Investing in growth stocks is a tried-and-true investment strategy to earn long-term returns. These stocks refer to companies that consistently outpace the average returns in the industry. This is often fueled by their disruptive technologies and unique products or services. Growth stocks that can successfully capitalize on emerging trends can deliver significant returns for investors over time. 

Fortunately, 2024 is shaping up to be a solid year for the stock market and high-growth companies are leading the charge. With several stocks trading at a premium, the key to long-term gains is landing a good stock at a bargain price. Stocks with strong fundamentals have the potential to generate significant long-term returns. Buying the dip is a great way to turn a period of uncertainty into an opportunity. 

For investors looking to take advantage of the dip, let’s look at three growth stocks with plenty of room to go higher. 

Lululemon (LULU)

Although shares of Lululemon (NASDAQ:LULU) are sinking this year, we can expect a comeback in the long term. 

For the last decade, the yoga-inspired apparel company dominated the athleisure scene with its popular leggings and belt bags. Now, LULU stock is down 44% this year despite beating revenue expectations in the first quarter. The decline, sparked by increasing competition and slowing sales in North America, has many questioning its future. 

While the concerns hold merit, the narrative remains slightly overblown because the company’s long-term prospects continue to remain bright. Let’s consider the latter headwind of slowing sales. While Lululemon reported only a 3% increase in regional sales, international sales surged by 35%. Sales in China grew by an impressive 45%. The international sales momentum will serve as a major growth catalyst for Lululemon which plans to quadruple its international revenue by 2026.

Coming to the former argument, Lulemon faces significant competition in the apparel space, with newcomers like Alo Yoga encroaching on its territory. However, the company holds a key advantage with its men’s clothing line. Although this is still a growing business, Lululemon’s expansion efforts will give it a competitive edge over its peers. The company plans to double men’s apparel revenue between fiscal year 2021 and fiscal year 2026.

Shares of LULU may be trending lower, but the signs point to plenty of upside for the stock in the long haul. The company’s impressive revenue numbers and growing business make it one of the best growth stocks to buy on the dip.

Zscaler (ZS)

Zscaler (NASDAQ:ZS) is a cybersecurity company with a strong fundamental business and exciting growth prospects. Despite ZS shares dipping 22% lower in the last six months due to increased competition, it’s not all doom and gloom for the company. In fact, the pullback presents a great buying opportunity for investors. 

One major tailwind is Zscaler’s impressive product portfolio. During the recent Zenith Live Event, the company announced several features including a breach prediction tool and a comprehensive and integrated platform. Along with the company’s Zero Trust Exchange platform, these will serve as major growth catalysts in the competitive cybersecurity space. 

The company’s financials reflect the success of its business. In its third-quarter earnings, revenue breezed past analyst expectations and grew by 32.1% to $553.2 million. Its balance sheet remains just as impressive with a whopping $2.2 billion in cash and cash equivalents. Analysts showed the ZS stock plenty of love following earnings, giving it a strong buy rating. 

ZS stock is trading lower as a result of intense competition in the industry. However, its strong financials and expanding product portfolio provide a long runway for growth. In other words, the current dip presents a great buying opportunity to capitalize on its future gains. 

Intel (INTC)

As the chip wars heat up, Intel (NASDAQ:INTC) lags behind its industry peers. Shares are down 30% this year due to steep competition in the chip market. However, the dip presents a good buying opportunity for investors seeking a long-term play. Two key advantages will fuel Intel’s growth are U.S. semiconductor production and the demand for artificial intelligence (AI). 

Importantly, Intel is a major beneficiary of the Biden Administration’s C.H.I.P.S Act designed to support the manufacturing of U.S.-made semiconductors. As part of the deal, the company is slated to receive $8.5 billion which it will spend on building chip fabs and research centers nationwide. Intel’s competitors, Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) rely on China-based companies for chip fabs. However, amid rising tensions between the U.S. and China, Intel’s investment in regional chip fab manufacturing will give it a competitive edge in the long haul. 

A second tailwind for the company is the AI boom. Semiconductors, such as those made by Intel and Nvidia, are integral to several AI-driven technologies. The company is investing heavily in its AI offering and recently unveiled its Gaudi 3 chips. According to Intel, these AI chips can be trained 40% faster than Nvidia’s H100 chips with 1.5x inferencing speed. As the demand for AI technology grows, Intel’s chips will provide a long runway for growth. 

Intel is one of the best growth stocks to buy on the dip. The company’s expanding position in U.S. chip manufacturing and AI demand will generate outsized returns in the long haul.

On the date of publication, Divya Premkumar 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.