There are two ways to look at stock market corrections, with panic or opportunity. Of course an investor has every right to panic if the company they own faces permanent fundamental decline. Sometimes a short-term hiccup in fundamentals can create opportunities for the investor who takes the long-term view. Here are five companies for your watch list. These companies have suffered from potentially temporary fundamental contraction or some sort of slowdown in growth, resulting in a correction from their 52 week high.

Union Pacific (NYSE: UNP) represents one of two major railroad companies operating on the west coast of the United States. A 6% decline in freight volume in its most recent quarter, largely due to the softening energy sector, specifically coal, soured Wall Street’s sentiment towards the company. As of this writing, Union Pacific trades at a 21% discount from its 52 week high of $124.52 at around $98 per share. As an added bonus, the company pays its shareholders $2.20 per share per year. Investors can benefit from a 2.4% annual yield while waiting for the stock price to appreciate.

Kansas City Southern (NYSE: KSU) is a railroad that operates in the central part of the United States and Mexico. Like Union Pacific, Kansas City Southern suffered a 6% volume loss with a decline in utility coal serving as a major contributor. As a result, Kansas City Southern’s stock price trades 21% below its 52 week high of $126.49 as of this writing. Kansas City Southern also pays its shareholders $1.32 per share per year and yields 1.4% annually.

Hershey Co. (NYSE: HSY) sells the famous Hershey’s candy bar and Reese’s peanut butter cup. It commands roughly 31% of the candy, mint and gum market in the United States. Softening demand in China, due to macroeconomic conditions, hampered the company’s top and bottom line growth in its most recent quarter. Hershey Co. trades 16% below its 52 week high of $111.35 as of this writing. The company pays its shareholders $2.14 per share per year and yields 2.4% annually.

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Polaris (NYSE: PII) sells small and recreational vehicles such as ATVs, snowmobiles, motorcycles, small vehicles and accessories. Difficulties with a painting system hurt motorcycle production, causing the market to worry about Polaris’ ability to meet motorcycle demand. Polaris’ stock price currently trades 14% below its 52 week high of $136.91 per share. The company currently pays its shareholders $2.12 per share per year and yields 1.5% annually.

Genuine Parts Company (NYSE: GPC) sells auto and industrial parts as well as office products. Softness in the industrial segment of the business, stemming from macroeconomic weakness, caused the company to disappoint Wall Street in the most recent quarter. The market has beaten the company’s stock price down 19% from its 52 week high. Currently, Genuine Parts Company pays its shareholders $2.46 per share per year and yields a compelling 2.8% annually.

These companies are largely suffering from temporary imbalances in the global economy or temporary operational missteps. Over the long-term these companies possess the potential for superior gains. They sell highly wanted or needed products and possess the reputation for prudence and innovation.

*William Bias owns shares in Union Pacific, Hershey’s and Genuine Parts Company

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