The S&P 500 roared higher over the past few years, driven by technology stocks and other high-growth players. But earlier this year, various headwinds put the brakes on that momentum. Investors worried about the conflict in Iran, the pace of interest rate cuts in the U.S., and the soaring valuations of many growth stocks.
All of these concerns weighed on investor sentiment, and therefore, on appetite for stocks, particularly companies that rely on economic growth. But the positive point here is that the sell-off pushed the valuations of many quality companies down, creating buying opportunities for investors.
Let’s check out three of the best S&P 500 stocks to buy now after the recent decline.
Image source: Getty Images.
1. Home Depot
Home Depot (HD 0.23%) faces various challenges and these are elements that may hold consumers back from home improvement projects or home purchases — such as higher prices for gas and other goods, as well as housing market conditions. But the company has shown its resilience and, in the recent quarter, had plenty of good news to report.
The retailer reported revenue and net income that surpassed analysts’ estimates, with revenue climbing 4.8% to more than $41 billion. Home Depot also reaffirmed its guidance for the year, and in an interview with CNBC, noted positive engagement from the consumer in spite of today’s economic headwinds.
Today’s Change
(-0.23%) $-0.71
Current Price
$313.07
Key Data Points
Market Cap
$312B
Day’s Range
$311.46 – $314.96
52wk Range
$289.10 – $426.75
Volume
3M
Avg Vol
4.4M
Gross Margin
31.14%
Dividend Yield
2.95%
Meanwhile, Home Depot continues to aim for growth in the $700 billion professional market — this means selling to pros such as contractors and building specialists. The company’s fleet of more than 2,300 stores, its SRS distribution platform for professionals, and sales force of more than 5,000 offer it a moat, or competitive advantage in this space.
Considering all of this, Home Depot looks like a smart buy at 20x forward earnings estimates.
2. Nike
Nike (NKE +0.63%) has struggled in recent years, dealing with a variety of problems from tariffs to declines in consumer confidence — and it’s also faced strategic problems like focusing on its direct-to-consumer sales channel at the expense of wholesale channels. But the company has been making efforts to come back through its “Win Now” plan, a broad effort encompassing distribution, marketing, and product creation.
In the latest earnings report, Nike spoke of its focus on gaining market share back in the wholesale channel, removing certain inventory from stores, and supercharging “athlete-centered” innovation. Progress in wholesale sales is particularly important since this is where most Nike shoppers buy. In the quarter, wholesale revenue climbed 5% to $6.5 billion, driven by North America, the company’s biggest market.
Meanwhile, in spite of its troubles, Nike remains the favorite brand of a group with influence and buying power: teens. Nike was the No. 1 brand in all footwear and clothing in the fall 2025 Piper Sandler Teen Survey.
Today’s Change
(0.63%) $0.28
Current Price
$44.67
Key Data Points
Market Cap
$66B
Day’s Range
$44.21 – $44.72
52wk Range
$41.35 – $80.17
Volume
14.9M
Avg Vol
21.5M
Gross Margin
40.57%
Dividend Yield
3.63%
Nike’s recovery may not happen overnight, but the company is making wise moves and has a solid brand that resonates with key shoppers — such as teens — offering us a reason to be optimistic about the long term.
After the sell-off, it looks like a buy at 29x forward earnings estimates, down from more than 40x earlier in the year.
3. Carnival
Carnival (CCL 0.76%) suffered during early pandemic days, building up a wall of debt to support operations as sailings halted. Since that time, though, the company has made significant progress on paying down debt and has taken steps to favor profitability — for example, it replaced older ships with newer ones that don’t use as much fuel.
On top of this, Carnival has proven its popularity with travelers as bookings and revenue have reached record levels quarter after quarter. In the recent period, Carnival reported record revenue of $6.2 billion, bookings that climbed in the double-digits, and a 50% increase in earnings per share.
Today’s Change
(-0.76%) $-0.20
Current Price
$25.98
Key Data Points
Market Cap
$32B
Day’s Range
$25.82 – $26.50
52wk Range
$22.11 – $34.03
Volume
17.2M
Avg Vol
28.9M
Gross Margin
29.71%
Dividend Yield
1.15%
The company is clearly optimistic about its future as it announced a $2.5 billion share buyback program and launched a new growth initiative with targets to meet by 2029. Goals include more than 16% return on invested capital and more than 50% adjusted EPS growth from the 2025 level.
Right now, at 11x forward earnings estimates, Carnival is a steal considering all it’s accomplished and what it may accomplish over the next few years.
