{"id":8292,"date":"2022-06-15T20:14:03","date_gmt":"2022-06-16T01:14:03","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=8292"},"modified":"2022-06-19T14:43:14","modified_gmt":"2022-06-19T19:43:14","slug":"buy-the-dip-best-cheap-stocks-to-buy-now","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=8292","title":{"rendered":"Buy The Dip: Best Cheap Stocks To Buy Now"},"content":{"rendered":"\n<p>When markets swoon and stock prices drop across the board, smart traders know there are deals to be had. But picking the right stock to buy is tough: How do you decide which ones are poised to bounce back?<\/p>\n\n\n\n<p><a href=\"https:\/\/www.forbes.com\/advisor\/investing\/should-you-buy-the-dip\/\" target=\"_blank\" rel=\"noreferrer noopener\">Buying the dip<\/a>&nbsp;is not a simple trading strategy and should be cautiously approached. Done right, you can earn a fat discount on stocks with sound fundamentals and strong prospects. Think of it like buying quality stocks at a discount.<\/p>\n\n\n\n<p>The truth is that many great companies get dinged in short-term market drops but tend to perform very well over time. When you know which metrics of quality to track to uncover cheap stocks to buy, you can pick winners that the market may reward with higher prices after the dip.<\/p>\n\n\n\n<p>We have identified nine cheap stocks to buy that have fallen along with the\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.forbes.com\/advisor\/investing\/what-is-sp-500\/\" target=\"_blank\">S&amp;P 500<\/a>\u00a0and other major stock indexes over recent months. Each company has a multiyear history of growing earnings per share (EPS) and revenue, and analysts are still expecting similar growth in the years ahead.<\/p>\n\n\n\n<h2>Best Cheap Stocks To Buy Now<\/h2>\n\n\n\n<h3>Monolithic Power Systems, Inc. (MPWR)<\/h3>\n\n\n\n<h4>Trailing 3-Year Annualized EPS<\/h4>\n\n\n\n<p>+28.86<\/p>\n\n\n\n<h4>Trailing 3-Year Annualized Revenue<\/h4>\n\n\n\n<p>+27.5%<\/p>\n\n\n\n<h4>Forward 5-Year Annualized EPS Estimate<\/h4>\n\n\n\n<p>+25%<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/thumbor.forbes.com\/thumbor\/fit-in\/600x300\/https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/06\/Monolithic_Power_Systems_Logo-removebg-preview.png\" alt=\"Monolithic Power Systems, Inc. (MPWR)\"\/><\/figure>\n\n\n\n<p>Why We Picked It<\/p>\n\n\n\n<h3>Ubiquiti Inc. (UI)<\/h3>\n\n\n\n<h4>Trailing 3-Year Annualized EPS<\/h4>\n\n\n\n<p>+16.8%<\/p>\n\n\n\n<h4>Trailing 3-Year Annualized Revenue<\/h4>\n\n\n\n<p>+23.1%<\/p>\n\n\n\n<h4>Forward 5-Year Annualized EPS Estimate<\/h4>\n\n\n\n<p>+23.9%<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/thumbor.forbes.com\/thumbor\/fit-in\/600x300\/https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/06\/Ubiquity.png\" alt=\"Ubiquiti Inc. (UI)\"\/><\/figure>\n\n\n\n<p>Why We Picked It<\/p>\n\n\n\n<h3>Microsoft Corp. (MSFT)<\/h3>\n\n\n\n<h4>Trailing 3-Year Annualized EPS<\/h4>\n\n\n\n<p>+28.6%<\/p>\n\n\n\n<h4>Trailing 3-Year Annualized Revenue<\/h4>\n\n\n\n<p>+15.1%<\/p>\n\n\n\n<h4>Forward 5-Year Annualized EPS Estimate<\/h4>\n\n\n\n<p>+16.2%<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/thumbor.forbes.com\/thumbor\/fit-in\/600x300\/https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/01\/28413-3-microsoft-logo-transparent-background.png\" alt=\"Microsoft Corp. (MSFT)\"\/><\/figure>\n\n\n\n<p>Why We Picked It<\/p>\n\n\n\n<h3>Chipotle Mexican Grill, Inc. (CMG)<\/h3>\n\n\n\n<h4>Trailing 3-Year Annualized EPS<\/h4>\n\n\n\n<p>+48.7%<\/p>\n\n\n\n<h4>Trailing 3-Year Annualized Revenue<\/h4>\n\n\n\n<p>+15.8%<\/p>\n\n\n\n<h4>Forward 5-Year Annualized EPS Estimate<\/h4>\n\n\n\n<p>+27.2%<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/thumbor.forbes.com\/thumbor\/fit-in\/600x300\/https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/06\/Chipotle-Mexican-Grill.png\" alt=\"Chipotle Mexican Grill, Inc. (CMG)\"\/><\/figure>\n\n\n\n<p>Why We Picked It<\/p>\n\n\n\n<h3>ASML Holding NV (ASML)<\/h3>\n\n\n\n<h4>Trailing 3-Year Annualized EPS<\/h4>\n\n\n\n<p>+31.5%<\/p>\n\n\n\n<h4>Trailing 3-Year Annualized Revenue<\/h4>\n\n\n\n<p>+19.4%<\/p>\n\n\n\n<h4>Forward 5-Year Annualized EPS Estimate<\/h4>\n\n\n\n<p>+29.8%<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/01\/ASML_Holding_N.V._logo.svg\" alt=\"ASML Holding NV (ASML)\"\/><\/figure>\n\n\n\n<p>Why We Picked It<\/p>\n\n\n\n<h3>Deckers Outdoor Corp. (DECK)<\/h3>\n\n\n\n<h4>Trailing 3-Year Annualized EPS<\/h4>\n\n\n\n<p>+22.5%<\/p>\n\n\n\n<h4>Trailing 3-Year Annualized Revenue<\/h4>\n\n\n\n<p>+15.9%<\/p>\n\n\n\n<h4>Forward 5-Year Annualized EPS Estimate<\/h4>\n\n\n\n<p>+16.3%<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/thumbor.forbes.com\/thumbor\/fit-in\/600x300\/https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/06\/Deckers-Outdoor-Corp.-DECK.png\" alt=\"Deckers Outdoor Corp. (DECK)\"\/><\/figure>\n\n\n\n<p>Why We Picked It<\/p>\n\n\n\n<h3>Medifast, Inc. (MED)<\/h3>\n\n\n\n<h4>Trailing 3-Year Annualized EPS<\/h4>\n\n\n\n<p>+38.2%<\/p>\n\n\n\n<h4>Trailing 3-Year Annualized Revenue<\/h4>\n\n\n\n<p>+45%<\/p>\n\n\n\n<h4>Forward 5-Year Annualized EPS Estimate<\/h4>\n\n\n\n<p>+20%<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/thumbor.forbes.com\/thumbor\/fit-in\/600x300\/https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/06\/Medifast-Inc.-MED.png\" alt=\"Medifast, Inc. (MED)\"\/><\/figure>\n\n\n\n<p>Why We Picked It<\/p>\n\n\n\n<h3>Intuit Inc. (INTU)<\/h3>\n\n\n\n<h4>Trailing 3-Year Annualized EPS<\/h4>\n\n\n\n<p>+17.5%<\/p>\n\n\n\n<h4>Trailing 3-Year Annualized Revenue<\/h4>\n\n\n\n<p>+17.3%<\/p>\n\n\n\n<h4>Forward 5-Year Annualized EPS Estimate<\/h4>\n\n\n\n<p>+17.5%<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/thumbor.forbes.com\/thumbor\/fit-in\/600x300\/https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/06\/Intuit-Inc.-INTU.png\" alt=\"Intuit Inc. (INTU)\"\/><\/figure>\n\n\n\n<p>Why We Picked It<\/p>\n\n\n\n<h3>EPAM Systems, Inc. (EPAM)<\/h3>\n\n\n\n<h4>Trailing 3-Year Annualized EPS<\/h4>\n\n\n\n<p>+23.4%<\/p>\n\n\n\n<h4>Trailing 3-Year Annualized Revenue<\/h4>\n\n\n\n<p>+26.8%<\/p>\n\n\n\n<h4>Forward 5-Year Annualized EPS Estimate<\/h4>\n\n\n\n<p>+18.7%<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/thumbor.forbes.com\/thumbor\/fit-in\/600x300\/https:\/\/www.forbes.com\/advisor\/wp-content\/uploads\/2022\/06\/EPAM-Systems-Inc.-EPAM.png\" alt=\"EPAM Systems, Inc. (EPAM)\"\/><\/figure>\n\n\n\n<p>Why We Picked It<\/p>\n\n\n\n<p><em>*All analysis and data are sourced from&nbsp;<a href=\"https:\/\/tradethatswing.com\/creating-a-buy-the-dip-stock-list-with-a-scanner\/\" target=\"_blank\" rel=\"noreferrer noopener\">Trades That Swing<\/a>, current as of June 5, 2022.<\/em><\/p>\n\n\n\n<h2>Methodology<\/h2>\n\n\n\n<p>Our curated list of cheap stocks to buy now is built using strict criteria. The stocks outlined above are traded on U.S. or Canadian stock exchanges and meet the following requirements:<\/p>\n\n\n\n<ul><li><strong>Sustained average annual EPS growth.<\/strong>&nbsp;All of the stocks above have delivered at least five consecutive years of annual EPS growth of greater than 15% per year.<\/li><li><strong>Sustained average annual revenue growth.<\/strong>&nbsp;Chosen stocks have delivered at least five consecutive years of annual revenue growth of more than 10% per year.<\/li><li><strong>Sustained year-over-year EPS gains.<\/strong>&nbsp;EPS must be higher than the prior year in each of the last four years.<\/li><li><strong>No negative earnings in the last four years.<\/strong>&nbsp;While sustained earnings growth is key, profitability is even more important, so no stocks should have seen negative EPS in the past four years.<\/li><li><strong>Sustained growth seen in forward EPS estimates.<\/strong>&nbsp;Average analyst estimates for annual EPS growth over the next five years are greater than 15% per year.<\/li><li><strong>Next year\u2019s EPS estimates should be strong.<\/strong>&nbsp;The average analyst estimate for next year\u2019s EPS growth should be 15% or greater.<\/li><li><strong>Long-term returns that beat the market.<\/strong>&nbsp;Any stock that satisfies the other criteria has also outperformed the S&amp;P 500 by a comfortable margin. Five-year, annualized returns should be at least 10% higher than the S&amp;P 500\u2019s performance over the same period.<\/li><li><strong>A recent price drop.<\/strong>&nbsp;The stocks on our list have all seen a price drop of 20% or more from a recent high. Historical price drops are then used to explain how deep pullbacks tend to go before reversing to the upside.<\/li><\/ul>\n\n\n\n<p>These criteria aim to uncover stocks that have been growing their earnings and revenue and are expected to continue growing these key metrics. While analyst estimates aren\u2019t always accurate, they provide a handy measure of consensus expectations\u2014and stocks often move based on their expectations.<\/p>\n\n\n\n<p>When buying the dip, consider when you will purchase and when you will exit\u2026whether the stock drops or rises. It is unknown how far a stock will drop before it recovers or whether it will continue to trend higher in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When markets swoon and stock prices drop across the board, smart traders know there are deals to be had. But<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421,3422],"tags":[888,3425],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/8292"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8292"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/8292\/revisions"}],"predecessor-version":[{"id":8293,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/8292\/revisions\/8293"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8292"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}