In this article, we will look at the 10 Best Stocks to Buy While the Market Is Down.
The market has started to tick higher on positive news regarding a potential deal in the US-Iran war. Over the past 5 days, the major indexes, including the S&P 500, Dow Jones, and the NASDAQ, all posted positive gains.
On April 18, Katerina Simonetti from Morgan Stanley appeared on a CNBC Television interview to discuss her firm’s view of the current market situation. She noted that the markets have recently moved higher on positive news, but this does not mean that it is out of the woods.
Despite the uncertainty, Simonetti believes that this is still a bull market and that pullbacks are good buying opportunities. She noted that her firm is advising clients not to wait too long to bring some risk back into their portfolios, as it views the market downturns as healthy corrections in the bull market.
She elaborated that although the valuations have gone down, the earnings continue to go up, and the expectations are also encouraging. Simonetti noted that this suggests that as the good news regarding any deal within the war appears, the comeback will be quick and robust.
With that, let’s take a look at potential stocks that you can buy to reap maximum benefit from the market comeback. Here’s our list of 10 Best Stocks to Buy While the Market Is Down.
Our Methodology
To curate the list of 10 Best Stocks to Buy While the Market Is Down, we used Quality Factor ETFs, reputable financial media, and Reddit as our primary sources. Using these sources, we shortlisted stocks that are recognized as high quality and for which analysts expect more than 25% upside over the next 12 months. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Stocks to Buy While the Market Is Down
10. Automatic Data Processing, Inc. (NASDAQ:ADP)
Analyst Upside Potential: 32.63%
Number of Hedge Fund Holders: 68
Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the Best Stocks to Buy While the Market Is Down.
On April 20, Guggenheim maintained a Buy rating on the stock with a price target of $270. The firm argues that the market is underestimating the growth potential of ADP, particularly its enterprise human capital management tool Lyric. Guggenheim noted that industry experts and consumer checks show how ADP Lyric performs well in complex payroll environments such as healthcare.
Moreover, Lyric also works well when deployed as a payroll and compliance layer alongside existing human capital management tools such as Workday and SAP. The firm noted that this “co‑existence” model lets the company serve complex workforce segments it otherwise might not reach. The analyst notes that this “buying motion” broadens ADP’s total addressable market because Lyric can land deals without dislodging the entire legacy human capital management stack.
Automatic Data Processing, Inc. set to release its fiscal Q3 2026 earnings on April 29. Wall Street expects the quarterly revenue around $5.85 billion along with a GAAP EPS estimate of $3.30. The company provides cloud-based human capital management solutions globally.
9. Accenture plc (NYSE:ACN)
Analyst Upside Potential: 26.49%
Number of Hedge Fund Holders: 71
Accenture plc (NYSE:ACN) is one of the Best Stocks to Buy While the Market Is Down.
The Street is bullish on Accenture plc (NYSE:ACN) as 70% of the 30 analysts covering the stock have a Buy rating. Moreover, the average 12-month price target suggests more than 26% upside from the current level.
Recently, on April 20, the company at Hannover Messe 2026 in Germany announced its partnership with Avanade and Microsoft to develop an agentic factory intelligence system. This system can potentially transform manufacturing by enabling AI agents to collaborate with human workers, machines, and data for faster issue resolution on factory floors.
The company noted Kruger and Nissha Metallizing Solutions as early adopters of the agentic factory intelligence system. These companies are validating the concept of agentic factories ahead of its general launch later this year.
Management noted that the factories are built upon the Factory Agents and Analytics platform of Accenture and Avanade. The system is be powered by Microsoft Azure, Fabric, Foundry, and Copilot.
Accenture plc (NYSE:ACN) is a global leader in consulting, technology, and outsourcing services, offering a wide range of solutions across industries.
8. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Analyst Upside Potential: 22.80%
Number of Hedge Fund Holders: 77
Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the Best Stocks to Buy While the Market Is Down.
The Street has a bullish sentiment on Chipotle Mexican Grill, Inc. as 67% of the 42 analysts covering the stock have a Buy rating on the stock. Moreover, the average 12-month price target on the stock suggests more than 22% upside from the current level.
Recently, on April 17, RBC Capital lowered the firm’s price target on the stock from $50 to $45, while maintaining a Buy rating on the shares. The rating comes ahead of the company’s FQ1 2026 earnings, expected to be released on April 29. RBC expects the same-store sales to beat the consensus estimates slightly. The optimism for the sales beat is based on an easier year-over-year comparison as consumer traffic declined in February 2025.
Moreover, the firm expects the company to reiterate flat same-store-sales guidance for fiscal 2026, mainly due to macroeconomic uncertainties from consumer spending pressures. However, RBC sees room for improvement as the conditions get better later in the year.
Chipotle Mexican Grill, Inc. is a global fast-casual restaurant chain known for customizable burritos, tacos, bowls, and salads, emphasizing high-quality, responsibly sourced ingredients and classic cooking methods, operating over 3,900 locations by late 2025.
7. Adobe Inc. (NASDAQ:ADBE)
Analyst Upside Potential: 26.82%
Number of Hedge Fund Holders: 91
Adobe Inc. (NASDAQ:ADBE) is one of the Best Stocks to Buy While the Market Is Down.
On April 20, Adobe Inc. announced major upgrades to Adobe GenStudio, which is the company’s AI platform for content creation. Management noted that they are building an agentic content supply chain, which will automate assembly lines from planning to delivering content across various channels.
The company also highlighted that this also addresses key pain points, including manual reviews and siloed workflows for more than 20,000 brands using Adobe’s tools. Some of the key new features include Adobe brand intelligence, agentic workflow tools, creative production automation, and more. One of the main features includes a workflow optimization agent that automates planning, reviews, and insights. It treats the agent as a team member who can be assigned tasks.
That said, earlier on April 17, Adobe Inc. was maintained with an Outperform rating at RBC Capital. However, the firm reduced the price target from $400 to $350. The rating came before the Adobe Summit event, where the major GenStudio updates were announced.
The firm was already expecting the company to make new product announcements featuring end-to-end workflows. RBC noted that the company needs to accelerate its annual recurring revenue for improved investor sentiment.
Adobe Inc. provides software and services for digital content creation and marketing.
6. Eli Lilly and Company (NYSE:LLY)
Analyst Upside Potential: 38.08%
Number of Hedge Fund Holders: 137
Eli Lilly and Company (NYSE:LLY) is one of the Best Stocks to Buy While the Market Is Down.
On April 20, Reuters reported that Eli Lilly and Company is buying Kelonia Therapeutics in a deal valued at up to $7 billion. The deal is aimed at expanding the company’s oncology offerings and also diversifying the company beyond its dominant weight-loss drugs amid rising competition.
According to the report, the deal is expected to close in the second half of 2026, and Lilly is expected to pay $3.25 billion upfront in cash, with up to $3.75 billion more in milestone payments tied to clinical, regulatory, and commercial successes.
Kelonia Therapeutics is developing vivo CAR-T therapies using iGPS particles to engineer patients’ T-cells directly inside the body, skipping ex vivo modification, apheresis, and lymphodepleting chemo. Their lead candidate is KLN-1010, which targets BCMA in relapsed or refractory multiple myeloma and is in Phase 1 trials. Reuters noted that Eli Lilly and Company aims to bolster its oncology portfolio; the oncology market is expected to hit $409 billion by 2028.
Overall, the Street is bullish on Eli Lilly and Company as 83% of the 35 analysts covering the stock maintain a Buy rating on the stock. Moreover, the 12-month average price target suggests more than 38% upside from the current level.
Eli Lilly and Company develops and markets pharmaceutical products globally.
5. Mastercard Incorporated (NYSE:MA)
Analyst Upside Potential: 27.57%
Number of Hedge Fund Holders: 150
Mastercard Incorporated (NYSE:MA) is one of the Best Stocks to Buy While the Market Is Down.
On April 14, Mastercard Incorporated was reiterated with a Buy rating by Citi. However, the firm lowered the price target from $735 to $675. Citi noted that despite the ongoing macroeconomic volatility, the company’s fundamentals remain intact. Moreover, the firm also highlighted stable consumer spending trends, which boost optimism for Mastercard. Citi attributed the price target reduction solely to lower multiples in the peer group, not company-specific issues.
In separate news, on March 31, Loop Capital initiated coverage of Mastercard with a Buy rating and a $631 price target. Analyst Dominick Gabriele noted strong growth prospects despite recent stock weakness. Gabriele pointed to key opportunities, including expanding into new geographies, value-added services, agentic transactions, international cash-to-card shifts, and rising cross-border volumes. The firm believes that these factors position Mastercard to outpace payment processor peers in net revenue growth through new transaction generation and market share gains.
Mastercard Inc operates in the payments industry and is one of the leading payment processors for everyday consumers, financial institutions, governments, and businesses. The company is headquartered in New York, United States.
4. Visa Inc. (NYSE:V)
Analyst Upside Potential: 26.18%
Number of Hedge Fund Holders: 184
Visa Inc. (NYSE:V) is one of the Best Stocks to Buy While the Market Is Down.
The Street has a bullish sentiment on Visa Inc. as 93% of the 40 analysts covering the stock have a Buy rating on the stock. Moreover, analysts’ 12-month average price target on the stock represents more than 26% upside from the current level.
Recently, on April 14, Citi maintained a Buy rating on the stock but lowered the price target from $450 to $400. The firm noted that, regardless of the ongoing macroeconomic uncertainties, the fundamentals of Visa remain intact. The firm also highlighted stable consumer spending trends, which support Visa’s business. However, despite the overall positive sentiment and strong fundamentals, the price target was lowered due to lower multiples in the group.
That said, earlier on April 7, Baird lowered the price target on Visa Inc. from $425 to $375 and maintained an Outperform rating on the stock. The firm noted updating its valuation model ahead of the company’s FQ2 2026 earnings. Visa is expected to release its earnings on April 28. The Street anticipates revenue around $10.75 billion along with a GAAP EPS of $3.05.
Visa Inc. is a payment technology company operating in the United States and internationally. It operates VisaNet, a transaction processing network that handles the clearing, authorization, and settlement of payments. The company offers its services under different brands such as PLUS, Visa, V PAY, Visa Electron, and Interlink.
3. Meta Platforms, Inc. (NASDAQ:META)
Analyst Upside Potential: 23.45%
Number of Hedge Fund Holders: 256
Meta Platforms, Inc. (NASDAQ:META) is one of the Best Stocks to Buy While the Market Is Down. On April 20, Meta Platforms, Inc. (NASDAQ:META) and CBRE, which is a major real estate and data center service company, announced a multi-year partnership. The collaboration is a multi-year initiative that aims to train thousands of fiber technicians in the United States.
The companies highlighted that this training will help address a critical issue of the shortage of trained labor for building advanced data centers, which Meta needs to fuel its AI and cloud computing growth.
As part of this partnership, CBRE will open multiple US training centers in summer 2026. At these training centers, the workers will be taught skills such as installing fiber-optic cables, network gear, and other data center infrastructure. Moreover, management also noted that graduates from these training programs will get priority placement at Meta’s construction sites.
Overall, the Street is bullish on Meta Platforms, Inc. with 90% of the 72 analysts covering the stock maintaining a Buy rating. The 12-month average price target reflects more than 27% upside from the current level.
Meta Platforms, Inc. develops products that help people connect with their friends and family. The company operates through Reality Labs (RL) and Family of Apps (FoA). It operates major apps such as Instagram, Messenger, Facebook, Meta AI, Threads, and WhatsApp.
2. NVIDIA Corporation (NASDAQ:NVDA)
Analyst Upside Potential: 32.64%
Number of Hedge Fund Holders: 264
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Stocks to Buy While the Market Is Down.
On April 18, Reuters announced that Cerebras Systems, which is a venture capital-backed, Silicon Valley-based company, filed for a US initial public offering. This can mean direct competition for NVIDIA Corporation, as on its website, Cerebras Systems boasts to “stand alone as the world’s fastest AI inference and training platform.” According to Reuters, Cerebras aims to compete with Nvidia with different types of AI chips that don’t rely on high-bandwidth memory.
The timeline, number of shares, and price of shares are not decided yet. The company says it plans to IPO when the market conditions are favorable. Despite this, Cerebras has already gained some big customers, including OpenAI, Amazon, and Meta. Notably, the company’s deal with OpenAI includes a $20 billion contract under which the ChatGPT creator will deploy 750 megawatts of the company’s chip.
While the IPO of Cerebras Systems will result in increased competition for Nvidia, with the pace at which the AI chip market has been growing, there’s room for several companies in the space. Moreover, the Street remains bullish on NVDA as 93% of the 70 analysts covering the stock have maintained a Buy rating. The average 12-month price target suggests more than 32% upside from the current level.
NVIDIA Corp. designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software. Its GPUs are used in gaming, high-performance computing, AI training, and inference and serve as the backbone of data center infrastructure worldwide.
1. Microsoft Corporation (NASDAQ:MSFT)
Analyst Upside Potential: 38.60%
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the Best Stocks to Buy While the Market Is Down.
On April 16, Reuters reported that Microsoft Corporation and Stellantis have entered a five‑year strategic partnership. As part of this collaboration, Stellantis will rely heavily on Microsoft’s cloud, AI, and cybersecurity expertise to modernize its digital and engineering operations as cars become more software‑driven.
The report noted that both companies will jointly develop more than 100 AI initiatives and will also roll out digital features for vehicles. The partners aim to speed up innovation, improve software‑based features, and make Stellantis more competitive against tech‑savvy rivals. No financial details of the deal have been disclosed yet.
That said, the Street is bullish on Microsoft; around 93% of the 59 analysts covering the stock have a Buy rating. The average 12-month price target suggests more than 38% upside from the current level. Recently, on April 21, Piper Sandler reiterated a Buy rating on the stock with a price target of $500. The firm cited strong AI growth as the key reason behind its bullish sentiment.
Microsoft Corporation is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.
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