Got $1,000? 2 Stocks to Buy Now While They're On Sale | The Motley Fool

Not every pullback is a buying opportunity. Some downticks are earned. However, sometimes a stock falls out of favor when the business is holding up better than the chart may suggest. If you have a little money to put to work, I have a few ideas for some opportunistic purchases. Netflix ( NFLX +0.18%) and Lululemon Athletica ( LULU 0.04%) are trading at least 30% below their 52-week highs. I think they're intriguing landing spots for your next $1,000 investment. Let's take a closer look. Image source: Getty Images. 1. Netflix: down 30% Shares of Netflix have fallen 30% since peaking this summer, but I'd like to start with a different starting line. The leading premium player among streaming service stocks has surrendered 10% of its value since the morning of Dec. 5, when Netflix was announced as the winning bidder for Warner Bros. Discovery ( WBD +1.27%). Go back another two weeks, and the stock has fallen 15% since it was a confirmed bidder in the final round of offers made for Warner Bros. Discovery on the morning of Nov. 20. This timeline has seen Netflix cough up $77 billion of its market cap . All because it ultimately bid $72 billion in equity value for the iconic studio and content powerhouse? Making it even more of a head-scratcher, the market is actually up by more than 3% during that time. The market has essentially wiped out the relative value of the Warner Bros. deal. NASDAQ: NFLX Key Data Points Netflix remains a rock star, boasting more than 300 million paying subscribers. As traditional media stocks were struggling to turn their streaming businesses profitable -- and at least two major studios put themselves up for sale -- Netflix has been profitable every single year since 2002, the year it went public. Netflix doesn't need Warner Bros. Discovery, but it's worth noting that it's financially in a position to buy out a rival without having to bring in a laundry list of third-party investors. It has achieved critical mass, making it the ultimate tastemaker and launchpad of new properties. It also helps that it's making a ton of dough along the way. Its trailing free cash flow of $9 billion and its scalable business model mean the platform is only getting stronger with every passing year. Do you know the last time Netflix's annual revenue declined? Never . It did have one year of single-digit growth -- a 7% increase for 2023 -- but it has followed that up with back-to-back years of acceleration in top-line gains. History has taught us that pullbacks are buying opportunities when it comes to Netflix. NASDAQ: LULU Key Data Points 2. Lululemon: down 50% Netflix is down quite a bit, and Lululemon has fallen even harder. In a world of yoga poses, the athletic apparel stock has been a downward-facing dog. Revenue growth has moderated after 19 years of double-digit top-line gains. Lululemon is bracing investors for 4% to 6% in revenue growth this...

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