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Buy These 3 Stocks on Any Earnings Dip

History says a knee-jerk, earnings-driven selloff from these names is a prime buying opportunity

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buy sellHave you ever felt the urge to buy into a stock after a poor earnings report crushed it, but couldn’t shake the feeling you were trying to catch a falling knife?

You’re not alone.

As scary as owning a stock through an earnings report can be, it’s not much easier stepping into one immediately after disappointing earnings news — plenty of stocks have established a “from bad to worse” situation following poor quarterly results, after more and more investors had time to digest the numbers and conclude the worst about a company.

On the flip side, there are plenty of stocks that suffer earnings-based hits, only to rebound and move on to higher highs once the dust settles. These are companies that, regardless of the response to one quarter’s earnings, have more going for them than against them, which means the big selloff after earnings is a prime buying opportunity.

Great, but how’s an investor supposed to figure out which companies are part of the latter group? One only has to look back at a stock’s post-earnings history. Sooner than later, their charts recover, reflecting the bigger earnings growth trend rather than one earnings miss. In fact, three stocks stand out above the rest when it comes to shrugging off post-earnings pullbacks and sustaining a march to new highs:

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