The ongoing year has provided investors with a glimpse into the volatility of the stock market. After a solid run in 2021, most major equity indices have lost significant momentum year-to-date. Since 1950, the S&ampP 500 index has corrected (a decline of at least 10%) 36 times and is now down over 20% in 2022.

But bear markets provide investors an opportunity to build generational wealth. The length of the average bear market is 289 days which is eventually replaced by a rather elongated bull market.

The Dow Jones Industrial Average index is a good place to begin your stock market research. An index almost 130 years old, the Dow Jones consists of 30 profitable and time-tested businesses. Companies part of the Dow Jones index are mature and have proven their worth over several decades. 

Here, we look at two such Dow Jones stocks that should be part of your portfolio right now.

Salesforce.com

An enterprise-facing cloud-based customer relationship management platform, Salesforce.com (NYSE: CRM) is valued at $160 billion by market cap. The CRM stock has surged 334% in the past decade but is also down 44% from all-time highs, allowing investors to buy the dip.

Typically, growth stocks see their valuations take a massive hit during economic downturns as investors focus on company fundamentals and value stocks. So, it allows investors to buy the dip and benefit from exponential gains when markets stage a comeback.

Salesforce is the undisputed leader in the CRM segment, with a market share of 24% in 2021. The next four players have a combined share of less than 20%, according to research company IDC. 

Its leadership position and big-ticket acquisitions such as Slack and Tableau have allowed 

Salesforce to increase revenue from $13.28 billion in fiscal 2019 to $26.49 billion in fiscal 2022 (ended in January). Wall Street now expects the company to increase its sales to $35.54 billion in fiscal 2024, indicating CRM stock is valued at less than 5x forward sales which is quite reasonable for a growth stock. It is also trading at 28x forward earnings.

Due to its cheap multiple, investment advisor Starboard Value initiated a large stake in Salesforce. The founder of Starboard, Jeff Smith, believes Salesforce is a top bet for long-term investors and is better poised than peers to improve profit margins in the future.

Analysts tracking CRM stock expect shares to rise almost 40% in the next 12 months.

Visa

Visa (NYSE: V) is one of the largest payment processing companies globally. In 2020, it processed $9 trillion in payments across debit cards, credit cards, and other payment methods, well above the payment volume of $4.7 trillion processed by Mastercard (NYSE: MA).

Visa has expanded its ecosystem at an accelerated pace by partnering aggressively with banks and merchants, allowing it to enjoy a competitive advantage. The payments processing industry is asset-light and benefits from high operating leverage. So, Visa can easily improve profit margins and generate robust cash flows on the back of a widening revenue base.

In the last ten years, its net margin has averaged 44% allowing the company to report a free cash flow of $16 billion in the last year. Valued at a market cap of $400 billion, Visa is among the largest companies in the world. It can use its cash reserves to acquire companies, increase dividend payouts and even buy back shares to improve its financials.

Shares of Visa have gained close to 500% in the last decade but are trading 24% below all-time highs. Visa stock is currently priced at a discount of over 25% to consensus price target estimates.

Salesforce (NYSE:CRM)
Historical Stock Chart
From Dec 2022 to Jan 2023

Salesforce (NYSE:CRM)
Historical Stock Chart
From Jan 2022 to Jan 2023