While a weak open on Friday has served to blunt some of the recent bullishness we’ve seen on the part of investors. The May jobs report exceeded expectations, but also fueled expectations that a rate hike is in the cards by the end of the year. While the futures market reflects that most investors expect no change in the June meeting, a hike in December is now a material possibility.
With that being said, the broader backdrop remains constructive. The worst-case scenarios vis-à-vis the Iran war or a potential recession seem ever-unlikelier as time goes on. In addition, a lot can happen by December — for now, we’re looking at a situation that says “higher for longer” rather than “hikes soon” with regard to interest rates.
All of these factors converge in a very particular and interesting sort of setup. Stocks that have solid fundamentals but have taken a beating will likely see even greater losses in the days to come, without any sort of particular fundamental justification. Many of them could easily veer into undervalued territory, and the snap back into an uptrend could provide ample gains. The question is, how do you identify the stocks with the fundamental strength to support that bet? The best place to start is …
Our proprietary quant rating system looks at 4,600 stocks on a daily basis, and evaluates them through a framework of 115 fundamental factors. Those insights are distilled into a clear, concise metric — a stock’s Zen Rating.
A Zen Rating of A, equivalent to a Strong Buy rating, is only awarded to the stocks that score in the top 5% for overall fundamentals. A great start as far as screening goes, but it does leave roughly 230 stocks to consider. You can narrow the search down even further — by making use of one of our exclusive Zen Strategies.
There are 11 strategies in total — each is a carefully-constructed portfolio, consisting of just 7 stocks. With recent developments in mind, today we’ll be taking a look at the strategy that performed best thus far in 2026 — our Buy the Dip strategy.
Since the start of the year, this portfolio has already delivered an 81.04% return. In the past 30 days, it has netted a 7.94% gain, far outpacing the S&P 500’s 3.83% rally in the same timeframe. Now, let’s look at 2 recent additions to this portfolio.
Our first pick is OppFi, a $720 million market-cap fintech lender. OPFI currently ranks in the top 5% of the stocks that we track, giving it a Zen Rating of A. So, how severe is the dip? OppFi shares have lost 12.6% in value over the past 30 days.
Although that dip is nothing to scoff at, the fundamental picture here remains exceptionally strong. Thanks to 13 consecutive quarters of beating EPS estimates, the stock ranks in the top 19% when it comes to the Safety Component Grade rating. The valuation is another strong suit — when we look at the 21 different factors that make up our Value rating, OPFI ranks in the top 5%. With that said, the stock’s standout rating is Financials. Thanks to an exceedingly healthy balance sheet, it ranks in the top 1% of all the stocks we track in this category.
The drawback, predictably, is a below-average Momentum score — but that simply comes with the territory when buying the dip. Growth and Sentiment read as firmly above-average, but not exceptional, although it should be noted that the analyst picture is quite positive. At present, the average price target from Wall Street analysts implies a 53% upside from current levels.
Put it all together, and we have a sizable discount, strong execution, bullish analysts, and a fortress balance sheet. OPFI has also recently authorized a $40 million stock buyback program, and it has acquired BNC National Bank (which has approximately $1.1 billion in assets and $1 billion in deposits). Those are the cherries on top — a floor under the stock and a serious structural acquisition.
Our second pick, Stantec, is an $8.59 billion engineering and architecture consulting firm that manages infrastructure projects across water, transportation, and energy. STN ranks in the top 4% of all the equities we track, and it’s the 4th highest-rated stock in the Engineering & Construction industry, which has an Industry Rating of A.
First off, the dip. Stantec shares have lost 17.2% in value over the past 30 days. Prices have since stabilized, following an earnings beat of May 13 — the 9th such beat in a row. As far as fundamentals go, STN ranks in the top 4% on the whole, giving it a Zen Rating of A.
The overall fundamental picture is quite strong. Stantec ranks in the top 17% for Growth and the top 15% for Value. Even on its own, that’s a rare combination — but thanks to that strong pattern of outperforming estimates, the stock also ranks in the top 11% for Safety. Another strong point is the Artificial Intelligence Component Grade rating. It uses our in-house neural network, trained on more than 20 years of market data, to identify likely outperformers. In that category, STN is in the top 20%.
There are no major fundamental weaknesses here, apart from a below-average Momentum score. Looking at Sentiment, the stock is in the top 29%, and with regard to Financials, it’s in the top 21%. Not outstanding, but certainly above average.
STN shares are currently rangebound, bouncing between $72 and $76. The 17.2% dip is quite significant, particularly for such a strong fundamental profile, but more to the point, it seems as if the downtrend has ceased, and a potential breakout to the upside might be in the cards sooner rather than later.
The 2 stocks highlighted above are just a fraction of what you get from our proven Buy the Dip strategy.
That’s because each day our system recalibrates — and Zen Strategies members get access to the top 7 artificial intelligence stocks based on 115 different parameters that point to outperformance.
See all Top 7 Buy The Dip stocks here >
However, maybe waiting for the fundamentals to lead to recovery isn’t your speed. Perhaps you would like to see all 11 of our market beating strategies including Growth, Value, Momentum or perhaps even Income stocks.
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:
What to Do Next?
Want to get in touch? Email us at news@wallstreetzen.com.