5 Stocks To Buy On The Dip

Over 20 years ago, I was a young investor and financial advisor who was eager to make smart investment decisions. I had heard about the strategy of “buying stocks on the dip” and decided to give it a try.

One day, I noticed that one of my favorite tech companies, XYZ Inc., had experienced a sudden drop in its stock price due to some negative news in the industry. Intrigued by the opportunity, I did my research and assessed the company’s long-term potential.

Remembering a story shared by my experienced investor friend, Mark, I recalled how he bought stocks of a retail company during a temporary setback and made a significant profit when the stock price rebounded. Inspired by his story, I felt confident in my analysis of XYZ Inc.

With a thorough understanding of the company’s fundamentals and a belief in its potential, I decided to take a risk and buy XYZ Inc. stocks on the dip. I understood the risks involved but believed in the company’s long-term growth prospects.

As time went on, the market regained confidence in XYZ Inc., and the stock price started to rise. My decision to buy on the dip proved to be a wise move. I had purchased the stocks at a lower price, and as the company’s performance improved, so did the value of my investment.

My experience taught me the importance of conducting thorough research, trusting my analysis, and having a long-term perspective when considering buying stocks on the dip. While anecdotes can provide inspiration, it’s crucial to base investment decisions on a solid understanding of the company’s fundamentals and market conditions.

I am very cautious about the market, but many have asked for stocks to buy when the market drops. Here are 5 stocks to watch to buy:

5 Stocks to Buy On The Dip

Yeti (YETI)

Yeti is a company known for its high-quality outdoor products. Despite experiencing a decline in its stock price, the company aims to return to double-digit growth by the fourth quarter of 2023. If Yeti can reaccelerate growth, there is potential for a significant recovery.

Yeti Holdings Inc. (YETI) is a company that designs, markets, and distributes outdoor and recreation products under the YETI brand. They offer a range of products, including coolers, drinkware, equipment, and accessories. Yeti operates in multiple countries and sells its products through various channels, including independent retailers and its website.

Here are some key details about Yeti Holdings Inc. (YETI) stock:

  • Stock symbol: YETI
  • Stock exchange: NYSE (New York Stock Exchange)
  • Market capitalization: $3.297 billion (as of June 7, 2023)
  • Stock price: As of June 7, 2023, the stock closed at $38.05
  • 52-week range: $27.86 to $55.15

Financial Highlights:

  • Revenue: Yeti reported a year-over-year increase in revenue of 3.12% in April 2023.
  • Net income: The net income available to common shareholders decreased by 58.83% compared to the previous year.
  • Profit margin: Yeti’s profit margin is 4.65%.
  • Return on assets: The company’s return on assets is 6.84%.

Etsy (ETSY)

Etsy (Nasdaq: ETSY) is an online marketplace for unique and handcrafted items. While it faced a temporary slump in gross merchandise sales during the pandemic, the company managed to grow revenue through higher fees. With its focus on improving the buyer and seller experience and optimizing shipping, Etsy presents long-term growth potential.

Etsy, Inc. (ETSY) is a company listed on the Nasdaq stock exchange. It operates an online marketplace where individuals and small businesses can buy and sell unique and handcrafted items. Here’s some information about Etsy’s stock:

  1. Stock Symbol and Exchange: ETSY, is traded on the Nasdaq stock exchange.
  2. Stock Price: As of today’s date, the stock price for Etsy is not available in the provided information. Real-time stock prices can be obtained from financial websites or stock trading platforms.
  3. Market Capitalization: As of June 8, 2023, Etsy has a market capitalization of $10.80 billion.
  4. Stock Performance: The stock has experienced a significant drop of 70% from its all-time high, but it has also shown some volatility and changes in response to quarterly earnings reports.
  5. Analyst Ratings and Forecasts: Analysts provide ratings and price targets for Etsy’s stock. The average 12-month target price for Etsy is $126.74, suggesting a potential increase of 44.73%. Analysts generally rate the stock as a “Buy“. It’s important to note that analyst ratings and price targets are subjective opinions and should be considered along with other factors.
  6. Financial Metrics: The provided information does not specifically mention detailed financial metrics for Etsy’s stock, such as P/E ratio, revenue, or net income. These metrics can be found in financial reports and statements published by the company.
  7. Fundamental Analysis: Benjamin Graham’s Value Investor model, which focuses on low P/B and P/E ratios, low debt, and strong long-term earnings growth, rates Etsy favorably with a rating of 43%.

Occidental Petroleum (OXY)

Occidental Petroleum Corporation (OXY) is a stock worth considering for investors looking for undervalued opportunities. The company has shown strong operational performance and profitability, surpassing industry averages.

Occidental Petroleum is a company listed on the New York Stock Exchange (NYSE). It is engaged in the exploration, development, and production of oil and natural gas globally. Here’s some information about Occidental Petroleum’s stock:

  1. Stock Symbol and Exchange: OXY, traded on the NYSE.
  2. Stock Price: On June 7, Occidental Petroleum’s stock closed at $60.04 with a 1.01% increase. In pre-market trading, it stood at $60.14.
  3. Market Capitalization: The company has a market capitalization of $53.54 billion.
  4. Stock Performance: The stock’s 52-week range is $54.30 to $77.13.
  5. Trading Volume: The trading volume for Occidental Petroleum on the given day was 9,036,426 shares, with an average volume of 12,483,403 shares.
  6. Financial Metrics: Occidental Petroleum has a price-to-earnings ratio (TTM) of 6.86 and earnings per share (TTM) of 8.75.
  7. Dividend: The forward dividend yield is 1.21% with a dividend of $0.72. The ex-dividend date is June 8, 2023.
  8. Earnings Date: The next earnings date for Occidental Petroleum is scheduled for July 31, 2023, to August 4, 2023.
  9. Analyst Target: The 1-year target estimate for Occidental Petroleum’s stock is $70.88.
  10. Business Segments: Occidental Petroleum operates in three segments: Oil and Gas, Chemical, and Midstream and Marketing. It is involved in oil and gas acquisition, exploration, and development, as well as manufacturing and marketing basic chemicals and types of vinyl.
  11. Headquarters: Occidental Petroleum is headquartered in Houston, Texas.

Chevron (CVX)

Another undervalued stock pick is Chevron Corporation (CVX). The company has delivered impressive earnings, paid dividends, and engaged in share buybacks. With its position in the growing electric vehicle industry, Chevron presents an opportunity for long-term growth.

Chevron Corporation (CVX) is an American multinational energy company primarily focused on oil and gas [2]. Here’s some information about Chevron’s stock:

  1. Stock Symbol and Exchange: CVX, is traded on the New York Stock Exchange (NYSE).
  2. Stock Price: On June 7, Chevron’s stock closed at $159.83 with a 2.59% increase. In pre-market trading on June 8, the stock had a slight increase of $0.09 (+0.06%).
  3. Market Capitalization: Chevron has a market capitalization of $302.82 billion.
  4. Business Operations: Chevron operates in the energy industry, with activities spanning exploration, production, refining, marketing, transportation, chemicals manufacturing, sales, and power generation.
  5. Headquarters: Chevron Corporation is headquartered in San Ramon, California.
  6. Financial Metrics: Some key financial metrics for Chevron include a profit margin of 15.28%, a return on assets of 10.67%, and a return on equity of 23.37%.
  7. Forward P/E Ratio and Target Estimate: Chevron has a trailing P/E ratio of 8.63 and a forward P/E ratio of 10.52. As of June 8, 2023, the stock had a 1-year target estimate of $189.79.
  8. Employee Count: Chevron has approximately 43,846 full-time employees.

Appen Ltd (APX)

Appen Ltd (APX) is an ASX stock that is well-positioned to benefit from advancements in artificial intelligence (AI). With Nvidia as one of its clients, Appen has the potential to capitalize on the growing demand for AI-related services.

Appen Ltd (APX) is an AI lifecycle company based in Chatswood, Australia. Here’s some information about Appen’s stock:

  1. Stock Symbol and Exchange: APX, traded on the Australian Securities Exchange (ASX).
  2. Stock Price: Appen’s stock closed at 3.49 on June 8, 2023, marking an 83.20% increase from its 52-week low of 1.91.
  3. Market Capitalization: Appen has a market capitalization of $490.43 million.
  4. Business Operations: Appen operates in the AI industry, providing data sourcing, data annotation, and model evaluation solutions. The company serves various sectors through its Global Services and New Markets segments.
  5. Headquarters: Appen is headquartered in Chatswood, Australia.
  6. Financial Highlights: Appen’s recent financial highlights include a negative profit margin of -61.57% and negative returns on assets and equity. The company’s stock experienced a decrease of -3.86% at the close on the latest trading day.
  7. Revenue and Net Income: In the last twelve months, Appen generated AUD 582.54 million in revenue, with a net income of -AUD 358.48 million.
  8. Services Offered: Appen provides data sourcing, pre-labeled datasets, language-based AI solutions, data preparation tools, knowledge graph support services, and more.
  9. Employee Count: Appen employs approximately 1,170 workers worldwide.


The stock market is highly unpredictable, and it’s true that no one can accurately predict its movements. It’s common to come across indicators suggesting a potential recession, but amidst the uncertainties, there are also signs indicating the economy’s resilience given the prevailing circumstances.

When it comes to investing, it ultimately boils down to conducting diligent research and taking risks based on your personal risk tolerance. There are no shortcuts or guaranteed wins in the investment world, despite claims made by some individuals. It’s crucial to acknowledge that stock prices are susceptible to fluctuations, and investing in stocks inherently involves risks. Therefore, it is advisable to engage in comprehensive research, carefully evaluate individual investment goals, and assess one’s risk tolerance before making any investment decisions.

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