As I’ve said repeatedly over the past few months, the best time to look for long-term growth stocks to buy is when it looks like the sky is falling.

Right now, it doesn’t look like the sky is falling anymore. Markets have rallied big over the past six weeks. The major indexes are only narrowly down on the year.

But, for various reasons, I suspect that markets will get choppy in May. It will start to look like the sky is falling again.

Still, the long-term fundamentals underlying the markets remain favorable. The investment implication, then, is simple: buy the dip in stocks in May.

But what are the best stocks to buy on the dip in May? And what levels should you start buying? Here are my picks.

• The Trade Desk (NASDAQ:TTD)
• Roku (NASDAQ:ROKU)
• Shopify (NYSE:SHOP)
• Chegg (NASDAQ:CHGG)
• Facebook (NASDAQ:FB)
• Pinterest (NYSE:PINS)
• Adobe (NASDAQ:ADBE)
• Tesla (NASDAQ:TSLA)
• Alibaba (NYSE:BABA)
• Stitch Fix (NASDAQ:SFIX)

Those are the right questions to be asking. And if you’re asking them, consider these strong, long-term growth stocks to buy in May:

Stocks to Buy in May: The Trade Desk (TTD)

The Trade Desk is the structural backbone of the future advertising.

That is, the company provides buy-side programmatic advertising tools for marketers of all shapes and sizes, so that they can optimize and automate their advertising process using data-driven algorithms. Over the next decade, these tools will be rapidly adopted by every advertiser in the world. As that happens, The Trade Desk will become an increasingly important part of the trillion dollar ad industry.

Revenues will soar. So will profits. And the stock price.

But at what level should you buy the dip in TTD stock in May?

I like the stock in the $240 range here. My modeling suggests that a fair 2020 price target for The Trade Desk is $260, based on long-term earnings power of $11 per share by 2025, so there’s fundamental support for the stock below $250. The 200-day moving average sits at $240, so there’s also technical support around those levels. Further, at $240, that would represent about a 20% pullback in the stock from April highs, consistent with how large previous pullback have been, on average, over the past five years.

All else being equal, buy the dip in TTD stock at $240 or lower.

Roku (ROKU)

Roku is turning into the “cable box” of streaming TV.

In essence, the streaming TV world is starting to look a lot like the linear TV world, with a bunch of “channels” (or streaming services) and “viewers” (or streaming service subscribers). Roku provides the necessary function of organizing this market, creating a centralized software marketplace through which viewers can seamlessly access streaming services. Importantly, the company is the biggest player in this space, and because size matters when it comes to marketplaces from a supply/demand perspective, Roku should leverage its size to sustain dominance in streaming TV access software for the foreseeable future.

If so, the company will win over the lion’s share of the tens of billions of ad dollars that will migrate from linear to streaming TV channels over the next decade. As that happens, Roku’s revenues, profits and stock price will all go higher.

But at what level should you buy ROKU stock?

Consider the $100 level as a good point to buy any dip. My modeling suggests that a fair 2020 price target for ROKU stock is around $130, based on $15 in projected 2020 earnings per share, a 20-times forward exit multiple, and a 10% annual discount rate. Thus, around $100, there’s a strong argument for ROKU stock being “undervalued.”

The 50-day moving average also sits around $100, while the triple-digit mark has been a historical level of support in this stock and is a psychologically huge level below which bulls will step up their buying power.

All else being equal, buy the dip in ROKU stock below $100.

Shopify (SHOP)

Shopify is the future of e-commerce.

With every retailer pivoting from physical selling to online selling, websites have become the new storefront, i.e. just as every retailer in the world needed a physical storefront back in 2006, every retailer in the world needs a website today. Yet, around 40% of small businesses in the U.S. do not have a website. That rate is higher internationally. Broadly, this lack of online migration from small businesses implies a tremendous opportunity for Shopify — the world’s best company when it comes to providing online selling tools, like making a website, for small businesses — over the next decade.

From 2020 to 2030, there will be a boom in small business e-commerce. This boom will power huge customer growth at Shopify, which will power huge sales growth, huge profit and huge stock price gains.

But at what level should you buy the dip in SHOP stock?

I like SHOP stock around $600. The logic is three-fold.

1. My modeling suggests that, based on a $35 in 2030 earnings per share potential, a 35-times forward exit multiple, and a 10% annual discount rate, SHOP stock is fairly valued in 2020 around $520. It’s rare to get a hyper-growth stock at “fair value”, so I’ll settle for prices above $520 and closer to $600.
2. The 20-day moving average — which has historically been a good support line for this stock — sits around $570 today.
3. Excluding Covid-19, previous sell-offs in SHOP stock have averaged around 20%. At $600, you would have a peak-to-trough decline in SHOP stock of roughly 20%.

All else being equal, buy the dip in SHOP stock around $600.

Chegg (CHGG)

Chegg is the digital education platform of the future.

The academic world is antiquated. Physical textbooks. In-person classes and tutoring sessions. A physical academic resource department. All of those things are nice. But wouldn’t it be nice if, like shopping, education had digital components to complement its physical offerings?

Chegg is building those digital components, through a best-in-breed connected learning platform that includes on-demand, digital academic help services like e-textbooks, step-by-step solutions, online tutoring, online writing help, etc. And its latest earnings suggest that this company’s services are having a global breakthrough moment amid the coronavirus pandemic.

This breakthrough moment sets Chegg up for breakthrough growth over the next decade.

From 2020 to 2030, the academic world will increasingly virtualize. As it does, more and more students will subscribe to Chegg’s connected learning platform. Sustained big subscriber growth pave the path for sustained big revenue, profit, and stock price gains at Chegg.

But at what level should you buy the dip in CHGG stock?

Today, I like the stock around the lower $50s. The rationale is simple. Fundamentally, I see the stock running up to $200 in the long run, making $50 prices today seem attractively discounted. At the same time, a normal sell-off in Chegg has averaged about 12%. A low $50 price tag would make this sell-off consistent with that trend.

All else being equal, buy the dip in CHGG stock below $55.

Facebook (FB)

Facebook is the 400-pound gorilla in the digital advertising world that will soon turn into a 500 pound gorilla… and then a 600 pound gorilla … and eventually a 1,000 pound gorilla.

Facebook owns four digital properties — Facebook, WhatsApp, Messenger and Instagram. All of them have over a billion users. All of them are growing. And all of them are quasi-utilities in today’s digital world. Only two of them are fully monetized with ads. None of them have fully rolled out e-commerce capabilities. Over the next five to 10 years, Facebook will increase ad real estate on WhatsApp and Messenger, introduce more robust e-commerce capabilities across its ecosystem, and further extend dominance in the secular growth digital ad industry, while turning into a formidable player in the secular growth e-commerce market.

Net net, that means Facebook will sustain double-digit revenue and profit growth for a lot longer. That sustained healthy growth will spark sustained healthy gains in Facebook stock.

But at what level should you buy the dip in Facebook?

I like FB stock at $190. On the fundamental side, I actually see this stock being worth well over $225 today, so at $190, the stock will be attractively undervalued. On the technical side, the 200-day moving average — which has been a strong line of support in non-crisis situations — sits around $190. Also of note, a drop to $190 would represent a ~10% sell-off, which is fairly normal and healthy for this stock.

All else being equal, buy the dip in FB stock below $190.

Pinterest (PINS)

Pinterest has a very bright future as a strong, differentiated digital advertiser in the social media arena.

Pinterest, much unlike other social media platforms, is an intention-driven app, not an attention-driven one. That is, users don’t go to Pinterest to aimlessly scroll, like they do Facebook or Instagram. Instead, users go to Pinterest looking to intentionally discover inspiration or ideas for a project. In this sense, Pinterest’s users are purpose-driven.

Purpose-driven users are more likely to click on and engage with relevant advertisements that attention-driven users. As such, it’s quite likely that over the next several years as Pinterest ramps its ad business, marketers discover that some of their most successful ad campaigns are run on Pinterest.

This favorable positioning as a high-engagement digital advertiser will enable Pinterest to easily scale its ad business over the next several years. Alongside big margins — which are inherent to the digital ad business — this will propel both big revenue and big profit growth at Pinterest, the likes of which will send PINS stock higher.

But at what level should you buy the dip in this long-term winner?

I like PINS stock around $17. My modeling suggests a fair value  in 2020 around $25. At $17, the valuation is therefore quite attractive. Concurrently, $17 has been a level at which this stock has shown stability before during prior sell-offs, ex Covid-19.

All else being equal, buy the dip in PINS stock below $17.

Adobe (ADBE)

Adobe is the creative cloud company of the future.

The world today is all about two things: being online and being visual. Both of those trends work in favor of Adobe. On the digital front, Adobe provides tools which help enterprises on their paper-to-digital transformations. On the visual front, Adobe provides tools which help both enterprises and consumers capture, create, and edit visual content, like photos and videos. Importantly, Adobe offers best-in-breed, cloud-hosted solutions in both of those verticals.

Consequently, as more and more companies and consumers go digital and visual over the next decade, Adobe will sustain its huge growth trajectory. Revenues will keep rising. Profits will rise, too. As will ADBE stock.

But at what level should you buy the dip in ADBE stock?

I like ADBE stock around $300. The rationale is simple. Fundamentally, my 2020 price target on the stock is about $360, while the consensus Street price target is $340. At $300, then, the stock will be attractively undervalued. Meanwhile, the 200-day moving average — which has historically provided strong support — sits around $300, too. The $300 level is also a huge psychological level which bulls will likely want to hold.

All else being equal, buy the dip in ADBE stock around $300.

Tesla (TSLA)

Tesla is the automobile company of the future.

For various reasons — including a shift in consumer preference, strong government support, increased charging infrastructure, broader geographic reach, and lower price-points — electric vehicles (EVs) are the future of automobile transportation. Also for various reasons — including second-to-none branding, superior production capabilities, and unparalleled battery technology — Tesla is and will remain the leader in the EV industry for the foreseeable future.

It doesn’t take a rocket scientist to connect the dots. The EV industry will boom over the next decade. So will Tesla’s sales and profits. So will Tesla stock.

But at what level should you buy the dip in TSLA stock?

I like TSLA stock below $700. My modeling suggests that TSLA stock at $800-plus prices by the end of 2020 fundamentally makes sense. Prices below $700 today, then, seem fundamentally undervalued. Ex Covid-19, the stock has also shown consistent and repeated support at or just below the $700 levels.

All else being equal, buy the dip in TSLA stock below $700.

Alibaba (BABA)

Alibaba is the backbone of Asia’s budding technology markets.

Not only does Alibaba own and operate Asia’s largest e-commerce marketplace, but the company also owns and operates Asia’s largest cloud computing business. Over the next decade, Asia will continue to urbanize and digitize. As that happens, more consumers will pivot towards e-commerce, and more enterprises will migrate towards cloud-hosted services.

Alibaba’s e-commerce and cloud businesses will boom. Revenues and profits will run higher. As will Alibaba stock.

But at what level should you buy BABA stock?

BABA stock looks compelling in the $180 range. From a fundamental perspective, the stock is already dramatically undervalued, with my 2020 price target sitting around $250, and the consensus 2020 price target at $260. Technically, though, support doesn’t kick in until the 200-day moving average around $190. Historically speaking, BABA stock tends to drop slightly below its 200-day during sell-offs, implying a true bottom somewhere around $180.

All else being equal, buy the dip in BABA stock in the $180 range.

Stitch Fix (SFIX)

Stitch Fix is the future of shopping.

When it comes to shopping, science experiment after science experiment have proven that less is more. Too many options can cause consumer paralysis, and lead to undesirable outcomes (like the customer not buying anything). And yet, in the apparel world, the option pool is seemingly infinite, with thousands of brands each offering thousands of different product SKUs.

Stitch Fix is trying to solve this problem. By using data-driven matching algorithms, the company attempts to reduce the shopping apparel process from an overwhelming process with an infinite number of random choices, to a fun process with a handful of relevant choices.

Over the next decade, you will see a rush of shoppers migrate to the Stitch Fix model in an attempt to simplify, streamline, and shorten their shopping process. As this happens, Stitch Fix’s revenues, profits, and stock price will all march higher.

But at what level should you buy the dip in SFIX stock?

I think $12 is a compelling entry point. Fundamentally, the stock is way undervalued down at $12, with my 2020 price target up above $25 and the consensus 2020 price target near $20. Historically, the stock has also shown consistent and repeated support around $12, and it’s unlikely barring a crisis, that the stock breaks below that support line anytime soon.

All else being equal, buy the dip in SFIX stock at $12.