Investors are perpetually on the hunt for stocks to buy on the dip. This strategy involves buying companies that have experienced a recent decline in their share price but remain fundamentally sound.

Buying the dip can be a lucrative move, especially in volatile markets where corrections provide enormous opportunities. In 2024, there are several candidates worth taking a closer look at. These companies can potentially provide investors with significant returns as they recover from temporary setbacks. Moreover, an improving economy, lower inflation and increased risk appetite are all positive backdrops for a rebound. With unique value propositions, strong earnings growth and robust business models, they all possess the potential to recover by at least 25% or more. 

Now, let’s discover the top tech stocks to buy on the dip in 2024!

Airbnb (ABNB)

Airbnb (NASDAQ:ABNB) has revolutionized the travel industry with its innovative business model connecting travelers with hosts offering unique travel experiences. Despite facing setbacks during the COVID-19 pandemic, the company has delivered incredible growth over the last few years.

One of the key factors driving Airbnb’s potential for a substantial rebound is the resurgence of travel demand. The sector has remained extremely resilient, and pent-up demand will continue to drive growth for both leisure and business travel. Additionally, a stronger economy coupled with easing interest rates in the back half of 2024 is another positive sign for the company. After reporting record revenue, earnings and free cash flow in the 2023 fiscal year, growth has continued to accelerate. In Q1 FY24, revenue increased 18% year-over-year (YOY) to $2.1 billion. Net earnings skyrocketed 126% YOY to $264 million while generating nearly $2 billion in free cash flow from operations. With strong travel demand as a buffer, ABNB stock remains one of the best stocks to buy on the dip in 2024.

Adobe (ADBE)

Adobe (NASDAQ:ADBE) is another standout candidate for investors seeking lucrative tech stocks to buy on the dip. Known for its suite of creative software products, Adobe has been a leader in creative cloud, digital media and marketing solutions.

Adobe stock has faced pressure in 2024 thus far, with the stock significantly underperforming other major technology companies. The stock is currently down 10% year-to-date (YTD), after posting weak earnings and guidance in the first quarter of 2024. It also faces an antitrust probe from the FTC. The company was sued for failing to disclose certain fees to subscribers and making it difficult to cancel their subscriptions. Despite the recent dip in its stock price due to company-specific challenges, Adobe’s fundamentals remain strong. In Q2 FY24, Adobe delivered record revenue of $5.31 billion. Net earnings rose 21% YOY to $1.57 billion, driven by strong growth across Creative Cloud.

Additionally, its generative AI copilot software, Adobe Sensei, aims to accelerate design and productivity for its customers. These factors enable the company to return value to shareholders and drive growth in the second half of 2024.

McDonald’s (MCD)

McDonald’s (NYSE:MCD), a global fast food giant, is another excellent stock to consider buying on the dip. Despite facing challenges in 2024, the company is embracing the digital age and working to expand its footprint globally. 

One of the core strengths of McDonald’s is its brand recognition and extensive global footprint. The company has a strong presence in 118 countries and territories, serving millions of customers daily. It has been up against a tough macroeconomic environment in 2024 but has remained extremely resilient.

McDonald’s has been proactive in modernizing its operations, including the expansion of its loyalty rewards program. Its comparable sales have also marked its 13th consecutive quarter of growth in Q1 FY24. That is an extremely impressive feat, but the stock has not responded favorably. Moreover, its valuation looks extremely attractive, with the stock trading at just 20 times its forward earnings. Despite these positive developments, MCD stock continues its slide down 14% YTD. If you’re looking for promising stocks to buy on the dip, McDonald’s should certainly be one of the first places to look. 

On the date of publication, Terel Miles did not hold (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.