2 Stocks To Buy Before They Bounce Back

Last week, the stock market delivered a meandering performance. Small-caps bore the brunt of the losses, and only mega-caps finished the week in the green.

Despite this, Monday went off to a strong start. Right now, it’s looking like we’ll make up for the losses sooner rather than later.

In periods like these, finding the right course of action can appear challenging. The first thing to keep in mind is that, as useful as charts like the one we included are, they still paint a broad picture — these are averages, and we’re in search of specifics.

The fact of the matter is that these losses are not evenly distributed — and if you know where to look, you might be able to find quality stocks that have seen unjustified drops in price. In view of the strong start to the week, identifying these mismatches in circumstances like the ones we’re in now can lead to quick, easy wins. However, you do have to act fast.

Thankfully, there’s a great way to cut down on the research time and narrow down your search. It begins with our…

Buy the Dip Stock Strategy

At WallStreetZen, we use a quant model that takes into account 115 proprietary factors to evaluate roughly 4,600 stocks on a daily basis. Those insights come together into a straightforward, user-friendly metric — a stock’s Zen Rating.

Only the top 5% of stocks are given a Zen Rating of A, equivalent to a Strong Buy rating. That’s a great place to start — however, you’re still left with somewhere around 230 stocks to evaluate.

If you want to narrow the search down even more, you’ll want to turn to one of our exclusive Zen Strategies.

Each strategy is a meticulously crafted portfolio that contains just 7 stocks — and today, you’ll get a preview of 2 stocks belonging to one of our best-performing portfolios as of late — the Buy the Dip strategy.

This portfolio has an all-time annual return of 36.37%. However, it’s really starting to pick up steam as we enter the close of 2025 — in November, for example, this strategy delivered a return of 22.60%, far outpacing the benchmark’s 0.19% rally.

Let’s dive in.

8x8 Inc (EGHT)

8x8 provides cloud-based communication and collaboration tools to enterprises of all sizes. EGHT is currently in the top 2% of the stocks that we track, and ranks 56th overall, placing it firmly in the category of stocks with a Zen Rating of A.

First, the dip — in the past 7 days, EGHT has lost 5.02% in value. However, nothing about its growth trajectory has changed. The business has notched 5 earnings beats in a row, and ranks in the top 12% of equities in terms of the Growth Component Grade rating.

In fact, we have a set of pretty terrific placements in a variety of categories. Value is the ace up EGHT’s sleeve — here, it ranks in the 96th percentile. The balance sheet is quite healthy, placing 8x8 in the top 23% for Financials. Finally, we have Sentiment and Safety — where the stock ranks in the top 9% and top 15%, respectively.

8x8 also happens to be the 2nd highest-rated stock in the App industry, which has an Industry Rating of B. From everything we can see, this looks like a textbook overcorrection — and since recovery will probably happen soon, it’s crucial to take advantage while the opportunity is still there.

Tenable Holdings (TENB)

Our second pick for today comes from the cybersecurity industry. Tenable Holdings is all about managing cyber exposure — helping businesses stay aware of and manage their attack surfaces. Right now, TENB is in the top 2% of the stocks that we track, giving it a Zen Rating of A, and ranks 85th overall.

Just like our previous entry, TENB has seen an outsized drop in the past 7 days, losing 5.67% in value. And just like EGHT, it’s on a strong streak — having outperformed analyst estimates for 18 quarters in a row. Tenable Holdings currently stands as the 2nd highest-rated stock in the Software Infrastructure industry, which has an Industry Rating of B. 

We also have a very compelling mix of Value and Growth — in these categories, TENB ranks in the top 16% and top 2%, respectively. At present, 12 Wall Street analysts cover the stock — and their average price target, at $37.58, implies a very hefty 51.61% upside. This places TENB in the top 9% for Sentiment.  To cap it all off, the stock is also in the top 18% for Financials, and the top 11% in terms of Artificial Intelligence — which tells us that it has a strong balance sheet and that our neural network, trained on two decades of market data, has pinpointed it as a likely outperformer going forward.

So, to sum it all up — in both cases, we have large, knee-jerk dips, which have provided a nice discount on high-growth, fairly-valued stocks that stack up well against rivals and peers. It might be more straightforward than the setups we usually highlight — but that doesn’t mean you shouldn’t take advantage of the opportunity.

Interested In More Great Stock Picks?

The 2 stocks highlighted above are just a fraction of what you get from our proven Buy the Dip stock strategy. 

That’s because each day our system recalibrates — and Zen Strategies members get access to the top 7 income stocks based on 115 different parameters that point to outperformance. 

See all Top 7 Buy the Dip stocks here >

However, maybe you’re not a fan of short-selling. Perhaps you would like to see all 11 of our market beating strategies including Growth, Value, Momentum and our coveted AI Factor model. 

Each featuring the top 7 stocks.

Each featuring tremendous performance.

We spell it all out in this timely presentation below that lives up to its name:

77 Best Stocks Now! > 

What to Do Next?

• 77 Best Stocks NOW! >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.