To The Moon

A market correction is the perfect time to buy formerly high-flying growth stocks.

Market corrections are a painful but inevitable part of the investing cycle. Yet, there's an upside to the pain. Every bear market has represented an opportunity for patient investors to scoop up great companies on the cheap.

Data shows they typically resolve quickly, and throughout history every notable downturn in the broader market has eventually been erased by abull market rally. The Schwab Center for Financial Research says the average bear market since 1966 has lasted only about 15 months, while the typical bull market lasts roughly three years. Even better, from 1970 on, bull markets have tended to last more than six years on average. The last one went on for almost 11 years!

That's why smart investors don't despair when prices go down. They see that their favorite companies are now on sale, and they can buy them at lower prices. As we'll see, the two following supercharged stocks have the competitive edge necessary to help you buy low and sell high, making riches in the decades to come.

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Apple

Apple(AAPL1.01%)just made a lot of headlines with a flurry of announcements that included CEO Tim Cook agreeing to take a 40% pay cut this year and tie more of his earnings to Apple's stock performance; developing touchscreen Macs; and intending to dropBroadcomandQualcommas chip suppliers infavor of in-house production.

While many were surprised by the moves, in reality, only Cook's salary was unexpected. Apple taking greater control of its supply chain has been in the works for years, signaled by acquisitions it has made over time. For example, it bought low-power screen maker LuxVue back in 2014 and acquiredIntel's unit thatmakes wireless modems for smartphonesnearly four years ago, not to mention designing its own M1 chips.

The decisions will certainly enhance Apple's profits even further as it still largely outsources manufacturing and assembly, insteadpreferring to control design. Yet Apple's stock is down 25% from recent highs and trades at around 22 times trailing earnings, 20 times next year's estimates, and 22 times the free cash flow it generates. It's not bargain basement material, but represents a level that is very attractive for long-term investors who believe the iPhone maker has not run out of ideas and will remain a competitive force for years.

With the iPhone accounting for approximately half of all U.S. smartphone market share and its continuedshift to subscription servicesfurther boosting margins, Apple is a cheap stock to buy now.

IMAGE SOURCE: GETTY IMAGES.

Palantir Technologies

Data analytics firmPalantir Technologies(PLTR-0.71%)continues to pave the way for future growth opportunities through itsartificial intelligence (AI)-driven platforms, Gotham and Foundry, though the market these days continues to price the stock as if it won't win any more business. It's off some 58% over the past year, but down 82% from the all-time high set two years ago.

Gotham has been Palantir'stop sales driver in years pastas most of its business comes from government contracts. It needs to process and analyze massive amounts of data to perform tasks like coordinating millions of troops around the world and reading signals from a global flow of data. Yet today's businesses have an equal need for such capabilities, which is why Palantir created Foundry, and it's growing even faster.

The number of new customers buying Palantir's artificial intelligence andmachine learningsoftware has doubled in the past year, and it now has over 330 total enterprises in its ranks, up 66% year over year and over two-and-a-half times greater than in 2019. It provides the path for future growth.

For example, Palantir just partnered withCloudflare(NET1.03%)to help businesses cut their cloud costs. As more businesses and organizations move data to the cloud but utilize a multi-cloud approach, the complexity and costs associated with the transition increase.

Foundry is just in its early innings compared to Gotham, yet it's still rapidly expanding despite the current market turmoil. As a result, it will likely prove to be Palantir's profit center in the years ahead.

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