Tesla has plenty of potential to go that far and even further over time. The EV leader delivered more than half a million cars last year. And in the most recent quarter of this year, Tesla's popularity didn't falter.
The carmaker actually achieved a few records in the second quarter. It delivered more than 200,000 vehicles, reached an operating margin of 11% (up from 5.4% a year ago), and topped $1 billion in net income on a GAAP basis.
Tesla is also making impressive gains in China. What's interesting there is that overall, auto sales are falling -- but Tesla's sales are rising. The company sold more than 44,200 vehicles made locally in August, Reuters reported. That's up from more than 32,900 in July.
Of course, Tesla faces more and more competition in the EV market. But the company has been working on costs to make its vehicles affordable for more people. For example, Tesla cut the base price of two of its lower cost vehicles in the U.S. earlier this year. Tesla is also an innovator. CEO Elon Musk is dedicated to working on technology such as full self-driving capabilities. All of this should keep the company one step ahead of rivals -- and in the spotlight over the long term.
2. Intuitive Surgical
Intuitive Surgical (ISRG 1.03%) is the global leader in robotic surgery. The company holds more than 79% of the market, according to BIS Research. Intuitive's da Vinci system helps surgeons perform a vast array of minimally invasive procedures in areas such as urology, gynecology, and cardiac and general surgery.
The da Vinci's install base now totals more than 6,300 units worldwide. That's 10% higher than it was a year ago. And in the second quarter, da Vinci procedures increased 68% year over year.
We have to consider that some procedures were postponed last year during the worst of the pandemic. That resulted in slower growth in last year's second quarter. It also meant higher growth in this year's second quarter -- as hospitals caught up on those postponed procedures. But overall, Intuitive's revenue has been climbing in recent years.
Importantly, Intuitive doesn't generate revenue only from system installs. It actually generates most of its revenue from the sales of instruments and accessories. So once a system is installed, Intuitive's revenue opportunities aren't over.
The company's shares have climbed over the long term -- surpassing $1,000 a share. But it may soon be easier for more people to get in on this stock. Intuitive voted for a 3-for-1 stock split that should happen next month. That may boost the shares right away. But hang onto them. They have further to go in the future.
If Amazon (AMZN 4.44%) stock slips, it won't be for long. Amazon is a leader in two growing areas: E-commerce and cloud computing services. And it's likely to maintain leadership in both.
The company's Prime membership program offers shoppers everything from two-hour delivery of grocery items to same-day delivery on other essentials. Let's not forget the access to books, music, and movies. And Amazon's pharmacy offers members the best prices, delivery, and easy refills on medications.
Now let's talk about cloud computing. Amazon Web Services (AWS) already is a major profit driver. The unit makes up 54% of Amazon's total operating income. I'm confident AWS will continue to greatly contribute to Amazon's profitability.
Amazon said that during the pandemic, more and more companies realized they didn't want to manage their own infrastructure -- so they turned to AWS. And AWS is expanding. The company plans on making it possible to operate data centers in more and more locations. Next up are new infrastructure regions in the United Arab Emirates in 2022 and Israel in 2023.
Amazon shares may seem lofty at more than $3,300. But Wall Street predicts they could climb 24% from here in the coming 12 months. Considering the company's growth, that's very likely. So even a small correction is a big opportunity to get in on this unstoppable stock.