Despite prevalent misconceptions, the future of the U.S. economy looks promising. Economic indicators show strong growth, with the GDP steadily rising and unemployment at historic lows, hovering around 4%. Inflation, which spiked post-Covid, has significantly decreased, stabilizing consumer prices and easing household financial burden. Increased wages and robust consumer spending drive economic momentum, indicating a healthy demand for goods and services. Furthermore, investments in infrastructure, clean energy and advanced manufacturing are expected to create new jobs and spur innovation. Despite public skepticism, these positive trends suggest that there are growth stocks on the market for investors to buy on the dip.

The economy is robust and looks to improve significantly over the next few months. These three stocks have all been down over the past year and are sure to bounce back. If you buy these growth stocks on the dip, you will score a discount and see great profits soon.

Duolingo (DUOL)

Duolingo (NASDAQ:DUOL) is the most popular language learning app, offering over 40 languages and courses on math and music. It is price has been on the decline for about 6 months. However, it shows promise through its financials and innovations. 

Duolingo had a superb Q1 2024, with its FCF growth unusually high compared to other quarters, going from $45.05 million to $78.49 million. Its net income also doubled from Q4 2023, significantly improving from the prior year. Additionally, it has had highly consistent revenue growth in the low 40% range for the past few quarters. This consistency can indicate stability in the company and strategic planning.

Duolingo recently introduced its new subscription plan, Duolingo Max. This plan utilizes AI to introduce features like roleplay and more detailed answer explanation. The roleplay feature acts as a practice zone for real-world conversations with characters on the app. With generative AI taking over, language apps are slowly being dominated. This new feature combats the domination and keeps Duolingo in line with the times. 

To conclude, Duolingo shows potential to grow from its dip through its promising financials and innovations.

Chewy (CHWY)

Chewy (NYSE:CHWY) is an online retailer of pet-related products such as food, toys and medicine. Its stock is currently down 27.25% YTD at $16.26. However, 29 analysts are predicting a 12-month price forecast with a median target price of $23, with prices ranging from $16 as high as $32, making this stock undervalued. 

The pet service industry is projected to grow to almost $400 billion by 2028. This growth is fueled by the fact that 66% of American households own pets and there is a steady shift towards online shopping. These trends suggest that Chewy is in an excellent position to expand and perform well.

Moreover, CHWY’s financials have been strong and consistent within the past few years. As of January 31, 2024, its revenue stood at around $11.15 billion, growing at 10.17% since the fiscal year 2022. This figure was very similar to its cost of revenue increase of 9.63% over the same period. These two figures have resulted in a robust and steady profit margin of 28.36% in the fiscal year 2023. Furthermore, CHWY has boosted its cash and equivalents by a staggering 67.12%, providing investors with confidence in its financial stability. For this upcoming year, Chewy’s EPS and revenue are projected to increase by 32.7% and 5.5%, respectively. 

Chewy remains a prominent company in the pet service industry, with a solid commitment to its customers and the community. The company actively participates in various community initiatives such as Chewy Gives Back, which has contributed more than $183 million in products to animal shelters. Its offering of multiple products, deals and coupons, such as gift cards, will continue attracting millions of customers yearly. Thus, Chewy’s stock is very compelling to buy.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is a rising semiconductor company that builds chips in many segments. Its chips are found in computer processors worldwide.

The semiconductor industry is estimated to reach $190 billion by 2032. The sector is likely to favor companies that have been growing, as reliable producers will make up more of the space. AMD, considered one of the best processor chip producers, will capitalize on the industry’s growth. 

AMD already has a solid investor base, with over 110 hedge funds investing in the first quarter of 2024. They’ve made consistent gains in microprocessors, a sign of new development and growth for the company. AMD’s consistency and increase since its beginning are another reason to invest in the company. AMD has also committed $400 million in research and innovation for the next five years, looking to make new breakthroughs. AMD is taking strides to become the leading semiconductor company in the world.  

Semiconductors will only become more valuable as we integrate tech into all aspects of our lives. This rank AMD among growth stocks investors will want to buy on the dip.

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.