Wall Street’s seasoned investors often look for stocks to buy on the dip. This strategy involves purchasing stocks that have experienced a temporary downturn in the hope that they will rebound. So far in 2024, the benchmark S&P 500 index has advanced 11%.
Yet, not all stocks have participated in this rally. For example, while many tech stocks have soared, other sectors, such as industrial real estate or healthcare, have underperformed the S&P500. In most cases, disappointing earnings, negative news cycles on the economy or a given industry, or broader sector fluctuations have dampened investors’ spirit.
Similarly, small-cap shares on Wall Street have not participated in the rally as much either. However, these declines may be temporary, offering a chance to capitalize on undervalued companies with strong rebound potential. With that information, we explore three stocks to buy on the dip that are prime candidates for a summer rebound.
Global Payments (GPN) First up on our list of stocks to buy on the dip is Global Payments (NYSE: GPN ), which provides payment technology and software solutions. The company operates through three primary segments: Merchant Solutions, Issuer Solutions, and Business and Consumer Solutions. In the first quarter of 2024 , Global Payments reported adjusted net revenue of $2.
18 billion, marking a 6.6% year-over-year (YoY) increase. Adjusted net income rose 5.
6% to $666.5 million. Meanwhile, the adjusted earnings per share ( EPS ) surged by 8% YoY .
