3 Top Stocks That Just Went on Sale

The widely followed Dow Jones Industrial Average has delivered a positive return about two thirds of the time over the last century. And through all those ups and downs, the market has historically averaged around a 10% annualized return. At that rate, a $10,000 investment turns into $1.45 million after 50 years.

This is why sticking with the best companies is all you need to build generational wealth in the stock market. Market sell-offs are the ideal time to buy best-of-breed companies in their respective industries. The following are some of the world's best businesses that should deliver above-average returns for many years.

Shares of Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are down 25% year to date, which has put the dominant search provider on sale. At a price-to-earnings (P/E) ratio of 19.5 based on this year's consensus earnings estimate, Alphabet can deliver good returns for investors from this historically low valuation. Note that the average stock in the S&P 500 index has averaged around a 16 P/E ratio over the last century, which makes Alphabet look undervalued given its dominant position in online advertising.

Source Fool.com