4 Pullback Stocks We Think Are On Sale Now

Ask yourself this…

Would you rather have bought Amazon shares for US$4.70 in December 1999, or for US$0.36 in September 2001?

Both purchases would have seen tremendous growth — a $1,000 investment in December 1999 would be worth US$19,932 today.

And a $1,000 purchase when Amazon pulled back in September 2001 would be worth $260,222.

Showing that sometimes it can pay to wait for a pullback.

Here's the thing with the stock market: That same year Amazon cratered? Other stocks did too, and many didn't survive. Think Pets.com, Flooz.com, and countless other dot-coms we've long since forgotten.

Pullbacks are when millionaires are potentially made, but also potentially lost.

So how do investors  know the difference between buying low for a bargain and catching a knife when it's falling?

Stocks that soared as result of the pandemic have seemingly crashed down to earth. Many sold off due to poor results as pre-pandemic life began to resume… 

While others got caught up in the tide of fear while their underlying performance continued to actually improve.

Like one company that despite seeing a big pullback from its recent all time high, sits in the one tech sector that continues to grow. It's an industry leader providing the key infrastructure powering the 17 trillion dollar Artificial Intelligence boom. And despite the recent drop, it likely won't be long before investors and institution's catch on…

Or a world class entertainment company that's seen a big pullback in price — And despite the dip, and with multiple revenue streams, the company's long-term bull thesis remains strong. The difference between solid business fundamentals and the share price couldn't be more stark.

Which is where the biggest market opportunities could be lurking right now. If you can pick the winning stocks from the ones whose share price ran up on pure hype – well it's in times like these that could have such a profound impact on your financial future.

The analysts at Motley Fool Share Advisor have a long-standing record of picking winning stocks.

In fact, we recommended Amazon in February 2012, when shares were just US$8.94.

And Netflix in July 2012, when shares were just US$8.42.

Don't forget Apple in December 2011, when shares were US$12.32.

Granted, I'll be the first to admit that not all of our picks have been — or will be — such big winners. As you may know in the world of investing – there are never any guarantees… and no one has a crystal ball. Even so, we couldn't be more proud of the fact that we've potentially helped some independent Aussie investors ride the wave of some of the biggest investing trends over the years.

And better yet, our team certainly isn't resting on their laurels. In fact, they've just compiled research on four stocks whose prices tanked due to recent market sentiment — yet have strong underlying fundamentals and growth catalysts, potentially setting them up for future success.

I mentioned two of them above, but I need to mention a third stock. Where it's seen a slight pullback compared to the others. Last time it dropped that much was during the covid crash of 2020, where it fell 29%. Astonishingly after that pullback, it rallied to an all time high up 178%. And right now, the same company is buying up its own shares.. which may potentially indicate insiders may think the share price is dirt cheap. Either way, given its previous recovery and rock solid position in the market… Now might be the time to buy.

To help pullback investors, we're revealing all three of these stocks, along with one more, in our new "Pullback Stocks 2022 – 4 World Class Stocks That Could Transform Your Wealth" report available for FREE to Share Advisor members.

Warren Buffett says, "Be greedy when others are fearful".

And given some great companies are – in our opinion – being unfairly treated by the market – right now could be that time.

Enter your email address to discover "Pullback Stocks 2022", so you can invest now before they potentially rebound. 

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Returns as of 19 January, 2023. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, and Netflix. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. For more information about The Motley Fool see our Financial Services Guide. All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product.