2 Timely Buy the Dip Stocks

You might be slightly confused on account of the subject line. After all, the S&P 500 is within striking distance of its all-time high — so where’s the dip we’re speaking of? 

It’s quite simple — recent gains have been far from evenly distributed. 

In tandem with the wider market pushing to new highs, we’ve been witnessing a significant degree of sector rotation. Information technology did quite well last week, while materials stalled out, and consumer staples saw a pullback. 

That isn’t the salient point, however.

Trying to follow those moves seems tempting at first glance. But in most cases, you’re already late to the party. Chasing gains rarely, if ever, ends well. 

Gladly the inverse approach is much more beneficial. That is where you see stocks race to new highs…then endure a pull back…and then ready to run higher once again. That pullback is the perfect time to “buy the dip” to enjoy market beating rewards. .

Buy the Dip Strategy

Our proprietary quant rating system, Zen Ratings, offers an excellent starting point when evaluating equities. 

However, it’s still quite easy to get overwhelmed. On any given day, a grand total of roughly 900 stocks are given a Zen Rating of A or B, equivalent to a Strong Buy rating or a Buy rating.

If you’re after a more curated approach, our Zen Strategies portfolios are the next logical step. 

There are 11 strategies to choose from. Something to suit every type of investor. Then we narrow down to the 7 best stocks for each strategy.

.

Today our focus is on the Buy the Dip strategy. And yes, there are 7 stocks featured in that strategy today (2 of our favorites are shared further below). 

First things first — past performance. 

The Buy the Dip strategy has provided an average annual return of 35.2% since 2003, which blows the S&P 500’s average of 11.3% out of the water.

Since 2020, the strategy has outperformed the benchmark each year. This includes a tremendous +96.59% return in 2024. 

In fact, our Editor-in-Chief, Steve Reitmeister, used this strategy in his personal portfolio to generate $68,264 in real profits over the course of the past 4 months. 

You can take a look at the proof (straight from his Schwab account) in Steve’s recent webinar: 10 Minutes a Month to Beat the Market > 

(P.S. If you’re short on time, it’s around the 39-minute mark of the video)

As shared above, each day this strategy features 7 top stocks. We have selected 2 of them to share with you today.

1. BioMarin Pharmaceutical (BMRN)

BioMarin Pharmaceutical focuses on therapies for rare genetic diseases. It has several high-margin FDA-approved products and maintains a promising development pipeline that spans everything from neurological and metabolic to skeletal condition treatments. 

The biotech business has provided 6 consecutive earnings beats. In the last 3 quarters, we’ve seen earnings per share (EPS) changes, on a year-over-year (YoY) basis of 481.82%, 106.52%, and 123.64%. That’s quite a serious growth trajectory.

In addition, recent clinical testing data has also been positive. Despite these developments, BMRN shares are down 19.73% on a year-to-date (YTD) basis. In the past week alone, the stock’s price has dropped by 5.47%.

At present, the stock ranks in the top 3% of the more than 4,600 equities that we track. To be more precise, it’s rated 123rd overall. This gives it a Zen Rating of A.

To get a better idea of what makes BioMarin Pharmaceuticals an attractive pick, we’ll have to take a look at the stock’s Component Grade ratings. BMRN ranks in the top 19% in terms of Growth, and the top 11% when it comes to Sentiment.

Beyond that, the stock ranks highly per our Artificial Intelligence rating — in the top 9%, to be exact, which means that a neural network trained on two decades of market data has selected it as a likely outperformer.

To wrap things up, BMRN also ranks in the top 8% in terms of Financials, and, crucially, in the top 3% with regard to Value. That last point deserves specifics — the stock is trading at a price-to-earnings (P/E) of 15.72x and a price-to-earnings growth (PEG) ratio of 0.87x.

With that out of the way, what does Wall Street say? The stock is a consensus Strong Buy — it currently has 5 Strong Buy ratings and 2 Hold ratings. BMRN’s average 12-month price forecast is currently at the $95.86 mark, and implies a very generous 77.22% upside.

2. Criteo S.A. (CRTO)

While it initially specialized in retargeting digital ads, Criteo S.A. has expanded — and now it both provides the infrastructure for large retailers to sell ad space and the ability for advertisers to bid on targeted ads on the open web.

AI automation has been a big win for the company. Its Commerce GO! Platform saw 200% quarter-over-quarter (QoQ) campaign volume growth in Q2, and management recently raised full-year guidance following the company’s 9th consecutive EPS beat. 

How big of a dip are we looking at? CRTO shares have lost 8.07% in value in the past five days, which has brought YTD losses up to 44.42%.

Despite the plunge, Criteo S.A. is a highly rated stock. It ranks in the top 4% of the stocks that we track (152nd overall, to be precise), and has quite a well-balanced and impressive set of Component Grade ratings.

When it comes to Safety, the stock ranks in the top 22%. In terms of Growth and Artificial Intelligence, CRTO ranks in the 79th percentile of equities. It truly shines, however, when it comes to Sentiment and Value — categories in which it ranks in the top 5% and top 1%, respectively.

That high Sentiment rating is owed to two factors. First, we have analyst coverage — which tends to the bullish side. CRTO has 5 Strong Buy ratings, 1 Buy rating, and 3 Hold ratings. The average 12-month price forecast currently sits at $39.11, a figure that implies a 77.7% upside. 

On top of that, we have insider buying — 13.86% of the insider transactions tied to Criteo S.A. in the past 12 months have been purchases, indicating a strong degree of bullishness on the side of key company personnel and investors.

So, what about Value? CRTO is currently trading at a P/E of just 8.77x, and a PEG of 0.51x — so it’s practically a steal.

Want More Top Stock Picks?

The 2 stocks that we’ve covered above constitute less than half of our proven Buy the Dip Strategy.

Each day, our system recalibrates — and the scores of each stock, both in terms of overall Zen Rating and specific Component Grade ratings, are recalculated. The top 7 stocks of this specific proprietary model are shared every day with Zen Strategies members.

See Top 7 Buy the Dip stocks here >

If you are not a member…and want to see these 7 stocks…plus discover all 11 market beating strategies…then watch the video replay below. 

Truly this webinar lives up to its name. So please click below to learn how you can spend only…

10 Minutes a Month to Beat the Market > 

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