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At first glance, it might appear that the impressive returns of the stock market this year would mean that most stocks in the index are enjoying similar performance. Unfortunately, the market doesn't work that way. While the S&P 500 index is up 18% so far in 2024, some well-known stocks within that index saw their stock prices fall at least 28% from their 52-week highs.

Smart investors see that disparity and know it means there are some discounted stocks to be found. The trick, of course, is discerning which of the discounted stocks represent quality companies experiencing a short-term issue (or issues). Not every stock that falls is a wise investment. However, the market can be irrational in the short term, presenting interesting opportunities for savvy investors.

Let's take a look at two stocks that trade down significantly from recent highs and see why they might be good stocks to buy right now.

1. Starbucks

Starbucks (NASDAQ: SBUX) trades down almost 31% from its mid-November 2023 high. Much of the sell-off resulted from weaker-than-expected earnings results. In the most recently reported quarter, fiscal 2024's second quarter (ended March 31), revenue declined 2% year over year and earnings per share (EPS) dropped 14%. This latest report continued a multiquarter streak of slowing growth on both the top and bottom lines.

There's no denying that Starbucks is going through a rough patch. Management attributed the poor quarterly results to a variety of factors, some out of the control of the company (like inflation concerns and a mixed economy). But some factors are simply execution problems. For example, analysis showed many customers were starting orders in the Starbucks mobile app but then abandoning them due to long wait times or lack of product availability. Management cited this as an opportunity for improvement.

It's up to Starbucks to make the necessary adjustments to improve its results, but it's important to remember this is still a beloved consumer brand with a store count that is still growing each quarter.

Starbucks' current price-to-earnings multiple of 20 is near a low that's only been seen a few times in the past decade, providing a margin of safety for investors who buy shares now on the belief that Starbucks can improve results moving forward.

2. Moderna

Moderna (NASDAQ: MRNA) became a household name thanks to it being one of the first companies to successfully develop a vaccine for the COVID-19 virus. What investors may not realize is that until very recently, the COVID-19 vaccine, developed using messenger-RNA advancements Moderna pioneered, was the only product that Moderna had on the market.

That changed in May when the Federal Drug Administration (FDA) approved Moderna's respiratory syncytial virus (RSV) vaccine, another mRNA-based medicine. This approval will bring Moderna's second commercially available vaccine to the market this year and provide a nice boost to the company's revenue, which had stagnated as COVID-19 vaccine sales have fallen off over the past few years.

The RSV market is estimated to be around $10 billion with the majority of the market coming from older adults. Moderna won't capture all of this market opportunity with its product, but the company believes its vaccine is well-positioned to meet the opportunity.

Moderna's stock is up 22% in 2024 but has fallen nearly 29% from its 52-week high set in late May, demonstrating how volatile this stock can be. The recent sell-off could provide an opportunity for investors to take a position in this exciting biotech company.

Moderna has several more products in late-stage trials, so there's certain to be more news in the coming years about additional vaccines. Not all of these will be successful, but Moderna has a robust pipeline so it would be reasonable to take a small position in the company while shares are discounted and watch as more products await FDA approval.

Should you invest $1,000 in Starbucks right now?

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Jeff Santoro has positions in Moderna and Starbucks. The Motley Fool has positions in and recommends Starbucks. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.