The Nasdaq Composite has recently entered correction territory, raising concerns among investors about a potential bear market. Factors contributing to this unease include escalating geopolitical tensions, ongoing trade wars, and rising oil prices. While a market crash is not guaranteed, experts suggest that if one does occur, it could present a prime opportunity for savvy investors to acquire undervalued stocks.
In particular, two healthcare stocks stand out as strong buys in the event of a downturn: Becton, Dickinson and Company (BDX) and Intuitive Surgical (ISRG). Becton, Dickinson, despite its recent struggles, boasts a robust business model with over 90% of revenue from recurring consumables and a long history of dividend increases. Meanwhile, Intuitive Surgical, a leader in robotic-assisted surgery, may see its valuation become more attractive during a market dip, especially given its significant recurring revenue from its da Vinci systems.
For market professionals, the key takeaway is to identify resilient stocks like Becton, Dickinson and Intuitive Surgical that can withstand downturns and offer strong recovery potential, making them ideal candidates for investment during a bear market.
Source: fool.com