3 Timely Buy the Dip Stocks

Last week brought a lot of volatility — right now, things seem a touch calmer, as major indices have returned to an upward trajectory.

Environments such as these often see investors engage in profit-taking — where they either trim or exit their positions to lock in hard-earned gains. 

This exerts downward pressure on the stock prices of otherwise healthy, growing businesses — and it can provide a great entry point for buyers, who get to take advantage of the newer, discounted price. 

When all goes well, the stock bounces back (usually reaching new highs), and you’re in the green.

If this appeals to you, then time to discover our coveted…

Buy the Dip Stock Strategy

By taking into account 115 unique factors, our quant rating system provides both a thorough and easy-to-use overview of a stock’s attractiveness via a single metric — its Zen Rating.

We track just over 4,600 stocks — and those that rank in the top 5% according to the aforementioned 115 factors are given a Zen Rating of A (Strong Buy).

Just like that, we’ve immediately narrowed the search down significantly — but this still leaves us with roughly 230 interesting stocks. However, when we’re talking about an approach like Buy the Dip which requires precise timing…then this is too broad a scope.

Thankfully, we don’t have to stop there — instead, we simply turn our attention to the 11 rigorously backtested portfolios — our expertly curated Zen Strategies.

Every single one of these portfolios consists of just the top 7 stocks — carefully selected to deliver outsized gains. Today, our focus will be on the Buy the Dip strategy.

This portfolio has an all-time annual return of +35.32%. Even more impressive is the +96.49% gain last year. 

Today, we’ll be taking a look at 3 stocks from this portfolio. Each has impressive growth prospects and currently trading at a healthy discount. Now is the time to strike before the rest of the market catches on…

Five9 (FIVN)

Five9 provides cloud software that other businesses use in sales, marketing, and customer service. FIVN currently ranks in the top 4% of stocks on the whole, and it has seen a pretty significant dip in the past month, having lost 6.44% in value. However, it’s pretty clear that this is an overreaction — the company has provided a staggering 17 earnings beats in a row, with the last 4 all delivering double-digit EPS growth.

The only rational reason to jump ship in light of such a streak is if things start slowing down — but Wall Street is expecting to see earnings grow at 201.88% per year — roughly nine times the industry average, and approximately five times the wider market average. This puts FIVN in the top 4% of stocks in terms of Growth.

Five9 shares also rank in the top 4% when it comes to Value, seeing as how the stock is trading at a price-to-earnings growth (PEG) ratio of 0.9x. Wall Street’s average 12-month price forecast, based on the coverage of 12 analysts, implies a pretty hefty 44.6% upside — placing FIVN in the top 11% when it comes to Sentiment.

There’s simply nothing to suggest that the company’s growth trajectory has deteriorated — and Wall Street has been banging the drum about FIVN for a while now. It’s only a matter of time before the markets realize that this is a steal — and if the next earnings call, due November 6, ends up being a success, this could happen sooner rather than later.

Ardent Health (ARDT)

Ardent Health operates a number of hospitals and outpatient sites in the US. ARDT currently ranks in the top 3% of the stocks that we track — 115th overall on our list, and is the 3rd highest-rated stock in the Medical Care Facility industry, which has an Industry Rating of A.

This is yet another case of stock price fluctuations not necessarily reflecting the health of a business. The company is steadily growing, and recently purchased 18 urgent care clinics to expand its footprint in the Midwest and Southwestern United States.

ARDT has lost 10.27% in value since the start of the year — however, the past 3 quarters have all been EPS beats, with strong double-digit growth. The average analyst forecast currently implies a 17.03% upside, and there’s a good reason as to why that is: Ardent Health has all the necessary “ingredients” to outperform going forward.

The business has a strong balance sheet, and ranks in the top 9% in terms of Financials. Historically low Beta and a mature, stable business model put it in the top 6% in terms of Safety. Last, but not least, we have solid growth prospects at an appealing valuation — the stock ranks in the 82nd and 98th percentile, respectively, in terms of Growth and Value.

Just like in the case of our previous pick, it might be wise to get in early — Ardent Health’s next earnings call is scheduled for November 12, exactly two weeks from now.

Bioventus (BVS)

Our last pick for today is the 38th highest-rated stock according to our system. Bioventus is a medical device company that has seen consistent growth — to be precise, it has provided 9 consecutive earnings beats, with EPS growth in the double digit for the last 7 quarters. Despite strong execution, industry-wide issues seem to have soured the market’s mood regarding BVS — the stock is down approximately 8% in the past 6 months.

Even among other stocks with a Zen Rating of A, BVS is a rare sight — it stands out by being quite well-rounded in terms of its Component Grade ratings. Bioventus shares are in the top 11% in terms of both Sentiment and Safety, as well as the top 8% when it comes to Financials.

However, just like with our previous picks, the main point of interest here is growth prospects relative to valuation. In this case, we have a stock that’s in the 82nd percentile with regard to Growth, and the top 5% in terms of Value.

If the company’s current trajectory holds steady, that 8% loss will be erased sooner or later — and since the next earnings call is due November 11, less than two weeks from now, chances are that it will end up happening sooner.

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 7 top Buy the Dip stocks based on 115 different parameters that point to outperformance. 

See all Top 7 Buy the Dip stocks here > 

However, maybe “Buy the Dip” is not your cup of tea. 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:

10 Minutes a Month to Beat the Market > 

What to Do Next?

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

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