The S&P 500 has delivered double-digit returns over 3 back-to-back years, and now the focus shifts towards 2026. With a lot going on at the geopolitical front, which might lead to substantial discounts across markets, there appears to be an opportunity for investors to rebalance their holdings by capitalizing on some depressed valuations.

On March 5, Bryn Talkington, Managing Partner at Requisite Capital Management, joined CNBC to address the broader market curiosity around whether to buy the dip or not. She emphasized the need for investors to define their time horizons in this market, which offers a lot of opportunities across different segments. And with that, investors should also have clarity on what particular dip they would want to trade on.

Talkington pointed out software and financials that are currently trading below their respective fundamentals. She shared her perception that many names in these sectors were unjustly sold off in the market, leading to substantial discounts. Hence, investors can make their selections across these segments based on careful due diligence.

With that background, let’s explore our 12 Best Buy-the-Dip Stocks to Buy According to Wall Street Analysts.

Our Methodology

To identify relevant stocks for this article, we conducted a sector-agnostic screening of U.S.-listed companies with market capitalizations above $2 billion. We then shortlisted stocks that have declined more than 30% over the past year and currently trade at a forward PEG ratio below 1. We then narrowed our search further to include stocks with at least 20% upside potential as of the March 4 close. In the final part of our search, we selected 12 stocks with the highest upside and ranked them in ascending order of upside.

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

12. Adobe Inc. (NASDAQ:ADBE)

Adobe Inc. (NASDAQ:ADBE) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.

On March 4, Barclays reduced its price target on Adobe Inc. (NASDAQ:ADBE) to $335 from $415. The firm also maintained an Overweight rating on the stock. Despite the downward revision, the stock still offers an upside potential of almost 23% to investors.

The price target revision came as the company prepares to publish its earnings results on March 12. The firm is anticipating the first quarter net new annual recurring revenue to stand at $460 million. Moreover, it considers its forecast beatable due to tiering contributions and growing usage of generative credits.

On February 13, HSBC lowered the firm’s price target on Adobe Inc. (NASDAQ:ADBE) from $388 to $302. The firm reiterated its Hold rating on the shares, yielding double-digit upside of almost 11% despite the downward revision.

HSBC expects Adobe Inc. (NASDAQ:ADBE) to face competitive risks in the medium to long-term. These would stem from AI-powered tools, which pose a threat to commoditizing the business’s core creative franchise.

Adobe Inc. (NASDAQ:ADBE) is a global technology company that focuses on digital media and marketing solutions. It offers tools for creating, publishing, and promoting content, and for managing documents. It also operates a platform that allows businesses to measure and monetize customer experiences based on marketing, advertising, and analytics.

11. Shift4 Payments Inc. (NYSE:FOUR)

Shift4 Payments Inc. (NYSE:FOUR) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.

On March 2, Benchmark reduced its price target on Shift4 Payments Inc. (NYSE:FOUR) to $67 from $100 while maintaining a Buy rating. In a post-earnings research note, the firm addressed investors by stating that:

“Q4 results justified concern, but not the panic it appears to have caused”.

The decline in share price by over 23% following the announcement is a sign that investors are pricing in structural deterioration in the business. However, the firm stated:

“The reality is more nuanced and not nearly as dire as the downdraft would suggest.”

On February 27, BTIG analyst Andrew Harte reduced the firm’s price target on Shift4 Payments Inc. (NYSE:FOUR) from $105 to $80. The analyst maintained his Buy rating on the stock.

The revision follows a disappointing FY26 guidance that fell short of investor expectations, which had already been gradually lowered in recent months. Although Harte expressed disappointment with the company’s initial FY26 outlook, he believes Shift4 still has several avenues to create shareholder value in both the short and long term.

Shift4 Payments Inc. (NYSE:FOUR) is a payment processing company that provides software and payment processing solutions worldwide. The company facilitates an end-to-end payment process covering various payment types such as credit, debit & contactless cards, Europay, QR Pay, and mobile wallets.