Market Plunge Sparks Investor Interest in Discounted Stocks
The stock market has experienced a significant downturn in recent months, with major indices seeing notable declines. The NASDAQ, for instance, has fallen 8.6% since its peak in October 2025, and was down as much as 13% earlier this week. This broad market weakness has impacted even the most popular technology and growth stocks. Nvidia has dropped 14%, AMD is down 16%, and Tesla has seen a 21% decline. Palantir has fallen 25%, while companies like SoFi (-49%), Robinhood (-53%), Hims (-60%), and Duolingo (-65%) have experienced even steeper drops. This period of market volatility, often referred to as ‘discount time,’ presents a prime opportunity for investors to acquire quality stocks at lower prices.
Celsius Holdings: A High-Growth Energy Drink Contender
One such company benefiting from this market environment is Celsius Holdings, a prominent player in the energy drink market. Over the past five years, Celsius has significantly outperformed the S&P 500, with its stock rising 91% compared to the S&P 500’s 59%. However, year-to-date, Celsius has faced a sharp correction, down nearly 29%, while the S&P 500 has only declined 4%. This decline is largely attributed to concerns over competition from Costco’s newly launched, lower-priced energy drink, which could impact Celsius’s roughly 10% business derived from Costco.
Celsius is known for its popular energy drinks, which have gained significant traction in the fitness community. The company has expanded its portfolio through acquisitions, including Alani, a rapidly growing brand with a strong appeal to the female demographic, and Rockstar Energy, acquired from Pepsi. In 2019, Celsius generated $75 million in revenue, a figure that surged to over $2.5 billion last year. Analysts expect revenue to reach $3 billion to $4 billion this year. Despite its impressive growth, Celsius trades at a forward price-to-earnings (P/E) ratio of around 20, which is considered low for a high-growth company. The company is expected to grow revenue by 37% this year and 10% next year, with potential for double-digit growth through the end of the decade.
The concern over Costco’s private-label energy drink overlooks the enduring power of brand loyalty in the beverage industry, similar to how Coca-Cola and Pepsi have maintained market dominance despite numerous lower-priced competitors. The energy drink market is increasingly consolidating into a three-horse race between Red Bull, Monster, and Celsius. With leadership changes at Red Bull and Monster, Celsius, under its current CEO, is positioned for significant long-term growth as the market leader in the energy drink space emerges over the next decade.
Amazon: E-commerce Giant Poised for Rebound
Amazon, a company synonymous with e-commerce, has surprisingly underperformed the S&P 500 over the past five years, with its stock showing less than half the performance of the broader index. Year-to-date, Amazon is down over 7%, compared to the S&P 500’s 4% decline. This underperformance, despite strong revenue and earnings growth, is attributed to its historically high valuation. However, Amazon’s valuation has now become attractive, trading at some of its lowest P/E ratios in years.
Amazon’s business is built on three core pillars: e-commerce, Amazon Web Services (AWS), and its advertising business. E-commerce remains a dominant force, while AWS is its most profitable and strategically important segment. The advertising business has also seen immense growth, fueled by its e-commerce platform and expansion into sports broadcasting rights. Revenue growth remains consistently strong, often exceeding 10% quarter-over-quarter. AWS, in particular, is showing accelerating growth rates, moving from 17% to 24%.
Despite significant capital expenditures, estimated to be as high as $200 billion this year, Amazon’s heavy investment in infrastructure, including warehouses, data centers, and logistics, is a long-standing characteristic of its business model. This differs from companies like Meta and Google, which are more recently increasing their capital spending. With its attractive valuation and robust growth across its core businesses, Amazon is positioned to significantly outperform the S&P 500 over the next five years.
Elf Beauty (ELF): A High-Growth Cosmetics Player
Elf Beauty, a high-growth company in the beauty and cosmetics sector, has delivered exceptional returns, up 119% over the past five years, more than double the S&P 500’s performance. Despite this strong track record, Elf Beauty has also experienced a significant pullback year-to-date, down 21% while the S&P 500 is down 4%. This presents a potential buying opportunity for long-term investors.
The company’s CEO has expressed strong conviction in the stock, continuing to buy shares even after significant gains. The belief is that the stock, trading under $100, offers a compelling risk-reward profile based on current projections and data. While the short-term stock price movement is unpredictable, the long-term potential for Elf Beauty remains substantial.
American Express: A Quality Dividend Value Stock
American Express (AXP) stands out as a high-quality dividend and value stock, having outperformed the S&P 500 with a 103% gain over the past five years, compared to the S&P 500’s 59%. However, like many growth stocks, it has faced a significant correction this year, down 19.4% year-to-date, contrasting with the S&P 500’s 4% decline.
American Express is widely considered one of the highest-quality companies in the stock market, boasting a strong business model, exceptional management, and robust financials. Its premium credit card offerings, such as the Gold and Platinum cards, are highly popular and generate substantial revenue not only from transaction fees but also from annual cardholder fees, effectively charging customers for the privilege of using their services. This premium positioning ensures a loyal customer base, with a significant concentration among the top 10% of income earners, who tend to maintain spending even during economic downturns.
Warren Buffett’s significant investment in American Express, making it his second-largest holding at Berkshire Hathaway, underscores the company’s quality and long-term potential. The company demonstrates consistent revenue growth and has a strong upward trend in earnings per share. Furthermore, American Express actively buys back its shares, which, combined with increasing net income, is expected to drive substantial earnings per share growth. This shareholder-friendly approach, coupled with its strong market position and customer loyalty, makes American Express a compelling investment, even amidst broader market volatility.
Market Impact and Investor Considerations
The current market environment, characterized by significant price drops across many popular stocks, offers a compelling ‘discount time’ for investors. Companies like Celsius, Amazon, Elf Beauty, and American Express, despite recent price weakness, possess strong underlying fundamentals, significant growth potential, and established competitive advantages. Investors should focus on the long-term prospects of these businesses, considering their market position, revenue growth, profitability, and valuation. While short-term market fluctuations are unpredictable, strategic investment in quality companies during periods of market correction can lead to substantial long-term gains. The key is to buy strong businesses at attractive valuations, ensuring a favorable risk-reward profile for future growth.
Source: 5 Stocks I’m Buying Now‼️April 2026 (YouTube)
