There are two big challenges for buy-and-hold investors:

1. Identifying great companies and buying their stock (preferably at a decent valuation).
2. Holding those shares through periods of stock market volatility.

The recent sell-off gives investors a chance to do both. So, let's examine two stocks that are great long-term buy-and-hold candidates.

Image source: Getty Images.

1. Spotify Technology

First up is Spotify Technology (SPOT 6.86%).

As of this writing, Spotify stock is down more than 20% from its all-time high of $648. That puts the stock in correction territory, and it presents an excellent buying opportunity for long-term investors.

This is because despite the recent pullback in its stock price, Spotify's fundamentals have not changed. Indeed, its stock soared after its most recent earnings release on Feb. 4 -- and for good reason. The company reported excellent figures, highlighted by:

• A 40% increase in gross profit
• Monthly average users (MAUs) grew by 12% year over year
• Free cash flow skyrocketed by 121% from a year earlier

In short, the company is firing on all cylinders. Its user base is expanding -- the company noted that this most recent was its best-ever fourth quarter in terms of user growth. Similarly, revenue growth remains red-hot. Total revenue increased to 4.2 billion euros, up 16% from a year ago.

Finally, and perhaps most important, Spotify is consistently profitable. 2024 marked the company's first full year of profitability -- an important marker for any growth stock. Spotify's operating income for 2024 was 477 million euros, representing an operating margin of about 11%. That's a far cry from a few years ago, when the company was recording losses in the hundreds of millions of euros.

In summary, long-term investors should tune out the noise and listen to Spotify's fundamentals. It remains a stock with plenty of room to run.

2. Amazon

What has Amazon (AMZN 2.09%) done to deserve its recent treatment in the market?

It's a fair question to ask. Granted, the stock had made new all-time highs prior to this current correction. Yet, as of this writing, the stock has dropped by nearly 20%. That seems excessive -- particularly when compared to the stock's actual valuation.

Consider Amazon's trailing-12-month price-to-earnings (P/E) ratio, for example. As of this writing, it stands at about 34x. Not only is that the lowest P/E ratio for Amazon in the last year -- it's the lowest in the last 10 years.

Does that valuation alone make Amazon a buy? I think it probably does. However, there are other reasons.

Consider that Amazon's e-commerce unit is becoming more attractive by the day to consumers who are feeling the pinch of inflation. The company's large capital expenditure (capex) investments made during the pandemic years are paying off -- making it easier, cheaper, and faster than ever for the company to deliver its billions of shipments each year.

Moreover, as artificial intelligence (AI) and robotics continue to improve, there's even more room for Amazon to find cost savings -- resulting in lower prices for its customers and bigger profits for its shareholders.

In short, with the stock at an all-time low valuation, savvy long-term investors will look to accumulate shares on the cheap.