Are happy days here again for investors? It's way too soon to make that call. However, the stock market soared on Thursday on news of lower-than-expected inflation. This sparked hope that the worst might be over.
To be sure, the Nasdaq Composite Index remains in bear market territory. The S&P 500 could still slip back into a bear market. Whether the latest stock market rally has legs or not, here are three once-in-a-decade buying opportunities.
1. Alphabet
Alphabet's (GOOG +0.31%) (GOOGL +0.25%) share price has plunged around 35% year to date. The stock is bouncing back after the steepest decline from its peak since the Great Recession.
NASDAQ: GOOGL
Key Data Points
Investors were understandably disappointed with Alphabet's Q3 results. The tech giant's year-over-year advertising revenue growth slowed to a trickle and even declined sequentially. Alphabet also faces significant currency headwinds.
But these are only temporary issues. The company has been through advertising droughts in the past. Once the economic outlook improved, advertising sales rebounded and so did Alphabet's share price. This scenario will almost certainly be repeated in the not-too-distant future.
Meanwhile, Alphabet has growth drivers beyond advertising. In particular, its Google Cloud business has tremendous growth potential. Don't forget Waymo, either. The self-driving car technology unit could become a significant revenue generator over the next decade and beyond.
2. Disney
It's been well over 10 years since shares of The Walt Disney Company (DIS 0.33%) have lost more than half their value. But that's just what's happening so far in 2022.
NYSE: DIS
Key Data Points
Disney reported dismal fiscal Q4 results last week. The company didn't come close to hitting Wall Street revenue and earnings estimates. Its adjusted earnings fell from the prior-year period, mainly due to soaring costs with its streaming business.
Investors who write off Disney's prospects, though, could miss out on a big opportunity. The company launches its ad-supported tier for Disney+ next month. This should help Disney meet its goal of achieving profitability with the streaming service in fiscal 2024.
Disney's theme parks continue to perform exceptionally well, even with the Shanghai Disney Resort temporarily closed due to COVID-19. The company's Marvel and Star Wars franchises remain gold mines with seemingly unlimited monetization potential. The House of Mouse is more than strong enough to withstand the current headwinds.
3. Intuitive Surgical
This story might sound familiar by now. Intuitive Surgical (ISRG 1.62%) is bouncing back from its worst sell-off since the economic crisis of 2008 and 2009. Shares of the robotic surgical systems maker are still down more than 25% year to date after sinking as much as 49%.
NASDAQ: ISRG
Key Data Points
COVID-19 continues to present problems for Intuitive Surgical. Procedure volumes for its da Vinci robotic surgical systems have been negatively affected by lockdowns in some countries. Supply chain issues resulting from the pandemic have also hurt the company's growth.
But Intuitive Surgical's long-term prospects haven't diminished one bit. The use of robotic assistance in surgical procedures continues to grow. Intuitive remains the clear leader in robotic surgery with a market share of close to 80%.
Aging populations should drive higher demand for the kinds of procedures for which Intuitive's systems are used today. There are also many more surgical procedures that could benefit from robotic assistance. Intuitive Surgical's current pullback really could present a once-in-a-decade buying opportunity.
