Bargain Bonanza: The Top 7 Stocks to Snap Up During Market Dips

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  • Palantir (PLTR): Its diversified client base across 30 industries showcases product adaptability.
  • PENN Entertainment (PENN): Its strategic investments and ESPN integration represent market penetration.
  • Disney (DIS): It is leveraging iconic franchises, focusing on high-quality content and theme park revenue growth.
  • Read the article for more stocks to snap up during market dips!
Stocks to Buy on the Dip - Bargain Bonanza: The Top 7 Stocks to Snap Up During Market Dips

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In the tumultuous sea of the stock market, navigating waves of uncertainty often demands a keen eye for resilient investment opportunities. Amid market dips and fluctuations, strategic choices can be the life raft that keeps portfolios afloat.

From tech innovators showcasing diversified market traction to entertainment giants leveraging strategic partnerships, each company embodies strengths that transcend market uncertainties.

The article delves into these strategic stock picks, each a potential anchor against market volatility, offering insights into their fundamental strengths, growth potential, and strategic initiatives. Amidst market turbulence, these investments stand as sturdy pillars, ready to weather storms and emerge resilient.

Palantir (PLTR)

Palantir Logo. Palantir Technologies (PLTR) is a publicly traded American company that focuses on the specialized field of big data analytics.
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Palantir’s (NYSE:PLTR) fundamental strength is underscored by its ability to secure deals across multiple industries.

For instance, it has closed 80 deals worth $1 million or more in Q3 2023 across 30 industries. The company’s presence spans healthcare, construction, retail, energy, defense, and more.

This diversification mitigates reliance on any single sector and showcases the adaptability of Palantir’s products across varied business verticals.

The company’s US commercial business witnessed significant growth. It delivered a 33% year-over-year increase and a 12% quarter-over-quarter rise in customer count. Palantir’s US commercial customer count increased tenfold over the past three years, indicating robust client acquisition and retention strategies.

The exponential growth in the number of “Artificial Intelligence Platform” users and the adoption by nearly 300 organizations within a brief span since the product’s launch further emphasizes its market potential. The continued expansion of AIP at both existing and new customers indicates strong market demand and the effectiveness of Palantir’s product offerings.

Finally, the company’s ability to expand its customer base rapidly underscores its market traction and the value its products deliver.

PENN Entertainment (PENN)

In this photo illustration, the Penn Entertainment (PENN) logo is displayed on a smartphone mobile screen.
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PENN Entertainment (NASDAQ:PENN) strategically invests in growth projects like Hollywood Aurora and Hollywood Joliet. It is aiming to replace existing properties facing revenue declines. These projects are anticipated to deliver a +15% cash-on-cash return, contributing to future cash flow generation.

Adding hotel projects in high-performing properties like Hollywood Columbus and the M Resort in Las Vegas indicates a focus on enhancing the customer experience and attracting larger group businesses. As a result, it is supporting revenue growth.

Further, the imminent launch of ESPN BET, along with ESPN’s exclusive use of odds provided by PENN’s platform, highlights the potential for significant market penetration. The integration with ESPN’s vast user base and a planned advertising campaign featuring well-known anchors further strengthen PENN’s position in the online betting segment.

Overall, the proven technology platform powering ESPN BET, which has shown success in Ontario, indicates a robust foundation for expansion into the US market.

Disney (DIS)

Disney (DIS stock): An illustration of the magical kingdom castle at night with fireworks behind it
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Disney’s (NYSE:DIS) focus on core brands and franchises, including Pixar, Marvel, and Star Wars, has been a critical factor in its value growth.

The company’s ability to manage and leverage these iconic franchises has created extensive original content. It also supports the successful launch of sequels and franchise-related movies. The company’s focus is on enhancing creative output. Titles like Elemental exemplify this and reflect its dedication to maintaining high-quality content across various platforms.

Disney’s Experiences business, particularly its theme parks, remains a strong revenue driver, with an over 30% year-over-year increase in operating results. Despite pandemic-related disruptions, the company has showcased impressive growth in revenue and operating income, particularly in its international operations.

The planned investments in Experiences business expansion and optimization over the next decade will bolster growth prospects. It is leveraging Disney’s intellectual property, innovative technology, and strong returns on invested capital.

Finally, Disney’s consistent focus on delivering exceptional guest experiences has improved ratings and sustained growth across its parks and resorts globally.

SoFi (SOFI)

SoFi Technologies, Inc logo with stock market chart background. is an American online personal finance company and online bank.
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SoFi’s (NASDAQ:SOFI) Financial Services segment exhibited exceptional growth, with net revenue soaring by 142% year-over-year (Q3 2023).

Notably, SoFi Money and Invest contributed significantly to the revenue surge. The segment reached a milestone by achieving a positive contribution profit of $3.3 million despite continued heavy investment in credit card and investment businesses, positioning itself for future profitability.

Similarly, SoFi experienced accelerated member growth, adding 717K new members in Q3 2023, reaching nearly 7 million members, a 47% year-over-year increase. The company expanded its product suite to 10.4 million products. The products grew by 45% year-over-year, with financial services increasing by 50% and lending products by 24%.

Lastly, despite rapid member growth, the products per member remained at 1.5x, indicating the appeal and adoption of its robust product suite.

PayPal (PYPL)

PayPal logo and front of headquarters

PayPal (NASDAQ:PYPL) has achieved remarkable market penetration, as evidenced by its staggering usage statistics. Over 70% of US adults have used PayPal’s services in the past five years. This widespread adoption shows a high level of trust and acceptance among consumers.

Notably, PayPal doesn’t just boast high user numbers but also an active and engaged user base. This active engagement is a significant advantage as it drives sustained usage and loyalty among customers. It is ultimately contributing to higher retention rates.

The company’s offerings, such as the PayPal Cashback Mastercard and PayPal Rewards program, have enhanced customer engagement. For instance, customers with the cashback card increased their PayPal purchases significantly after adopting the product. Thus, this showcases the effectiveness of incentive-driven strategies in boosting consumer activity.

Finally, PayPal’s innovations for small businesses, like package tracking, have showcased substantial benefits, such as reducing item not received disputes by 80%, higher dispute wins by 40%, and faster funds release by 65%. Hence, the next-generation checkout streamlines the customer checkout experience while aiding merchants in improving conversion rates.

AMD (AMD)

Sign of AMD office in Markham, Ontario, Canada. Advanced Micro Devices, Inc. is an American multinational semiconductor company.
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Despite experiencing some fluctuations, AMD’s (NASDAQ:AMD) Data Center segment has seen impressive growth.

For instance, Q3 2023 indicated a 21% sequential growth, driven by strong sales of the 4th Gen EPYC processors to cloud and enterprise customers.

EPYC CPU revenue grew significantly, emphasizing hyperscale deployments and driving the revenue share in the server CPU market.

The company focuses on expanding its EPYC CPU portfolio. This includes specialized processors like Ciena for edge computing, highlighting a strategic approach to catering to diverse enterprise needs.

The AI-focused products, particularly the Instinct MI300 accelerators, have gained traction. It results in significant customer commitments and a projection of exceeding $2 billion in revenue in 2024.

Finally, strategic acquisitions of Mipsology and Nod.ai demonstrate AMD’s focus on enhancing its AI software capabilities. Thus, AMD is expanding its expertise, catering to diverse AI market demands.

Chevron (CVX)

CVX stock
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Chevron’s (NYSE:CVX) robust financials, including solid earnings, cash flow, and a return on capital employed (ROCE) greater than 12% for nine consecutive quarters, indicate stability and effective capital allocation.

The company’s ability to generate substantial free cash flow, with an expected figure of over $4 billion from TCO alone by 2025, demonstrates its financial resilience.

Chevron’s acquisition of Hess Corporation and investments in new energies highlight their strategic diversification and business expansion. This diversification spreads risk and positions the company for growth amid evolving energy landscapes.

Finally, the forecasted increase in production, expected to reach over 1 million barrels of oil equivalent per day in 2025, showcases Chevron’s commitment to expanding its operational footprint. The company’s long-term vision remains strong despite temporary production dips due to turnaround schedules and project timelines.

As of this writing, Yiannis Zourmpanos held long positions in PLTR, DIS, SOFI, and PYPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/bargain-bonanza-the-top-7-stocks-to-snap-up-during-market-dips/.

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