5 Stocks You Should Consider Buying on the Dip
Stock market corrections are a normal part of the investing process. As we’ve seen over the past few weeks, however, the current correction has been exacerbated by the coronavirus outbreak. While there are certainly some sectors that have been hit hard by the virus, there are also many opportunities for investors to buy quality companies on the dip. In this article, we’ll discuss five stocks that fit that bill.
Apple Inc. (AAPL)
Apple Inc. (AAPL) is a great stock to consider buying on the dip. Apple is a global technology leader and its products are in high demand. The company has strong financials, with over $200 billion in cash and marketable securities on its balance sheet. Apple also has a history of increasing its dividend, which makes it an attractive stock for income investors.
Amazon.com, Inc. (AMZN)
1. Amazon.com, Inc. (AMZN) is a great stock to buy on the dip. The company is a leader in the e-commerce space and has a strong track record of growth. Amazon’s stock price has been volatile in recent months, but the company remains a sound investment.
2. Another stock to consider buying on the dip is Apple Inc. (AAPL). Apple is a leading technology company with a history of innovation. The stock price has been volatile in recent months, but Apple remains a strong investment.
3. Another stock to consider buying on the dip is Facebook, Inc. (FB). Facebook is a leading social media platform with over 2 billion active users. The company has been through some tough times recently, but its stock price has begun to recover. Facebook is a sound investment for long-term growth.
Facebook, Inc. (FB)
1. Facebook, Inc. (FB) is a social media giant that offers a great platform for businesses and individuals to connect. FB shares have dipped in recent months due to concerns about the company’s handling of user data. However, FB remains a strong company with a large user base. Businesses will continue to use FB as a way to reach potential customers, and individuals will continue to use the platform to stay connected with friends and family. FB shares are a good buy on the dip.
2. Another stock to consider buying on the dip is Apple Inc. (AAPL). AAPL shares have also dipped in recent months due to concerns about iPhone sales. However, Apple is still a very strong company with a loyal customer base. The iPhone remains one of the most popular smartphones on the market, and Apple also has a growing line of other products, such as the iPad and Apple Watch. AAPL shares are a good buy on the dip.
Microsoft Corporation (MSFT)
1. Microsoft Corporation (MSFT) is a leading technology company that provides a range of products and services, including operating systems, productivity software, and gaming consoles.
2. The company’s share price has dipped in recent months, making it an attractive investment opportunity.
3. Microsoft has a strong financial position, with a market capitalization of over $1 trillion and annual revenue of over $127 billion.
4. The company is also well-positioned for future growth, with a wide range of innovative products and services.
5. Microsoft is a safe investment for long-term growth.
Alphabet Inc. (GOOGL)
1. Alphabet Inc. (GOOGL) is a great stock to consider buying on the dip. The company has a strong financial position and a history of strong growth.
2. Alphabet Inc. (GOOGL) is the parent company of Google, one of the most popular and well-known internet companies in the world. Google’s products are used by billions of people around the globe, and its advertising business is extremely successful.
3. Alphabet Inc. (GOOGL) reported strong earnings in its most recent quarterly report, and its stock price has been steadily rising over the past year.
4. Alphabet Inc. (GOOGL) is a great stock to consider buying on the dip because of its strong financial position, history of growth, and recent earnings report.
Why you should buy stocks on the dip
There are several reasons why you should buy stocks on the dip.
First of all, when stock prices go down, you have the opportunity to buy more shares for the same amount of money. This means that you will own a larger stake in the company, which can be beneficial if the company does well in the future.
Another reason to buy stocks on the dip is that it allows you to average out your cost basis. If you purchase shares of a stock when it is trading at $50 per share and then it drops to $40 per share, your average cost basis for the stock is now $45 per share. This can be helpful if you plan on holding the stock for a long period of time.
Finally, buying stocks on the dip can help to increase your overall returns. This is because you are buying shares at a lower price and then selling them later at a higher price. Over time, this can lead to significant profits.
Overall, there are several reasons why you should consider buying stocks on the dip. By doing so, you have the potential to make more money and increase your overall returns.
Conclusion
If you’re looking for stocks to buy on the dip, these five companies are worth considering. All of them have strong fundamentals and are leaders in their respective industries. They also offer a good mix of growth potential and dividend yield, which makes them ideal for investors who are looking for both capital appreciation and income.