3 Buy The Dip Stocks From This Year’s Top Portfolio

Last week, the S&P 500 marked a 2.07% gain on the back of what is shaping up to be the best earnings season in half a decade. Short-term volatility expectations are at their lowest level in the past 7 months. At the same time, the futures market is broadcasting lowered expectations of a rate increase in September.

That’s a strong streak of positive catalysts — but it does not change the fact that valuations are generally stretched. With strong fundamentals already being rewarded across much of the market, many of the most attractive companies are hardly trading at bargain prices.

It’s precisely that fact that makes the exceptions all the more interesting. When a fundamentally strong stock suffers a temporary pullback without a corresponding deterioration in the underlying business, investors get something increasingly difficult to find in this market: quality at a discount.

The question facing investors is this: how do you screen for real quality — the instances in which the odds of a stock’s price recovering and reaching new highs are stacked in your favor? Well, the answer is actually quite simple — all you have to do is turn to …

Buy the Dip Stock Strategy

Our in-house quant rating system evaluates 4,600 stocks each day by looking at them through the lens of 115 fundamental metrics and 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 recommendation, is only awarded to the stocks that score in the top 5% for overall fundamentals. That’s a solid start, but it does leave about 230 stocks for you to consider on any given day. 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 has performed best thus far in 2026 — our Buy the Dip strategy.

Since the start of the year, this portfolio has already delivered a staggering 91.72% return — more than 7 times the S&P 500’s 12.9% gain over the same period.  With all of that in mind, let’s take a look at 3 exciting tickers from this strategy.

Chagee Holdings (CHA)

Chagee is a Chinese premium tea-house chain. At present, CHA is in the top 6% of all the stocks we track, giving it a Zen Rating of B, equivalent to a Buy recommendation.

The overall fundamental profile is quite balanced. Chagee Holdings shares rank in the top 20% for Growth, thanks to an expected earnings growth rate of 46% compared to the industry average of 14%. When it comes to our Sentiment Component Grade rating, which tracks what the smart money is doing, CHA ranks in the top 18% of stocks — and the average analyst price target currently implies an upside of 27%. 

Up next are Financials, and thanks to a solid balance sheet, the stock earns a place in the top 14% in that category. Lastly, the star of the show is Value — where CHA ranks in the top 6%.

As far as weaknesses go, Safety and Momentum come in weaker than average — which is to be expected when we’re looking at stock that has seen a dip as large as CHA. The dip in question is a 53% decline on the 1-year chart. While it might seem daunting at first glance, that dip is the entire opportunity — solid growth prospects, a strong balance sheet, and bullish analysts, all converging in a stock that’s now trading at a bargain price.

Workiva (WK)

Workiva provides enterprise SaaS for financial reporting, SEC filings, audit, risk/compliance, and sustainability reporting. WK ranks in the top 5% of everything we track, giving it a Zen Rating of A, equivalent to a Strong Buy recommendation.

After a 24% rally in the past 3 months, the stock ranks in the top 29% when looking at Value. Not exceptional, but above average. Safety is a touch better, clocking in at the top 28%. After that, Sentiment and Financials are clustered together — with the stock ranking in the top 10% for both categories. Finally, the stock’s strongest suit is Growth — a category where it ranks in the top 4%, with earnings forecast to grow at a rate of 73% per year, in contrast with the industry average of 28%.

Just like our previous pick, Momentum is the weakest link here, but there’s a catch. We mentioned the 24% rally in the past 3 months — but the reason why this is in the Buy the Dip column is the fact that the stock is still down 14% on the 1-year chart, and is trading at roughly half its December 2021 high. The recovery is already in motion — supplemented by an 8.4% rally since the stock’s last earnings report on August 4, which marked the 6th consecutive EPS beat.

VTEX (VTEX)

Our last pick, VTEX,  provides cloud-based enterprise ecommerce infrastructure, combining online storefronts, marketplaces, order management, B2B commerce and retail-media tools in one platform. VTEX ranks in the top 2% of all the stocks we track, and its the 2nd highest-rated stock in the B-rated App industry.

The Value Component Grade rating comes in above average, in the top 26%. The same holds true for Safety, where VTEX is in the top 24%. In terms of our Growth rating, the stock is in the top 28%, plus it also clocks in at the top 13% for Financials. Where it truly shines, however, is Sentiment — in this category, VTEX is in the top 1%, which indicates strong smart money interest.

While Momentum is predictably the weakest rating on the board, VTEX actually scores above the midline here — in the top 48%, so just slightly above average. The stock is still down 29% on the 1-year chart, despite notching 6 earnings beats in a row. The valuation is still enticing, the business is executing, and in Q2 they’ve repurchased around $23 million of their own stock, in tandem with securing several high-profile clients such as Dolce & Gabbana and Iberdrola.

Interested In More Great Stock Picks?

The 3 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 buy the dip 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 tremendous performance

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

10 Minutes a Month to Beat the Market > 

What to Do Next?

• 77 Best Stocks NOW! >
• Options Trading with the Zen Ratings >
• 2 New Stocks to Buy from Steve Reitmeister >

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