The stock market recently dipped into correction territory, which is defined as a decline of 10% to 20% from its recent peak. At the time of this writing, the Nasdaq Composite is down 9% year-to-date.

It's never fun to see the value of your investments suddenly fall, but it's always worth remembering that a falling stock market works to the advantage of the retirement saver. Your opportunities to make profitable investments increase when the market is down, because that's when stock prices tend not to fully reflect the values of the businesses they represent.

If you're searching for good options to add to your portfolio during this correction, three Fool.com contributors see value in the shares of Costco Wholesale (COST 1.49%), Lululemon Athletica (LULU 0.44%), and Target (TGT 0.19%). Here's why these stocks are solid buys now.

A top stock that doesn't usually go on sale

Jennifer Saibil (Costco): Costco has been an excellent stock to own across almost any given period, and specifically, it has been excellent over the past few years. It's up more than 200% over the past five years, and that doesn't even factor in the impact of its regular quarterly dividends or its special dividends. The discount retailer has paid out $25 in special dividends per share over the past five years alone.

The company reliably produces strong revenue and comparable sales growth, and it's highly profitable. It's driven by its differentiated and compelling membership fee model, which generates loyalty and brings customers into its stores regularly to make the most of their annual memberships.

Renewal rates are consistently above 90%, and they hit 93% in the U.S. and Canada in the 2025 fiscal second quarter (which ended Feb. 16) despite a recent $5 hike to the annual fee. For most members, the money they save by shopping at Costco amply covers the fee, the raise, and then some.

The newly higher fee apparently isn't discouraging new members from joining, either. Costco ended its last quarter with 78.4 million paid household members, a 6.8% increase year over year. Revenue increased 9.1% year over year, and earnings per share climbed from $3.92 last year to $4.02 this year. E-commerce continues to be an important growth driver, as the chain's e-commerce sales increased by about 21% over last year in the quarter.

The main problem with buying Costco stock recently has been its extremely expensive valuation. Even at this writing, with the stock price 14% off its recent peak, Costco trades at a P/E ratio of 54, which is way higher than the typical established retailer.

But this could be the kind of opportunity to buy on the dip that won't come again too soon. If you plan to buy and hold Costco stock for many years, this valuation could be a good entry point.

A reasonably priced growth stock

John Ballard (Lululemon Athletica): When concerns over the economy tank the markets, investors can usually score some great values in the shares of leading consumer brands. Lululemon Athletica has grown its revenue and earnings by around 20% annually over the last 10 years, and the stock was recently trading at a reasonable 23 times earnings.

Lululemon has grown into a mainstream athleticwear brand. While it wasn't immune to the spike in inflation that sapped consumer discretionary spending the past few years, it has been growing sales much faster than Nike, which speaks to its brand power and the opportunities it has ahead.

In January, Lululemon said it expected that revenue for its fiscal 2024 fourth quarter (which ended Feb. 2) would be up 11% year over year, which is below standard for the brand. Management sees an opportunity to improve sales in the U.S. by adjusting its product assortment.

 The company also has untapped opportunities around the world. International revenue was up 33% year over year in its fiscal third quarter, and sales outside the Americas represent just 26% of the business.

Lululemon competes mostly at the premium end of the apparel industry, which allows it to book healthy profits. Over the last four reported quarters (through fiscal Q3 2024), it earned $1.7 billion on $10 billion of revenue. With the brand experiencing strong momentum expanding in international markets, the stock is a no-brainer buy for the long term.

A beaten-down retailer

Jeremy Bowman (Target): Target has been struggling for years. The retail giant's stock price is down by roughly 50% over the last three years as its sales and profits have been challenged by weak consumer spending, internal issues like theft, and a post-pandemic hangover.

Its latest earnings report didn't exactly give investors a reason to feel more confident about the future. Its guidance for fiscal 2025 called for flat comparable sales, net sales growth of 1%, and adjusted earnings per share of $8.80 to $8.90, essentially flat from the $8.86 it booked in fiscal 2024.

Like other retailers, Target is pressured from weakening consumer sentiment and intensifying concerns about tariffs, but management also unveiled a long-term plan based on driving growth over the next five years. In fact, the company predicted that it would grow its total sales by 15% by 2030.

Target sees opportunities to grow through adding new stores, expanding its owned brands, and leveraging its same-day fulfillment services. The company also benefits from a differentiated position in retail, and is working to bring back its Tar-zhe magic.

Following the Q4 earnings report and the broader stock market sell-off, Target seems to have finally hit a floor, as the stock looks like a solid value at its current price of around $110. In addition to trading at a price-to-earnings ratio of just 12, Target is also a Dividend King that currently carries a yield of about 4%, an appealing reward for income investors.

Target's fortunes should eventually improve. In the meantime, investors can take advantage of the recent sell-off to scoop up shares of this proven retail giant while they're on sale.