The Nasdaq-100 has fallen nearly 15% in a month, and the Nasdaq Composite recorded its largest single-session point decline. Motley Fool analyst Sean Williams points to two non-tech members of the index, Intuitive Surgical and O'Reilly Automotive, as companies that can withstand the volatility.
The Nasdaq Composite lost 1,422 points on Nov. 5, the largest single-session point decline in its history. The Nasdaq-100 meanwhile reached a nearly 15% correction within a month.
That slide follows an AI-driven bull market that has lasted four years and lifted the major US indexes to several record highs, according to Williams. He argues that a retracement was arguably overdue for high-flying tech stocks, and that the Nasdaq-100 still holds bargains for patient investors.
Intuitive Surgical holds a robotic-surgery niche
Williams describes Intuitive Surgical as a virtual monopoly in robotic-assisted surgical systems, with more than 12,000 da Vinci systems installed worldwide. The high cost of the systems and a lack of competition often lock hospitals and surgical centers in as long-term customers.
Revenue mix matters even more, he writes. Higher-margin sales, including accessories and system servicing, have grown into a majority of net sales, which could let profits grow faster than sales. Ion procedures, from its lung biopsy system, jumped by 31% in the latest quarter.
O'Reilly Automotive leans on an aging vehicle fleet and buybacks
O'Reilly Automotive sells auto parts, and the trend in vehicle age favors it, Williams says. A May 2025 S&P Global Mobility report put the average age of US vehicles at a record 12.8 years, up from 11.1 years in 2012.
The company's 32 distribution centers provide overnight access to more than 156,000 SKUs, and nearly 400 larger hub stores can supply up to 115,000 SKUs the same day.
Williams calls its share repurchase program the factor that sets it apart. Since January 2011, O'Reilly has spent just over $31 billion to retire 1.5 billion shares, cutting its outstanding share count by 62% in less than 16 years and boosting earnings per share.
Source: The Motley Fool
Trading involves risk.
Risk Disclaimer
