Dip Then Rip? 3 Nasdaq Stocks to Buy Before the Rebound

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  • Check out these three NASDAQ superstars for explosive growth in 2H’24!
  • Dave (DAVE): Its growing revenues are starting to bear fruit for investors.
  • Viking Therapeutics (VKTX): Viking’s encouraging data from its weight loss drug is making investors see a long-term value proposition.
  • Avidity Biosciences (RNA): Positive results from the MARINA open-label extension are revving up interest in RNA stock.
Nasdaq Stocks to Buy - Dip Then Rip? 3 Nasdaq Stocks to Buy Before the Rebound

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Momentum trading is one of my favorite strategies. Legendary trader Mark Minervini, who won the U.S. investing championship in 1997 and 2021, used momentum trading strategies to win. For a quick refresher, momentum refers to the rate of acceleration of a security’s price. Traders use technical indicators and other data to identify stocks with strong price momentum. One way to find momentum is to find Nasdaq stocks to buy that are trading close to their 52-week high. 

As indexes are trading around their all-time highs, now is a great time to look at the top-performing stocks on Nasdaq that are on a short-term pullback from their 52-week high.

To get the list, I screened for the following criteria:

  1. Stocks that are trading at most, 30% away from their 52-week high.
  2. Analyst ratings should be at least a buy.

Then, I sorted them based on their biggest YTD price percent change in descending order so that I only pick out the top performers that have exhibited a shallow pullback from their 52-week highs for a higher chance of potentially continuing their trajectory. 

Dave (DAVE)

The logo for Dave (DAVE) is displayed
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As the fintech industry grows and provides consumers with alternative options to traditional banking, digital banks like Dave (NASDAQ:DAVE) gain traction in the market. Dave specializes in financial technology (fintech) and neobanking services through its fully digital platform, which offers consumers flagship products like ExtraCash, which comes with no late fees or credit checks. 

The company’s members can also use its other services, such as goals, savings, and spending accounts, which help build customers’ long-term financial health.

Dave ended FY’23 with excellent results. Operating revenue grew 26% YoY, while the variable profit margin reached 74%. Even better, the company registered its first positive quarterly net income in a year, with Q4’23 reaching $0.2 million. 

Dave attributes this performance to a 23% increase in total revenue in Q4 and a 41% increase in its Dave Debit Card spending. This strong financial performance pushed DAVE to break through resistance and is only 23% away from its 52-week high. 

DAVE stock is up 476% YTD, and its robust financial results have earned it a strong buy rating from Wall Street analysts, making it one of the more attractive NASDAQ stocks to buy.

Viking Therapeutics (VKTX)

OLK Stock. Modern Medical Research Laboratory: Two Scientists Wearing Face Masks use Microscope, Analyse Sample in Petri Dish, Talk. Advanced Scientific Lab for Medicine, Biotechnology. Blue Color. KZR stock. RSLS stock. Best Biotech Stocks to Buy
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The race for obesity drugs is on. Biotech firms have been making waves in the race to dominate the market for a safe and FDA-approved obesity drug. Viking Therapeutics (NASDAQ:VKTX), one of the contenders, has just got a head start when it reported positive trial results. 

The company has clinical programs that include VK2809, which aims to treat lipid and metabolic disorders, VK0214 which addresses the breakdown of brain and nerve cells’ protective barriers, and its most recent star, VK2735, which is intended for the treatment of different kinds of metabolic disorders.

VKTX stock rose significantly as soon as the news of a positive Phase 2 VENTURE trial of VK2735 for obesity showed significant weight loss of up to 13.1%, compared to placebo over 13 weeks, offering safety and tolerability to patients.

Additionally, the company reported that the 52-week histology results for VK2809 in NASH and fibrosis are well within its expectations, building on prior success in reducing liver fat and cholesterol levels. All this helped the stock jump more than 120% overnight on February 27, 2024.

VKTX is up 269.35% YTD and current prices comfortably trade within the 30% range from its 52-week and all-time high of $99.41.

And that’s likely (at least part fo the reason) why analysts agree VKTX is a strong buy. If you want a momentum stock with great potential to continue its rise, VKTX should be on your watchlist. 

Avidity Biosciences (RNA)

half of a double helix molecule of DNA
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Avidity Biosciences (NASDAQ:RNA) is a biotech company specializing in RNA (ribonucleic acid) therapeutics called AOCs (antibody oligonucleotide conjugates). These are designed to address previously untreatable diseases with current RNA therapies. The company currently has three main clinical development programs:

  • AOC 1044 – Designed for Duchenne muscular dystrophy patients.
  • AOC 1001 – Designed for myotonic dystrophy type 1 patients.
  • AOC 1020 – For treatment of acioscapulohumeral muscular dystrophy. 

These are currently in phase I/II development and ongoing studies.

Avidity Biosciences recently announced positive long-term data from the MARINA open-label extension (MARINA-OLE) trial for investigational treatment. This has accelerated the company’s Phase 3 HARBOR trial to the second quarter of 2024, initially mentioned in its FY’23 financials. Additionally, Avidity will share data from clinical programs for FSHD and DMD44 later this year.

RNA stock is up 219.21% YTD after recently hitting an all-time high of $30.54 and now trades within 5 percent of that level. Further, the stock has consensus stong buy ratings from analysts. 

Given its great pipeline and prospects, analyst ratings, and momentum, investors looking for NASDAQ stocks to buy might want to take advantage of this opportunity while it’s bracing for another 52-week high run. 

On the date of publication, Rick Orford 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

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.


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