In this article, we will look at the 10 Stocks to Buy on a Pullback.
Pullbacks tend to create favorable setups when they hit more than just the weakest parts of the market. In a broad selloff, fundamentally solid companies can get dragged lower alongside the rest of the market. That is what makes these periods worth watching. The opportunity is not in buying anything that is down, but in spotting stocks where the price has fallen faster than the underlying business has changed. After a long stretch when momentum and multiple expansion did much of the work, investors are once again paying closer attention to entry points and whether market weakness is creating a better risk-reward setup in companies that still look fundamentally intact.
That is also the message coming through in the institutional commentary. J.P. Morgan Asset Management says “High quality stocks are now priced at a discount,” adding that within U.S. markets, the quality factor is “more attractive than ever” outside unusually dislocated periods. Fidelity makes a similar point, saying “Market pullbacks can provide windows of opportunity” to buy quality stocks at “temporarily marked-down prices.” Putnam adds a useful market-level note that while the S&P 500 is “more expensive than average,” “many in this cohort are trading in line with or cheaper than their historical averages.” In other words, the broader market may still not look cheap, but individual opportunities are starting to emerge beneath the surface.
That is why stocks caught in a wider market pullback deserve a closer look, especially when the business still appears healthy, and the selloff looks more sentiment-driven than fundamental. With that in mind, let’s take a look at the 10 Stocks to Buy on a Pullback.
Our Methodology
We used the Finviz screener to identify stocks with an oversold RSI reading, forecasted annual EPS growth of at least 20% over the next 5 years, and viewed favorably by analysts. We then 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. Phillips 66 (NYSE:PSX)
On April 20, 2026, Phillips 66 (NYSE:PSX) and Kinder Morgan announced progress on the Western Gateway Pipeline after a successful second open season secured sufficient long-term shipper commitments to advance the project, pending final agreements and board approvals. The proposed system will link Midwest and Gulf Coast refinery supply to Phoenix, Arizona, and California markets, with additional connectivity to Las Vegas via Kinder Morgan’s CALNEV Pipeline. The project includes a new pipeline from Borger, Texas, to Phoenix, along with the reversal of Kinder Morgan’s existing SFPP pipeline to enable east-to-west product flows into California. The Gold Pipeline, currently running from Borger to St. Louis, will also be reversed to support supply into the system. The project is targeting an in-service date of mid-2029.
Earlier in April, Piper Sandler raised its price target on Phillips 66 to $177 from $168 while maintaining a Neutral rating, reflecting updated estimates based on recent trading trends, commodity pricing, and operating assumptions. The firm continues to see earnings tailwinds into 2026 and remains constructive on the broader refining outlook.
Similarly, Barclays raised its price target on Phillips 66 to $177 from $158 and kept an Equal Weight rating, citing benefits from commodity price tailwinds and what it views as a structurally higher valuation for the company’s energy infrastructure assets.
Phillips 66 (NYSE:PSX) operates as a diversified downstream energy company with refining, midstream, and marketing operations globally.
9. Takeda Pharmaceutical Company Limited (NYSE:TAK)
On April 8, 2026, Bernstein upgraded Takeda Pharmaceutical Company Limited (NYSE:TAK) to Outperform from Market Perform and raised its price target to ¥6,900 from ¥5,100, citing “bold” cost-cutting measures and a series of upcoming pipeline catalysts that could help de-risk the business.
On April 5, 2026, Denali Therapeutics announced that Takeda had decided to terminate their collaboration to co-develop and commercialize DNL593, an investigational progranulin replacement therapy for frontotemporal dementia. The decision was based on strategic considerations rather than safety or efficacy concerns, with Denali regaining full control of the program and its intellectual property.
Earlier, Axsome Therapeutics entered into an agreement with Takeda to acquire exclusive global rights to TAK-063, a selective phosphodiesterase 10A inhibitor. The asset will be developed for schizophrenia and Tourette syndrome, with Phase 3-enabling activities expected to begin in 2026. Under the deal, Takeda received an upfront payment and remains eligible for milestone payments and royalties tied to future development and commercialization.
Takeda Pharmaceutical Company Limited (NYSE:TAK) is a global biopharmaceutical company focused on developing and commercializing treatments across multiple therapeutic areas.
Hedge Fund Resource Center