In this article, we will discuss the 11 Best Buy-the-Dip Stocks to Buy Now.
As volatility rises, AllianceBernstein believes that staying invested remains a strategic priority to capture the long-term return potential in a broadening market. Global equities saw fresh difficulties in Q1 2025 amidst increased trade-war worries and developments in AI. As per the firm, bouts of volatility and a cloudy outlook highlighted the increased importance of diversification, valuations, and company fundamentals.
Realignment of Earnings
As per AllianceBernstein, recent shifts in equity return patterns highlight a deeper look at longer-term earnings trends. Over the previous 15 years, the US corporate earnings growth managed to outpace that of the non-US companies, reflected by the MSCI EAFE Index. The firm believes that, before 2010, this wasn’t always the scenario. Its research demonstrated that in 3 of the 4 decades since 1970, non-US earnings surpassed US earnings. This year, US corporate earnings growth is projected to come closer in line with that of earnings growth of the rest of the world, says AllianceBernstein. At the same time, the equity valuations outside the US remain at a significant discount, considering the 2025 forecast earnings.
Despite a difficult quarter, the firm opines that the US stocks are critical to any diversified allocation. Over the last 60 years, US earnings growth has continued to rise consistently, tackling significant economic and geopolitical shocks. Unshakeable US advantages— which span from innovation to education to corporate culture— form a critical factor for the equity returns. Overall, the firm believes that a US allocation with disciplined active portfolios throughout the style spectrum is the correct way to tap into the dynamic market.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Measures Likely to Help US Stocks
According to BlackRock, the US is home to some renowned and innovative companies. The country remains at the forefront of the AI infrastructure buildout and a frontrunner on the global stage when it comes to both R&D spending and patent applications. IP laws continue to stimulate such an innovative impulse. As per the firm, the US possesses over half the world’s “unicorn” companies. According to them, any moves toward policy targeting deregulation can further accelerate the innovative edge.
These measures contribute to the firm’s positive long-run outlook for US stocks. Over the near term, it anticipates that the market will broaden out. This broadening will take place from “Magnificent 7” leadership to the rest of the US and also to other parts of the world. As per the asset manager, Q1 results can be a teaser. The developed markets, ex-U.S., are expected to lead returns, followed by emerging markets and then value stocks in the U.S.
Amidst such trends, let us now have a look at the 11 Best Buy-the-Dip Stocks to Buy Now.
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Our Methodology
To list the 11 Best Buy-the-Dip Stocks to Buy Now, we used a screener to shortlist stocks that trade close to their respective 52-week lows. After getting an extended list of 25-30 stocks, we chose the ones popular among hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Buy-the-Dip Stocks to Buy Now
11. UFP Industries, Inc. (NASDAQ:UFPI)
Closing Price as on April 28: $106.58
52-week Low: $99.42
Number of Hedge Fund Holders: 23
UFP Industries, Inc. (NASDAQ:UFPI) is engaged in designing, manufacturing, and supplying wood and non-wood composites and other materials. The company highlighted that business activity improved sequentially in each month during the quarter, and this improvement continued into April. Amidst uncertainty, the company remains focused on directing its efforts to activities that can improve profitability and streamline costs. It is on target to realize $60 million of structural cost savings by year-end 2026, and UFP Industries, Inc. (NASDAQ:UFPI) continues to accelerate investments throughout its portfolio into higher-growth and higher-margin opportunities that address its return on capital targets.
Since the company does not own any foreign sawmills and possesses healthy relationships with its mill partners, UFP Industries, Inc. (NASDAQ:UFPI) management believes it is presently in a robust position to adapt quickly to tariffs without a material adverse financial impact after a short adjustment period. UFP Industries, Inc. (NASDAQ:UFPI)’s long-term goals consist of achieving 7%-10% unit sales growth annually (which includes bolt-on acquisitions) and at least 10% of all sales coming from new products, as well as achieving 12.5% EBITDA margins. Also, the goals include earning an incremental return on new investments over the hurdle rate and maintaining a conservative capital structure.
10. Whirlpool Corporation (NYSE:WHR)
Closing Price as on April 28: $77.06
52-week Low: $75.03
Number of Hedge Fund Holders: 25
Whirlpool Corporation (NYSE:WHR) is engaged in manufacturing and marketing home appliances and related products and services. Despite the uncertain macro environment impacting consumer confidence in Q1 2025, the company delivered 160 basis points of margin expansion. This highlights its brand position and its agile and disciplined operational execution. Whirlpool Corporation (NYSE:WHR), with its 10 large US factories, remains a net winner of a new tariff policy. With its strong domestic footprint, the company produces 80% of its domestic sales in the US. The company anticipates a more stable competitive landscape in H2. This will be an environment in which it can leverage its US domestic production to its fullest extent.
Coming to the ongoing EBIT margin drivers, Whirlpool Corporation (NYSE:WHR) highlighted that price mix favorably impacted margin by 50 bps, thanks to its successful pricing actions in MDA North America and MDA Latin America. The company’s cost takeout actions delivered 100 bps YoY, led by its continued manufacturing and supply chain efficiencies and the organizational simplification actions. Whirlpool Corporation (NYSE:WHR) expects organic growth of ~3% to $15.8 billion in net sales in 2025. This will be fueled by its robust pipeline of new products.
9. Century Communities, Inc. (NYSE:CCS)
Closing Price as on April 28: $54.09
52-week Low: $53.59
Number of Hedge Fund Holders: 27
Century Communities, Inc. (NYSE:CCS) is engaged in the design, development, construction, marketing, and sale of single-family attached and detached homes. During Q1 2025, the company focused on balancing pace with price and managing its costs. Despite the market challenges, the company recorded 2,692 net new home contracts, delivered 2,284 homes, and generated a homebuilding gross margin of 20.1%. Century Communities, Inc. (NYSE:CCS)’s community count saw an increase of 26% YoY to 318. Its land pipeline of owned and controlled lots remains well-placed to support its growth plans over the upcoming several years and to mitigate risk. Notably, the company’s controlled lots account for 55% of its total lots.
Century Communities, Inc. (NYSE:CCS) has the flexibility to control huge amounts of land for future growth for a limited investment, as well as the ability to exit positions at a reasonable cost during market downturn. The company can make this happen without adversely impacting its near-term need for lots on which to start homes. Century Communities, Inc. (NYSE:CCS)’s geographically balanced land portfolio offers significant growth opportunities throughout its national footprint and mitigates risk from regional downturns. Furthermore, owned lots offer ~3 years of deliveries, placing Century Communities, Inc. (NYSE:CCS) well for the future years.
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