5 Best Buy-the-Dip Stocks To Buy Now

In this article, we will take a look at the 5 best buy-the-dip stocks to buy now. If you want to see more stocks in this selection, go to the 11 Best Buy-the-Dip Stocks To Buy Now.

5. BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX)

Number of Hedge Fund Holders: 34

BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) is a Durham, North Carolina-based commercial-stage biotechnology company that is focused on developing therapeutics through its proprietary discovery engine.

In a research note issued to investors on December 15, Ken Cacciatore at Cowen assigned BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) stock an Outperform rating with a target price of $25. The analyst believes that the management showed its intent to preserve capital as it discontinued the development of BCX9930 due to a lack of commercial viability. BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) pulled the plug now instead of waiting until mid-2023. This will now shift the company’s complete focus to the development of complement inhibitor BCX10013. The analyst added that despite the discontinuation, BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) has the potential to create value and become an attractive potential takeover target for big pharma companies.

As of Q3 2022, BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) was held by 34 hedge funds.

4. DISH Network Corporation (NASDAQ:DISH)

Number of Hedge Fund Holders: 40

DISH Network Corporation (NASDAQ:DISH) is an Englewood, Colorado-based provider of direct-broadcast satellite provider, over-the-top IPTV service, and consumer wireless service. The company provides its services to 19 million customers in the US and has a headcount of over 14,000 employees as of 2022.

Michael Rollins at Citi assigned DISH Network Corporation (NASDAQ:DISH) stock a target price of $33 along with a Buy rating on November 4. The analyst highlighted that the company reported continued progress related to its 5G network rollout. Market observers believe that DISH Network Corporation (NASDAQ:DISH) can deliver long-term value to its shareholders if it can capitalize on the postpaid mobile opportunity through Boost Infinite next year and prove that the company can operate a rapidly growing postpaid business.

As of Q3 2022, 40 hedge funds reported owning a stake in DISH Network Corporation (NASDAQ:DISH).

3. EQT Corporation (NYSE:EQT)

Number of Hedge Fund Holders: 57

EQT Corporation (NYSE:EQT) is a Pennsylvania-based natural gas exploration and production (E&P) company with a best-in-class presence in the Appalachian Basin. The company is the biggest natural gas producer in the US.

Sam Margolin at Wolfe Research upgraded EQT Corporation (NYSE:EQT) stock from a Peer Perform to an Outperform rating with a target price of $59 on December 14. The target price reflects a potential upside of over 55% from the closing price as of December 27. The analyst sees an attractive entry point in the stock that is driven by fear due to the risk associated with natural gas prices. The industry is currently focused on giving priority to generating a capital return through a disciplined allocation of capital expenditure. However, higher service cost is expected to result in increased capital expenditure for companies in Q4 2022 and 2023.

Here’s what ClearBridge Investments said about EQT Corporation (NYSE:EQT) in its Q3 2022 investor letter:

“We also added natural gas company EQT (NYSE:EQT) in the energy sector. As one of the lowest-cost domestic producers, EQT stands to benefit from its position as a leading supplier of natural gas to a world suffering from critically low energy reserves. The Russian invasion of Ukraine and threats to hold natural gas exports hostage have spurred a surge in European energy prices, generating long-term agreements by European countries to purchase U.S. natural gas.

This strong demand and elevated prices have helped EQT strengthen its balance sheet and position it to take advantage as opportunities emerge for natural gas to plug the gaps in the global energy transition from fossil fuels to renewables.”

2. Marvell Technology, Inc. (NASDAQ:MRVL)

Number of Hedge Fund Holders: 58

Marvell Technology, Inc. (NASDAQ:MRVL) is a Santa Clara, California-based producer of semiconductors and data infrastructure related to computing, networking, security, and storage.

Christian Schwab at Craig-Hallum gave Marvell Technology, Inc. (NASDAQ:MRVL) stock a Buy rating with a target price of $63 on December 2. The analyst acknowledged the Q3 2022 results to be in line with his estimates. The company’s downward revision in guidance for Q4 2022 has been attributed to a weakness in the Chinese networking industry due to COVID-19-related restrictions and lockdowns. Marvell Technology, Inc. (NASDAQ:MRVL) gave a Q4 2022 revenue and EPS guidance that was 13% and 26% lower than the consensus forecasts, respectively. There is a widespread belief that Marvell Technology, Inc. (NASDAQ:MRVL) stock is currently hovering around the bottom of the cycle.

Carillon Tower Advisers discussed Marvell Technology, Inc. (NASDAQ:MRVL) in its Q2 2022 investor letter. Here’s what the firm said:

“Marvell Technology, Inc. (NASDAQ:MRVL) provides infrastructure semiconductor solutions. Investors have recently become concerned about the semiconductor cycle and how demand for Marvell’s products will fare in a slowing economic environment. We remain confident that the company’s portfolio of products is extremely important in parts of the datacenter server market, which remains healthy and possesses long-term secular trends. The company also has secured strong contract wins in upcoming global 5G wireless infrastructure build-outs, which are generally insulated from macroeconomic pressures. With supply chain issues easing, we believe Marvell remains in a strong position to post continued robust growth.”

As of Q3 2022, Marvell Technology, Inc. (NASDAQ:MRVL) was held by 58 hedge funds.

1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 105

Alibaba Group Holding Limited (NYSE:BABA) is an Hangzhou, China-based diversified technology company founded in 1999 that specializes in e-commerce and cloud computing.

The overhang of a possible delisting from the US stock markets is eroding as the US accounting authority commented that it had been provided with complete access to inspect and investigate Chinese firms for the first time. Furthermore, the ease of the zero-COVID policy in China is expected to play in favor of the e-commerce giant. In a research note issued on November 18, Fawne Jiang at Benchmark assigned Alibaba Group Holding Limited (NYSE:BABA) stock a target price of $180 along with a Buy rating. The analyst noted the weakness in Q2 FY23 results and soft guidance for Q3 FY23 due to challenging macroeconomic circumstances is expected to adversely impact growth. However, experts believe that FY24 should be positive for Alibaba Group Holding Limited (NYSE:BABA) with a return towards the growth of customer management revenue (CMR).

Here’s what Longleaf Partners said about Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2022 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA), the largest e-commerce and cloud services provider in China, was the top detractor for the quarter in the face of China and Hong Kong macro concerns. The biggest value driver for Alibaba is domestic consumption, which has been softening in recent months in the face of property sector weaknesses, continuing pressure from the government’s zero-COVID policy and a significant spike in youth unemployment rates (reaching almost 20% in the quarter). We have begun to see some progress, with policies announced to make more financing available to developers to finish uncompleted units. Additionally, COVID containment measures are beginning to ease with Hong Kong recently announcing an end to all quarantine requirements for international arrivals. While we recognize that top-line growth may be constrained in the near term, we believe Alibaba is still well positioned to grow its bottom line at a double-digit rate in coming quarters by reducing costs and reducing spend on strategic initiatives. Our management partners are going on offense through smart capital allocation and increased the buyback authorization in the quarter to $25 billion dollars.”

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