3 Stocks to Buy on the Dip

The market closed out October on a rough note . Stocks sold off broadly, with technology taking much of the damage and semiconductor shares getting hit particularly hard.

Days like that create a familiar temptation.

When a stock suddenly gets cheaper, it’s easy to assume you’re looking at a bargain. Sometimes, that’s exactly what’s happening. Other times, the falling share price is simply reflecting a business whose prospects have taken a genuine turn for the worse.

That distinction is what makes buying the dip harder than it sounds. The goal isn’t to buy weakness for its own sake. It’s to find strong companies where the share price has fallen considerably further than the fundamentals would suggest.

Fortunately, there’s a way to separate genuine opportunities from the stocks that are cheap for a reason… 

Buy the Dip Stock Strategy

Our in-house quant system evaluates 4,600 stocks each day through the lens of 115 metrics, split across 7 categories. That data is boiled down into a simple, straightforward metric. That is a stock’s Zen Rating.

Our highest grade, a Zen Rating of A, equivalent to a Strong Buy recommendation, is reserved for those tickers that rank in the top 5% on overall fundamental strength. A bit of quick math tells us that 5% of 4,600 is 230 — and while that is a good start, that is still plenty of tickers to consider on any given day.

That’s not the end of it, however. You can speed things along by taking a look at one of our exclusive Zen Strategies.

This week, the spotlight is on what is currently our best-performing portfolio in 2026. It has secured an 88.33% return since the start of the year, compared to just 10.52% for the S&P 500 in the same timeframe. We’re talking about our Buy the Dip Strategy.

Without further ado, let’s take a closer look at 3 interesting tickers from the portfolio…

SK Hynix (SKHY)

SK Hynix is one of the world’s largest memory-chip manufacturers, producing DRAM, NAND flash, and high-bandwidth memory used in everything from PCs and smartphones to data centers and artificial intelligence systems. Shares remain down roughly 19% over the past month and about 25% below their 52-week high. SKHY currently ranks in the top 5% of all the stocks we track, giving it a Zen Rating of A — and it’s also the 5th highest-rated stock in the A-rated Semiconductor industry.

In terms of fundamentals, there’s a nice cluster of strength here. Momentum ranks in the top 21%, followed by Growth and Artificial Intelligence in the top 11%. Financials come in at the top 5%, while Value is the standout at the top 1% of everything we track. Sentiment and Safety aren’t quite as impressive, but the overall profile remains strong enough to put SKHY comfortably within A-rated territory.

And there’s plenty happening on the business side. SK hynix just posted record quarterly revenue and operating profit. Long-term agreements already cover more than half of the company’s expected production capacity for 2027 and 2028. On top of that, the company plans to return roughly $75 billion to investors for 2026 through dividends and share repurchases.

Calix (CALX)

Calix provides cloud software, networking systems, and managed services used by broadband providers to operate their networks and offer new services to subscribers. Shares are roughly 47% below their 52-week high. CALX currently ranks in the top 4% of all the stocks we track, earning it a Zen Rating of A.

The fundamental profile is well-rounded and strong across the board. In terms of our Artificial Intelligence rating, CALX is in the top 30%. It’s slightly better when it comes to Value, where it ranks in the top 25%. Next up, we have a big jump — Growth comes in at the top 14%, Financials at the top 12%, and Sentiment is strongest of all at approximately the top 6% of everything we track. The read on Safety lands mid-pack, and Momentum trails the rest of the profile, which isn’t particularly surprising for a buy the dip setup. 

Earlier this month, the company’s board increased the already-existing share-repurchase authorization by another $100 million — and recent price action gives the company considerably more room to buy back shares.

Commerce.com (CMRC)

Commerce.com operates an e-commerce technology ecosystem centered around platforms including BigCommerce and Feedonomics, helping merchants manage storefronts, product data, and online sales across multiple channels. CMRC shares are more than 41% below their 52-week high. Despite that weakness, the stock ranks in the top 5% of everything we track, giving it a Zen Rating of A.

The fundamental strengths here begin with Growth, a category where CMRC is in the top 29%. Sentiment lands a touch better, in the top 24%. Financials come in at the top 20%, Safety at the top 16%, and Value is the strongest Component Grade of the bunch at the top 7% of everything we track. Momentum is the least impressive part of the profile, but as we mentioned in the previous pick, that comes with the territory when you’re looking to buy something on the dip.

There’s a very concrete turnaround effort underway behind the scenes. In September, Commerce.com unveiled a restructuring plan expected to generate $60 million to $80 million in annualized cost savings, with the company targeting non-GAAP operating margins of at least 20% beginning in 2027. At the same time, the board authorized up to $50 million in share repurchases over the next two years. If management can deliver on those targets, today’s much lower share price could look considerably different against a leaner, more profitable business.

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 none of the stocks you’ve seen here have caught your eye. Perhaps you would like to see all 11 of our market-beating strategies including Growth, Momentum, Value, 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:

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.