2 Great Growth Stocks Down 8% and 25% You’ll Wish You’d Bought on the Dip, According to Wall Street | Colorful fool
According to stock analysts, the two stocks have pulled back enough to make them attractive buys.
If you want to buy growth stocks, you need to balance price versus value because growth companies often command premium prices. But sometimes investors offer good businesses for sale.
That seems to be the case with consumer goods giant Dividend King Coca-Cola (KO +4.06%) and a manufacturer of medical devices Intuitive surgery (ISRG +0.93%)according to most Wall Street analysts who cover them.
Here’s what you need to know.
Coca-Cola trades at a fair to cheap price
There are 25 analysts covering Coca-Cola, and 22 of them rate the stock a buy or strong buy. That means nearly 90% of Wall Streeters think Biant Beverage is worth adding to your portfolio right now. That’s likely at least in part because the stock has sold off a bit, down nearly 10% from its 52-week highs. It’s not a huge drop, but it’s made a significant difference on the valuation front.
Today’s Change
(4.06%$2.78
Current price
$71.22
Key data points
Market capitalization
307 billion dollars
Daily range
$70.23 -$71.39
Range 52 weeks
$60,62 -$74.38
Volume
31 thousand
Avg. flight
16 million
Gross margin
61.46%
Dividend yield
0.03%
To put some numbers on it, the price-to-sales (P/S), price-to-earnings (P/E) and price-to-book (P/B) ratios are currently below their five-year averages. While the dividend yield is only in the middle, historically it’s a relatively attractive 3% or so. for information S&P 500 the index’s return is only 1.2% and the average consumer staples return is 2.7%.
Overall, Coca-Cola looks reasonably priced to a bit cheap. That’s apparently enough to get analysts as excited as possible. It should also probably get you excited if you’re a long-term dividend lover.
What you get when you buy Coca-Cola is really worth getting excited about. It’s a leading soft drink maker that happens to be one of the largest consumer goods companies in the world. It has also achieved Dividend King status with annual dividend increases for over six decades. That is a record that a company simply cannot achieve without being well led.
You could easily argue that this is a famous dividend growth stock that is on sale right now. No wonder Wall Street recommends buying it.
This drop is normal with Intuitive Surgical
Shares of Intuitive Surgical are down about 25% from their 52-week highs. But that’s actually pretty normal for a stock that’s seen more than half a dozen similar-sized declines since going public. However, this is not particularly shocking, as the manufacturer of surgical robots is a fast-growing business. Investors sometimes get a little ahead of themselves with growth stories like this one. That means 21 of the 32 analysts covering it rate the medical device maker a buy or strong buy.
What’s so special about Intuitive Surgical? It continues to grow its installed base of surgical robots fairly quickly, creating an annuity-like revenue stream in parts and services. To put that in perspective, the company’s installed base of robots grew 14% year-over-year in the second quarter of 2025, leading to a 17% increase in surgical procedures. With parts and service accounting for roughly 75% of sales, each new robot installed is another long-term source of revenue that pushes the top line higher over time.
Today’s Change
(0.93%$4.27
Current price
$462.74
Key data points
Market capitalization
166 billion dollars
Daily range
$456.31 -$466.98
Range 52 weeks
$425.00 -$616.00
Volume
42 thousand
Avg. flight
2.3 million
Gross margin
66,61%
Dividend yield
ON
So this is a normal draw for a stock that still has an attractive growth story. That said, Intuitive Surgical doesn’t pay dividends, so it’s a pure growth play. This is often provided at a premium to the wider market. While the stock isn’t cheap on an absolute basis, its P/S, P/E and P/B ratios are all below their five-year averages, suggesting they’re cheap relative to the recent past. It’s also clearly a growth stock that Wall Street analysts like right now.
A decline but not a elimination of stocks you can buy and hold
With the S&P 500 hovering around all-time highs, it can be hard to find stocks worth buying. But that doesn’t mean it’s impossible. Coca-Cola’s price cut, while relatively modest, has analysts excited about the stock as the Dividend King looks cheaper than it has in a while. The valuation story holds true for Intuitive Surgical as well, even as it continues to rapidly expand its installed base and bolster its annuity-like parts and services business.
No wonder analysts like this story too.