Ongoing dynamic market fluctuations provide an ideal environment to hunt for bargain stocks. “Buying on the dip” is a tactic savvy investors employ to capture quality stocks while they’re momentarily undervalued.
Here, the article lists three bargain stocks with the potential for remarkable growth and resilience. Though disparate in their industries, these companies are primed for strategic accumulation.
The first one, with its expansive social media ecosystem and futuristic metaverse vision, paints a vivid picture of the digital future. The second navigates the financial seas with a diverse business portfolio, aiming for unwavering stability. Meanwhile, the third’s athletic prowess is matched only by its pursuit of fostering brand loyalty and conquering global markets.
The article delves into the depths of these companies. It assesses the unique traits that make them worthy buy-on-the-dip candidates for investors seeking long-term value.
Bargain Stocks: Meta Platforms (META)
The technology conglomerate Meta Platform’s (NASDAQ:META) ecosystem of apps, including Facebook, Instagram, and WhatsApp, boasts an immense user base, with over 3.8 billion people engaging on at least one platform monthly. There is an ongoing growth in daily active users worldwide, particularly in the U.S. and Canada. It demonstrates the enduring popularity of these platforms.
Meta also plans to introduce Threads, Reels, Llama 2, and AI products. They have invested in AI infrastructure for content recommendations, which improves engagement and revenue. AI technology is applied to advertising and content creation to cater to user preferences, delivering targeted ads for better user experience and revenue.
Meta has made significant advancements in ad monetization through the use of AI. The Meta Advantage and Meta Lattice products are designed to enhance the effectiveness of advertisers by optimizing ad performance. This creates a valuable proposition for businesses and opens avenues for growth and monetization by integrating AI into business messaging. It supports interactions between consumers and businesses, making it a powerful tool for businesses looking to expand.
Fundamentally, Meta’s focus on open-sourcing AI infrastructure, like Llama 2, demonstrates its dedication to driving innovation and collaboration across the industry. Open-source AI projects enhance safety, security, and efficiency while positioning Meta as a key contributor to the broader AI ecosystem.
Likewise, Meta’s visionary approach centers on the metaverse, a convergence of virtual and physical reality and AI. This multi-year focus is a strategic move to capture emerging trends and secure a strong position in the evolving digital landscape. Meta’s forthcoming Quest 3 mixed reality headset showcases the company’s investment in hardware. The headset’s immersive technology bridges the gap between the physical and virtual realms. Therefore, as mixed reality gains traction, Meta’s early entry positions it to shape and dominate this emerging market.
JPMorgan Chase (JPM)
JPMorgan Chase (NYSE:JPM) primarily focuses on its different segments and their performance. Its diverse business segments provide a balanced revenue mix, including consumer and community banking, investment banking, markets, commercial banking, and asset and wealth management (AWM). This diversification can help the bank withstand economic fluctuations and regulatory changes, contributing to its long-term stability and growth.
Notably, the AWM segment’s consistent net inflows and asset growth under management (AUM) indicate the bank’s ability to attract and retain high-net-worth clients. This growth generates fee-based revenue and solidifies the bank’s trusted wealth management partner position. Consequently, it enhances JPMorgan Chase’s long-term reputation and relationships.
Despite fluctuations in certain lending segments like home lending and auto lending, the bank’s consumer lending business remains resilient. JPMorgan Chase’s ability to adjust its lending strategies and originate new loans while managing risks highlights its adaptability and potential for long-term expansion in the consumer credit market.
Additionally, JPMorgan Chase’s Investment Banking segment’s strong performance and top ranking in advisory and underwriting demonstrate its market leadership. Maintaining this position can attract more deals, strengthen client relationships, and lead to long-term investment banking revenue growth.
The bank aims to improve efficiency by managing costs despite increased expenses and investing in technology and headcount growth. Long-term cost control efforts can enhance profitability while optimizing return on equity and tangible common equity through strategies like capital deployment and pricing power. The bank’s adaptability and strong risk management instill confidence in its ability to perform well in various scenarios, maximizing shareholder value over time. Thus, I believe it is one of the best bargain stocks on the market.
Nike (NKE)
Fiscal 2023 saw Nike (NYSE:NKE) achieve a record-breaking $50 billion in revenue. Nike’s brand portfolio, including Nike, Jordan, and Converse, experienced substantial growth in fiscal 2023. Jordan Brand, in particular, demonstrated remarkable performance with mid-30s growth across various segments. This diversification helps Nike reach different consumer groups and tap into various fashion and sportswear trends.
Further, Nike’s direct-to-consumer (DTC) acceleration strategy is paying off. The company is leveraging data-driven insights to build robust and direct consumer connections. As a result, it leads to increased digital growth and higher conversion rates. The digital share of Nike’s business grew to 26%, up from 10% in fiscal 2019.
Nike’s membership program has been successful in engaging consumers and building loyalty. Their data-driven strategy improves the entire value chain, from creating products to marketing and merchandising.
Interestingly, Nike recognizes the significant growth potential in international markets such as China, Southeast Asia, India, and South America. The company’s strong brand and innovative products are well-received by consumers in these regions, and Nike is strategically investing to take advantage of these opportunities.
Fundamentally, Nike’s relentless pace of innovation positions the company as a market leader. Introducing new products and technologies, like the Vaporfly and React X, keeps Nike ahead of competitors while also appealing to consumers seeking performance and lifestyle products.
Similarly, Nike’s authenticity and connection to sport and culture differentiate the brand from competitors. The Jordan brand’s cultural significance and emotional connection are noteworthy, creating a unique brand identity that resonates with consumers globally.
Despite challenges related to product costs and supply chain disruptions, Nike’s focus on improving profitability is evident. The company anticipates expanding gross margins through more favorable freight rates and markdown improvements, ultimately leading to increased profitability in fiscal 2024. That makes it one of the top bargain stocks to buy right now.
As of this writing, Yiannis Zourmpanos had a LONG position in META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
