Strong S&P 500 stocks down over 20% offer opportunities

The S&P 500 recently entered a correction phase, falling over 10%. However, it's now only down less than 8% from its peak. Despite this recovery, several high-quality stocks from the S&P 500 have dropped by 20% or more. Four companies in particular may offer good buying opportunities: Alphabet, Vistra, Dollar General, and Airbnb. Alphabet, a major player in digital advertising and cloud computing, is considered undervalued. Its stock is trading at less than 19 times its future earnings estimates. The company is well-positioned for growth in emerging technologies like artificial intelligence and self-driving cars, making it an attractive investment. Vistra, a power generation company, has seen its stock decline by 32%. Analysts predict strong growth in electricity demand due to trends such as AI and electric vehicles. Vistra's strong market position, particularly in nuclear energy, could benefit shareholders as the demand for power increases. Dollar General's stock has fallen 68% from its highs, but the company continues to report healthy sales. In 2024, it saw net sales reach a record of $40.6 billion. Despite recent profit challenges, forecasts suggest that earnings may improve in the coming years, making it a potential bargain at its current price. Airbnb’s stock is down 21% from its recent highs. The company continues to witness growth, with more bookings and rising average daily rates. Despite concerns over competition, Airbnb is generating strong cash flow. The company is also planning to explore new business ventures, which could increase its stock's value. Investors who take advantage of stock dips can enhance their long-term profits. Exploring these four companies could be beneficial for investors looking to seize opportunities in the current market.