Top 3 “Buy the Dip” Stock Ideas

As the bear market gets more ferocious, it is starting to reveal some long term buying opportunities that are hard to resist.

No…I am not saying that now is the exact moment to strike. But all investors should be putting together their wish list of “buy the dip” picks to start accumulating when the time finally arrives over the next few months.

3 quality companies that come to mind for me right now are Tesla (TSLA), PayPal (PYPL) and Facebook (FB). None of these are shocking choices. But it would be good to appreciate why we may be close to jumping in at this level.

Tesla (TSLA – Get Rating)

TSLA was recently instructed to shut down its California plant as its business is considered nonessential.  However, this halt is only temporary.  It is only a matter of time until the private sector is back up and running at full bore. The sky is the limit once TSLA operations resume at 100% capacity as it is hard to ignore that they are the world’s best car company.

But at nearly $1,000 per share, TSLA was not the best investment. Now under $400 it has certainly gotten my attention as recent earnings reports have shown that they are righting past wrongs. Meaning instead of earnings miss after earnings miss, they are now crushing earnings with higher projections for the future. That is the sign of a company that is ready to outperform.

Today, or very soon, just might be the perfect time for those sitting on the sidelines to hop on board the TSLA train and ride it new heights.  Don’t forget that Tesla recently started delivering its much-anticipated Model Y vehicle, providing nervous investors with much-needed hope. Though it is possible some consumers will shy away from TSLA luxury vehicles during and shortly after the coronavirus outbreak, there general society-wide trend is toward green, electric vehicles as opposed to automobiles reliant upon fossil fuel.  Get TSLA on your wish list today and be ready to strike for the likely gains that will unfold in the years to come.

PayPal Holdings (PYPL)

The coronavirus is pushing most everyone toward work-from-home setups.  Furthermore, many more people around the globe are now shopping from the comfort of their virus-free couch and transmit money to others in a digital manner.  PYPL stands to benefit from this further transition toward online payments.

Though PYPL is extending its reach to in-store payments, the bulk of its customers engage in commerce on the web.  The payment processing company is quickly approaching the one billion user benchmark. That makes this PYPL and easy buy the dip option to enjoy gains as the next bull market unfolds. The 5 Star analyst from Nomura certainly agrees as he recently reiterated his Buy rating with $139 target. That is serious upside when PYPL is close to $90.

Facebook (FB)

Take a moment to think about what people are doing…and will be doing in the next weeks and months while quarantined.  The majority of people will flock to social media, TV and video games.  In other words, FB is in the catbird seat amidst the coronavirus pandemic.

Even if the social media giant’s ad revenue dips due to a reduction in business and consumer spending, it will draw in that many more new users simply because people are stuck indoors without much to do but stare at their screens.  However, there is a good chance FB will receive an influx of new advertisers as that many more companies transition from prime time ads aired during nightly sports events to digital ads on websites and social media platforms such as FB.

FB is especially attractive at its current price which is well down from the peak. The 5 Star analyst from JP Morgan, Dough Anmuth, was not shy pounding the table on FB today as a great growth and value pick. Doug gave a fresh Buy rating and $225 target price. That is AMPLE reason to consider it as a buy the dip pick here under $150.

Want more great stock picks? Then check out these additional resources:

All POWR Rating A (Strong Buy) Stocks

Reitmeister Total Return portfolio

TSLA shares . Year-to-date, TSLA has declined -13.65%, versus a -25.43% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More…

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