5 Best Buy-the-Dip Stocks To Buy Right Now

In this article, we discuss 5 best buy-the-dip stocks. If you want to read our discussion on the stock market performance, head directly to 13 Best Buy-the-Dip Stocks To Buy Right Now. 

5. Philip Morris International Inc. (NYSE:PM)

Number of Hedge Fund Holders: 68

Industry: Tobacco

Philip Morris International Inc. (NYSE:PM), the American tobacco giant, is one of the best 52-week low stocks to invest in. On February 8, Philip Morris International Inc. (NYSE:PM) reported a Q4 non-GAAP EPS of $1.36, missing market estimates by $0.09. However, the revenue climbed 11% year-over-year to $9.05 billion, topping Wall Street consensus by $40 million. Following the release of a mixed Q3 earnings report, Philip Morris International Inc. (NYSE:PM) announced that it entered 2024 with robust momentum, driven by an increase in organic smoke-free net revenue and profit growth.

According to Insider Monkey’s fourth quarter database, Philip Morris International Inc. (NYSE:PM) was part of 68 hedge fund portfolios, compared to 62 in the preceding quarter. Terry Smith’s Fundsmith LLP is the biggest stakeholder of the company, with 15 million shares valued at $1.4 billion. 

Ariel International Fund made the following comment about Philip Morris International Inc. (NYSE:PM) in its Q1 2023 investor letter:

“Finally, tobacco maker, Philip Morris International Inc. (NYSE:PM) declined in the period on concerns related to supply-chain disruptions resulting from the war in Ukraine, which we view as temporary. We believe the favorable economics and margin expansion associated with market share gains from the IQOS brand and Reduced Risk Products should yield value creation opportunities in the years ahead. Furthermore, at current trading levels, we think the company’s operating leverage, pricing power, and free cash flow profile offer a margin of safety.”

4. Charter Communications, Inc. (NASDAQ:CHTR)

Number of Hedge Fund Holders: 69

Industry: Communications 

Charter Communications, Inc. (NASDAQ:CHTR) is a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company provides subscription-based internet, video, mobile, and voice services. It is one of the best 52-week low stocks to consider. On February 2, Charter Communications, Inc. (NASDAQ:CHTR) reported a Q4 GAAP EPS of $7.07, missing Street consensus by $1.70. The revenue of $13.71 billion came in line with market estimates. 

According to Insider Monkey’s fourth quarter database, 69 hedge funds were long Charter Communications, Inc. (NASDAQ:CHTR), compared to 73 funds in the last quarter. Harris Associates is the largest stakeholder of the company, with more than 5 million shares worth $2 billion. 

Here is what Weitz Conservative Allocation Fund has to say about Charter Communications, Inc. (NASDAQ:CHTR) in its Q3 2023 investor letter:

“We swapped the Fund’s Liberty Broadband Corporation (NASDAQ:LBRDK) shares back to Charter Communications, Inc. (NASDAQ:CHTR) (Charter is by far Liberty Broadband’s largest asset), and the combined position was the most notable quarterly contributor. Investor sentiment around broadband’s competitive position became less negative, and the stocks rebounded nicely from what we considered oversold levels.”

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Industry: Healthcare

Johnson & Johnson (NYSE:JNJ) is a global healthcare company that researches, develops, manufactures, and sells healthcare products worldwide. On January 5, Johnson & Johnson (NYSE:JNJ) declared a $1.19 per share quarterly dividend, in line with previous. The dividend is distributable on March 5, to shareholders of record on February 20. Johnson & Johnson (NYSE:JNJ) is one of the best 52-week low stocks to watch. 

According to Insider Monkey’s third quarter database, 81 hedge funds were long Johnson & Johnson (NYSE:JNJ), compared to 84 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 6.36 million shares worth $997 million. 

ClearBridge Large Cap Value Strategy made the following comment about Johnson & Johnson (NYSE:JNJ) in its Q3 2023 investor letter:

“The healthcare space provided some opportunities in the quarter, as we increased our exposure to medical device company Becton, Dickinson as well as large cap pharmaceutical company Johnson & Johnson (NYSE:JNJ). Johnson & Johnson recently spun out its consumer health care business, becoming a more focused yet broadly diversified pharmaceutical and medtech company.”

2. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 85

Industry: Energy 

Exxon Mobil Corporation (NYSE:XOM) is one of the top 52-week low stocks to invest in. On February 2, Exxon Mobil Corporation (NYSE:XOM) announced a Q4 non-GAAP EPS of $2.48, beating market estimates by $0.27. However, the revenue dropped 11.6% year-over-year to $84.34 billion, falling short of Street consensus by $4.48 billion. The company also declared a $0.95 per share quarterly dividend, which is payable on March 11 to shareholders of record on February 14. 

According to Insider Monkey’s fourth quarter database, 85 hedge funds were bullish on Exxon Mobil Corporation (NYSE:XOM), compared to 79 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company. 

In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”

1. Humana Inc. (NYSE:HUM)

Number of Hedge Fund Holders: 86

Industry: Insurance

Humana Inc. (NYSE:HUM) provides medical and specialty insurance products in the United States. The company operates through two segments – Insurance and CenterWell. Humana Inc. (NYSE:HUM) is one of the best 52-week low stocks to buy. On February 15, the company declared a quarterly dividend of $0.885 per share, in line with previous. The dividend is payable on April 26, to shareholders of record on March 29. 

According to Insider Monkey’s fourth quarter database, 86 hedge funds were bullish on Humana Inc. (NYSE:HUM), compared to 81 funds in the last quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 1.5 million shares worth over $688 million. 

Diamond Hill Select Strategy made the following comment about Humana Inc. (NYSE:HUM) in its Q3 2023 investor letter:

“Among our top individual contributors in Q3 were new holding Humana Inc. (NYSE:HUM) and American International Group (AIG). Leading health care benefit plans-provider Humana caters heavily to the senior citizen population, many of whom are enrolled in Medicare Advantage plans through Humana. During the quarter, shares were pressured as several large managed care companies said the senior population is utilizing medical care at a higher-than-expected rate, negatively impacting the medical loss ratio of health plans. Compared to fee-for-service, traditional Medicare plans, Medicare Advantage plans offer relative value and should lead to sustainable growth for Humana over time — so we capitalized on the compelling valuation to initiate a position in the quarter.”

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