This year has served as an unpleasant but necessary reminder that the stock market is not moving in a straight line. Since the start of 1950, there have been more than three dozen double-digit percentage corrections across the entire market. Of course, few have been as painful as the bear market we are currently experiencing.

However, pain historically brings opportunity on Wall Street. When given enough time, all stock market corrections and bear markets in history were erased. This makes bear markets a particularly intriguing time to shop.

One of the best places to start your search for stocks to buy is arguably the Dow Jones Industrial Average (^ DJI 2.47%). The Dow Jones is a 126-year-old index comprised of 30 historically profitable and proven multinational companies. In other words, they are mature companies that have proven themselves over decades (or more than a century), and they could make smart purchases during the decline of the bear market.

The following are three attractively priced Dow stocks that have the ability to turn an initial investment of $400,000 into $1 million by 2028.

Selling power

The first Dow Jones Industrial Average stock with the tools to turn a $400,000 investment into $1 million in the next six years is a provider of cloud-based customer relationship management (CRM) software solutions . Selling power (RCMP 1.70%).

The biggest headwind Salesforce faces is the growing likelihood that the US or global economy will enter a recession. It is not uncommon for growth stocks to see their valuation multiples contract during recessions as investors focus more on traditional metrics (e.g. price-earnings ratio). Fortunately, Salesforce has a definite edge in the CRM software space that commands a premium review.

For those wondering, CRM software is what allows companies to enrich existing relationships with their customers to generate more revenue. It can cover simple tasks, such as resolving product or service issues, to more complex tasks, such as performing predictive sales analysis to determine which customers would be likely to purchase a new product or service. Keep in mind that while CRM software is perfectly designed for service-oriented businesses, it is gaining popularity in healthcare, manufacturing, and finance.

What makes Salesforce special is its absolute dominance of the CRM software space. It has been ranked the top CRM solutions provider for nine consecutive years, according to IDC, and accounted for nearly 24% of global CRM spend in 2021. While Salesforce’s share of the CRM market has grown every year since 2017, its main four competitors were reduced to one combined 19.6% market share. In short, Salesforce won’t be knocked into this double-digit annual growth category anytime soon.

As previously reported, co-founder and co-CEO Marc Benioff has done a phenomenal job of using complementary acquisitions as a source of growth. A steady regime of transactions has expanded the company’s service ecosystem and provided additional cross-selling opportunities.

If Benioff’s prognosis of $50 billion in annual sales by the end of FY2026 turns out to be correct – that would mark just under 100% growth from FY2022 – Salesforce would have a very good chance of generating 150% returns over the next six years.

Boeing

A second Dow Jones stock that has the ability to turn an initial $400,000 investment into $1 million by 2028 is a commercial airline and military aircraft manufacturer Boeing (BA 1.57%).

If there’s one Dow stock that perfectly embodies the battle of short-term risk versus long-term reward, it’s Boeing. Although the COVID-19 pandemic ravaged the airline industry for a period of about two years, many of the company’s problems were self-inflicted. This includes the cumulative grounding of its 737 MAX for two years due to mechanical and electrical issues, as well as managing an approximately 15-month period (May 2021-August 2022) where 787 Dreamliner deliveries were halted. .

The key point here is that it is much easier to correct internal shortcomings than to deal with persistent demand issues. With 787 deliveries on track and the company set to increase 737 MAX production from 27 planes per month at the start of this year to 47 per month by the end of 2023, operating cash flow could really start to pick up. over the next 12 months.

Investors should also take into account that Boeing’s order book remains strong. In the first half of 2022, Boeing had $372 billion in unfilled orders, including more than 4,200 commercial aircraft. With the global energy supply chain somewhat broken in the wake of the pandemic and Russia’s invasion of Ukraine, crude oil, and therefore jet fuel, prices are likely to remain elevated. This could be the spark to encourage commercial airlines to order more fuel-efficient planes.

Another bright spot for long-term investors is Boeing’s defense, space and security division. Since most government contracts span multiple years, revenue and operating cash flow from this segment tend to be highly predictable from year to year.

Own Boeing stock will be requires patience. But if the company can use the next six years to right the ship and just get back to where it was on an operational base before the pandemic, it should be able to deliver a 150% return to its shareholders over its actual level.

Visa

The third Dow stock that can turn $400,000 into $1 million by 2028 is the payment processor Visa (V 1.68%).

One of the most interesting things about Visa is that its biggest headwind right now is also one of its biggest catalysts. Visa is a cyclical business, meaning it fires full throttle when the US and global economy is expanding, and struggles when recessions hit and consumers/businesses spend less. With a number of pundits expecting a US recession, it’s no wonder we’ve seen weakness in Visa shares.

But here’s the thing about being cyclical: it heavily favors the patient. Virtually all periods of expansion last significantly longer than contractions or recessions. It’s what allows Visa to grow at the same pace as the US and global economy over time.

Visa is well positioned for high single digit and low double digit growth domestically and internationally. In the United States, Visa held a 54% share of the credit card network’s purchase volume, in 2020. Of the four major processors in the United States, none gobbled up more share after the Great Recession than Visa. Meanwhile, it has a decades-long opportunity to expand into emerging market regions given that most overseas transactions are still conducted in cash.

A generally conservative management team is also a feather in Visa’s hat. Although it could easily enter the lending arena and generate interest income, Visa chooses to focus on payment processing. This choice means that the company is not directly affected by increased loan delinquencies or credit losses during a recession. Not having to set aside money to cover losses is what allows Visa to emerge from the inevitable economic downturns in such good shape.

It’s rare for a nearly $395 billion company to sustain a growth rate of more than 10% over a long period of time, but that’s exactly what long-term investors get with Visa.