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.
8. Flowers Foods, Inc. (NYSE:FLO)
Closing Price as on April 28: $17.66
52-week Low: $17.33
Number of Hedge Fund Holders: 30
Flowers Foods, Inc. (NYSE:FLO) is engaged in producing and marketing packaged bakery food products. The company’s strong execution of portfolio strategy and cost savings initiatives fueled its Q4 and FY 2024 adjusted EPS growth amidst the difficult economic environment. In Q4 2024, the company’s diluted EPS rose $0.03 to $0.20, while adjusted diluted EPS went up by $0.02 to $0.22. The company’s investments in innovation and in-store operations resulted in strong market share performance from the leading brands. Improved pricing and the addition of profitable new accounts in the away-from-home business supported Flowers Foods, Inc. (NYSE:FLO)’s margins. Furthermore, a positive mix shift towards higher-margin products in the branded retail also aided its margins.
In FY 2024, Flowers Foods, Inc. (NYSE:FLO)’s net income increased 101% to $248.1 million (demonstrating 4.9% of sales), a 250-basis-point increase, mainly because of increased operating income due to lower legal settlements and related costs, and moderating ingredient costs. However, to a lesser extent, the benefits of optimization and cost savings initiatives also supported the increase. For the 53-week fiscal 2025, Flowers Foods, Inc. (NYSE:FLO) expects net sales of ~$5.403 billion to $5.487 billion, demonstrating 5.9% – 7.5% growth as compared to the prior year.
Palm Valley Capital Management, an investment management firm, released its Q1 2025 investor letter. Here is what the fund said:
“We started four new positions in the first quarter: Forrester Research (ticker: FORR), Monro (ticker: MNRO), Reynolds Consumer Products (ticker: REYN), and Flowers Foods, Inc. (NYSE:FLO). Each of these is a relatively small weighting in the Fund. Flowers Foods is the second largest producer of bread and bakery foods in the United States. Founded in 1919, the company’s brands include Nature’s Own, Dave’s Killer Bread, and Wonder. Flowers Foods has a long history of generating consistent sales and profit growth. As the company integrates its recent Simple Mills acquisition, earnings are expected to be flat in 2025. Nevertheless, we believe Flowers will continue to generate abundant free cash flow, sufficiently funding its dividend (5.0% current yield) and its plan to reduce debt. With Flower’s stock trading at a five-year low, its valuation has improved considerably.”
7. Pool Corporation (NASDAQ:POOL)
Closing Price as on April 28: $291.33
52-week Low: $284.275
Number of Hedge Fund Holders: 32
Pool Corporation (NASDAQ:POOL) is engaged in distributing swimming pool supplies, equipment, related leisure, irrigation, and landscape maintenance products. The execution of its long-term strategic initiatives and organic growth investments resulted in positive performance in Q1 2025. The company’s team generated more than $1.0 billion in net sales, demonstrating the strength and resiliency of its business. Pool Corporation (NASDAQ:POOL) expanded its sales center network through the addition of 2 greenfield locations and has optimized the supply chain capabilities. Furthermore, it has expanded its suite of premium product offerings.
Combined with the further integration of its digital platform, such initiatives place Pool Corporation (NASDAQ:POOL) well to capture available demand, allowing it to outperform the market. The company confirmed its FY 2025 earnings guidance range of $11.10 – $11.60 per diluted share, including the impact of YTD tax benefits of $0.10. With the company approaching the swimming pool season, Pool Corporation (NASDAQ:POOL) remains focused on strengthening its industry-leading position with the help of disciplined execution, continued innovation of its customer-centric POOL360 digital ecosystem, and growing the sales center network. Stifel analyst W. Andrew Carter gave the price target of $300, and kept a “Hold” rating on the company’s stock.
The London Company, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Pool Corporation (NASDAQ:POOL) – Shares of POOL outperformed despite a challenging demand environment for new pool construction. POOL is performing well and taking market share, especially in the retail channel. Broadly, POOL continues to invest in technology, capacity, and capabilities regardless of market conditions – this approach allowed them to come out of the last housing downturn in an exceptionally strong position, and we believe it will repeat this time around.”
6. Watsco, Inc. (NYSE:WSO)
Closing Price as on April 28: $455.78
52-week Low: $439.08
Number of Hedge Fund Holders: 33
Watsco, Inc. (NYSE:WSO) is engaged in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies. The company possesses a healthy balance sheet, evidenced by $432 million of cash, no outstanding debt, and $3 billion of shareholders’ equity. As a result, the company has been making investments to fuel growth and gain market share. From 1989 through 2024, Watsco, Inc. (NYSE:WSO) has seen a 19% CAGR for total shareholder return, exhibiting healthy performance throughout most macroeconomic and industry cycles.
Watsco, Inc. (NYSE:WSO)’s Q1 2025 results demonstrate initial stages of a large-scale product transition from regulatory changes that came into effect on January 1, 2025. These affect ~55% of the company’s sales and can ultimately convert ~$1 billion of inventory over the year. Watsco, Inc. (NYSE:WSO) has built a robust inventory position ahead of the selling season to help its customers compete and gain share as the transition unfolds. Overall, the company’s scale, technology platforms, OEM relationships, and entrepreneurial ownership culture are expected to act as competitive advantages that can help it position itself favorably. The company continues to target a long-term gross profit margin of 30%.
5. Healthpeak Properties, Inc. (NYSE:DOC)
Closing Price as on April 28: $17.75
52-week Low: $17.33
Number of Hedge Fund Holders: 37
Healthpeak Properties, Inc. (NYSE:DOC) is a fully integrated real estate investment trust (REIT). Ronald Kamdem from Morgan Stanley maintained a “Buy” rating on the company’s stock with a price objective of $24.00. The analyst’s rating is backed by a combination of factors, which include the company’s performance as well as strategic financial maneuvers. The analyst highlighted recent stock buybacks to the tune of ~$94 million. This exhibits confidence in Healthpeak Properties, Inc. (NYSE:DOC)’s valuation and offers potential downside protection. Notably, the company repurchased 5.1 million shares at a weighted average share price of $18.50 for an aggregate total of $94 million during Q1 and through April 24, 2025.
Elsewhere, analyst Juan C. Sanabria from BMO Capital maintained a “Buy” rating on the company’s stock, keeping the price target at $24.00. The analyst’s rating is backed by factors demonstrating healthy performance and strategic actions of Healthpeak Properties, Inc. (NYSE:DOC). Sanabria believes that the company remains proactive in capitalizing on market conditions (repurchasing $94 million worth of shares). This implies a strategic approach to enhance shareholder value. Despite the political uncertainties, Healthpeak Properties, Inc. (NYSE:DOC)’s lab leasing activities are strong, possessing a healthy tenant retention rate and favourable leasing spreads. Subsequent to Q1 and via April 24, 2025, the company executed 175,000 square feet of Lab leases with signed letters of intent on an additional 400,000 square feet.
Aristotle Capital Boston, LLC, an investment advisor, released its Q4 2024 investor letter. Here is what the fund said:
“Healthpeak Properties, Inc. (NYSE:DOC), is a healthcare-focused real estate investment trust (REIT) that develops, owns and manages medical office buildings, senior housing assets and life science facilities. Following an industry-wide life sciences building boom that created a supply/demand imbalance, DOC is poised to benefit from improved lease rates with its properties as excess industry capacity is absorbed. A solid fundamental backdrop for the demographically driven senior housing portfolio and stability within its medical office building portfolio should allow the company to produce improved financial performance over the next several years.”
4. Freshpet, Inc. (NASDAQ:FRPT)
Closing Price as on April 28: $73.4
52-week Low: $72.195
Number of Hedge Fund Holders: 40
Freshpet, Inc. (NASDAQ:FRPT) is engaged in manufacturing, distributing, and marketing natural fresh meals and treats for dogs and cats. Benchmark Co. analyst Todd Brooks maintained the bullish stance on the company’s stock, giving a “Buy” rating on April 10 and a price target of $140. The analyst rating is backed by a combination of factors impacting the company’s current and future performance. The analyst lauded Freshpet, Inc. (NASDAQ:FRPT)’s healthy market position in the fresh dog food segment. Furthermore, the analyst’s rating is aided by the company’s dominant market share and growth potential in the US dog food market.
Freshpet, Inc. (NASDAQ:FRPT)’s low exposure to tariff-related costs, as well as historical correlation between advertising and higher website traffic, are regarded as positive indicators for future growth. In Q4 2024, its net sales increased 22.0% to $262.7 million compared to $215.4 million for the prior year period, mainly due to volume gains of 20.7%. For FY 2025, Freshpet, Inc. (NASDAQ:FRPT) expects net sales of between $1.18 billion – $1.21 billion, an increase of 21% – 24% from 2024. Furthermore, it anticipates adjusted EBITDA of at least $210 million.
Wasatch Global Investors, an asset management company, released its Q1 2025 investor letter. Here is what the fund said:
“Another detractor was Freshpet, Inc. (NASDAQ:FRPT), a company that sells fresh, refrigerated meals and treats for dogs and cats. Revenue growth was a little lower than the market expected in Freshpet’s most recently reported quarter, but we believe the stock-price reaction was overdone. We spoke with management after the earnings call and have done our own analysis of Freshpet’s revenue streams. Based on our own analysis, we believe the company’s growth over the next several years will be far more durable than the market expects. Additionally, as the company scales, we believe gross margins will increasingly benefit from more resilient and predictable demand, leading to more efficient manufacturing.”
3. General Mills, Inc. (NYSE:GIS)
Closing Price as on April 28: $55.75
52-week Low: $55.15
Number of Hedge Fund Holders: 49
General Mills, Inc. (NYSE:GIS) is a leading global packaged food company. Analyst Leah Jordan from Goldman Sachs maintained a “Buy” rating on the company’s stock, and the price objective stood at $68.00. The analyst’s rating was backed by a combination of factors affecting the company’s current and future performance. The analyst opines that General Mills, Inc. (NYSE:GIS) has been taking critical steps in a bid to enhance volume growth. Furthermore, Jordan lauded the company’s defensive portfolio, which the analyst believes is positioned more favorably compared to the peers.
During Q3 2025, the company saw continued positive market share trends in Pet, Foodservice, and International, and improvement in Pillsbury refrigerated dough and Totino’s hot snacks. In these 2 businesses, the company made incremental investments and witnessed positive returns. General Mills, Inc. (NYSE:GIS) remains focused on improving its sales growth in fiscal 2026 by stepping up its investment in innovation, brand communication, and value for consumers. This investment is expected to be financed by another year of industry-leading HMM productivity, together with anticipated new cost-saving initiatives focused on boosting its efficiency and enabling growth. General Mills, Inc. (NYSE:GIS)’s industry-leading Holistic Margin Management (HMM) productivity program is projected to deliver at least 5% savings in cost of goods sold in fiscal 2026. This exhibits ~$600 million in gross productivity savings.
2. Old Dominion Freight Line, Inc. (NASDAQ:ODFL)
Closing Price as on April 28: $149.0
52-week Low: $144.9
Number of Hedge Fund Holders: 50
Old Dominion Freight Line, Inc. (NASDAQ:ODFL) operates as a less-than-truckload motor carrier. Stephens analyst Daniel Imbro gave the price objective of $180, and kept an “Overweight” rating on the company’s stock. As per the analyst, Old Dominion Freight Line, Inc. (NASDAQ:ODFL)’s excess capacity places it better as compared to the competitors to capture share via an upcycle. Elsewhere, TD Cowen analyst Jason Seidl reiterated the neutral stance on the company’s stock, giving a “Hold” rating on April 9.
As per this analyst, the company’s Q1 EPS exceeded expectations, demonstrating some operational strengths. Notably, in Q1 2025, it posted diluted EPS of $1.19. Even though the company has started to gain market share and expects a pivot from truckload to less-than-truckload freight, such benefits can be overshadowed by the broader economic headwinds, opines Seidl. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) spent $1.5 billion on capital expenditures over the past 2 fiscal years. Therefore, it has sufficient capacity within its service center network to accommodate future growth because of such ongoing investments. Therefore, the company expects that its capital expenditures will total ~$450 million in 2025, which is a $125 million reduction from its initial plan.
Conestoga Capital Advisors, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:
“Based in Thomasville, NC, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is one of the country’s largest less-than-truckload (LTL) carriers, an industry which has high barriers to entry. The company generated industry leading profit margins because of the durable competitive advantages it has created over decades including a balanced network and superior service. The freight industry is coming off a two plus year volume recession and we anticipate ODFL will resume its historical cadence of share gains in the next freight upcycle.”
1. PepsiCo, Inc. (NASDAQ:PEP)
Closing Price as on April 28: $133.76
52-week Low: $131.8
Number of Hedge Fund Holders: 69
PepsiCo, Inc. (NASDAQ:PEP) is engaged in the manufacture, marketing, distribution, and sale of various beverages and convenient foods. Analyst Filippo Falorni of Citi maintained a “Buy” rating on the company’s stock, demonstrating a combination of factors that dictate its potential despite the current challenges. The analyst has provided the price target of $160.00. One of the critical reasons is PepsiCo, Inc. (NASDAQ:PEP)’s international business, which has been exhibiting healthy performance with strong growth in markets such as Europe, India, and Brazil. As per the analyst, the international strength can contribute positively to PepsiCo, Inc. (NASDAQ:PEP)’s overall topline growth despite the macroeconomic pressures affecting some regions such as China and Mexico.
Furthermore, the rating is also supported by the company’s valuation, says Falorni. Despite the challenges, PepsiCo, Inc. (NASDAQ:PEP)’s efforts to mitigate difficulties with the help of cost savings and adjustments in sourcing have been regarded as positive steps. Also, the analyst opines that the performance of critical brands in North America demonstrates recovery potential and improvement, aiding an optimistic outlook. The company remains focused on building upon the successful long-term expansion of its international business, while initiating actions focused on improving performance in North America. PepsiCo, Inc. (NASDAQ:PEP)’s multi-year productivity initiatives are expected to fund disciplined commercial investments and support profitability.
While we acknowledge the potential of PEP as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than PEP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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