In this article, we will take a look at the 5 best buy-the-dip stocks to buy now. To see more such companies, go directly to 12 Best Buy-the-Dip Stocks To Buy Now.
5. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 72
General Motors Company (NYSE:GM) shares received a hammering in October amid UAW strikes and the company’s decision to suspend its entire Cruise operations unit after a hit-and-run event involving its driverless car. However Barclays recently upgraded GM stock, citing “historically cheap” valuation. Barclays analyst Dan Levy said:
“While we acknowledge that structural concerns aren’t likely to dissipate any time soon, we believe even a modest reversal of sharply negative sentiment could drive attractive upside.”
Insider Monkey’s database of 910 hedge funds shows that 72 funds were long GM as of the end of the second quarter of 2023. The biggest stakeholder of the company was Natixis Global Asset Management’s Harris Associates which had a $1.5 billion stake in the company.
Patient Capital Opportunity Equity Strategy made the following comment about General Motors Company (NYSE:GM) in its Q2 2023 investor letter:
“We like other names mostly ignored by the market for similar reasons. Names like Expedia (EXPE), General Motors Company (NYSE:GM), and Delta Air Lines. These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”
4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 73
Chevron Corporation (NYSE:CVX) stock took a beating in October after the company posted quarterly results that disappointed the Street. Chevron Corporation (NYSE:CVX) is struggling with several issues like drilling problems in Texas, losses from overseas refining and rising costs in Central Asia. Nonetheless Chevron Corporation (NYSE:CVX) is a Buy for the long term.
Bank of America upgraded Chevron Corporation (NYSE:CVX) to Buy from Neutral with a $200 price target.
3. Paypal Holdings Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 86
Paypal Holdings Inc. (NASDAQ:PYPL) shares have lost about 30% year to date. But Paypal Holdings Inc. (NASDAQ:PYPL) investors had something to cheer in October after the company posted strong Q3 results. GAAP EPS in the period came in at $1.30, beating estimates by $0.07. Revenue in the quarter jumped 8% year over year to $7.4 billion, beating estimates by $20 million. Total payment volume in the quarter jumped 15% to reach $387.7 billion.
Of the 910 hedge funds in Insider Monkey’s database, 86 hedge funds had stakes in Paypal Holdings Inc. (NASDAQ:PYPL). The most significant stakeholder of Paypal Holdings Inc. (NASDAQ:PYPL) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $381 million stake in the company.
Wedgewood Partners made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2023 investor letter:
“PayPal Holdings, Inc. (NASDAQ:PYPL) was a detractor from performance during the quarter. Total payment volume grew +11% while revenues grew +8% – both FX-neutral. Adjusted operating earnings grew +20%. E-commerce industry sales trends have normalized back to their pre-pandemic trend of growth, with high-margin branded payments keeping track with the industry. Despite this, investors continue to be concerned that PayPal’s fast-growing private-label payments solutions will dilute Company returns. However, payments is a very scalable business, and the Company will be able to manage both private label and branded for attractive returns and double-digit growth. While multiples in the payment industry have significantly compressed, especially after the multi-year process of being added to the index @inancial sector, PayPal’s businesses are substantially different enough from traditional spread-based businesses; in addition to possessing much more compelling growth drivers, PayPal’s well below market multiple should revert to its higher, historical average.”
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 88
Johnson & Johnson (NYSE:JNJ) has been struggling with legal claims against it regarding baby talc powder. Johnson & Johnson (NYSE:JNJ)’s chief litigation lawyer said the company was mulling over the possibility of initiating a bankruptcy filing. Johnson & Johnson (NYSE:JNJ) came close to its 52-week lows in October. However, the stock is loved by many due to its consistent dividend hikes, a diverse pipeline and strong fundamentals.
As of the end of the second quarter of 2023, 88 hedge funds out of the 910 funds tracked by Insider Monkey reported owning stakes in Johnson & Johnson (NYSE:JNJ). The biggest stakeholder of Johnson & Johnson (NYSE:JNJ) was Ray Dalio’s Bridgewater Associates which owns a $527 million stake in the company.
1. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 90
Bank of America Corporation (NYSE:BAC) shares have lost about 27% over the past one year. Bank of America in October posted Q3 results. EPS in the quarter came in at $0.90, surpassing the Street’s estimate of $0.82.
A total of 90 hedge funds tracked by Insider Monkey had stakes in Bank of America Corporation (NYSE:BAC). The most significant stakeholder of the company was Berkshire Hathaway of Warren Buffett which had a stake worth over $29 billion in Bank of America Corporation (NYSE:BAC).
You can also take a peek at 11 Undervalued Mid Cap Stocks To Buy According to Analysts and 12 Most Important Holidays in the US.
