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.
Image By Monkey Business – Adobe
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.
10. KKR & Co. Inc. (NYSE:KKR)
KKR & Co. Inc. (NYSE:KKR) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On February 12, Bill Katz from TD Cowen reduced the firm’s price target on KKR & Co. Inc. (NYSE:KKR) to $112 from $131. The analyst maintained his Hold rating on the stock, leading to a revised upside potential of over 19% at the prevailing level.
Katz based his revision on TD Cowen’s adjustments across the asset management space, driven by shifting macro and microeconomic dynamics. Based on these developments, the analyst is now more tilted towards alternatives compared with traditional asset managers within the broader group.
Back on February 9, Bank of America Securities also lowered its price target on KKR & Co. Inc. (NYSE:KKR) from $164 to $160, implying an upside of almost 71% despite the downward revision. The firm maintained its Buy rating on the stock. The adjustment follows post-fourth quarter EPS revisions across the brokers, asset managers, and exchanges.
KKR & Co. Inc. (NYSE:KKR) is a global private equity and real estate investment firm that specializes in direct and fund-of-fund investments. The company focuses on investments across various asset classes. These include LBOs, MBOs, special situation acquisitions, mature investments, distressed investments, turnarounds, and more.
9. Blue Owl Capital Inc. (NYSE:OWL)
Blue Owl Capital Inc. (NYSE:OWL) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On March 4, Chris Kotowski from Oppenheimer reduced the price target for Blue Owl Capital Inc. (NYSE:OWL) to $17 from $24, while maintaining an Outperform rating on the shares.
Despite what is perceived as strong results relative to the credit quality of its business development companies, Blue Owl Capital has been subject to a tremendous degree of negative media attention over the past several weeks. Kotowski believes that much of this has been misleading, like the concerns surrounding commercial banks in late 2023. He also fears that the negative media attention is likely to impact the company’s ability to raise capital in the near term.
On February 6, Goldman Sachs reduced its price target on Blue Owl Capital Inc. (NYSE:OWL) to $14 from $16.25. The firm maintained its Neutral rating on the shares, noting that alternative asset managers have continued to face pressure on their share prices following the release of fourth quarter results. The broader group is down roughly 15% year-to-date and has declined about 10% over the past week.
Blue Owl Capital Inc. (NYSE:OWL) is an alternative asset manager that offers capital solutions to mid-market companies. With an emphasis on credit, real assets, and GP strategic capital, it provides private financing, direct lending, opportunistic lending, equity financing, and leasing solutions. It is well-reputed for delivering a differentiated route to private markets and secular growth trends.
8. Zillow Group Inc. (NASDAQ:ZG)
Zillow Group Inc. (NASDAQ:ZG) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On February 12, DA Davidson adjusted the target price for Zillow Group Inc. (NASDAQ:ZG) shares to $75, down from $95. The firm maintained a Buy rating on the shares, with a revised upside potential of almost 63%.
DA Davidson noted that the company reported a mixed quarter, but has offered impressive guidance in the face of a soft housing market. However, the firm maintained the 2026 adjusted EBITDA estimate for the company despite the elevated legal costs.
On February 11, Cantor Fitzgerald reduced its price target on Zillow Group Inc. (NASDAQ:ZG) from $68 to $56. The firm maintained its Neutral rating on the shares, highlighting that Zillow reported Q4 revenue slightly above expectations, though EBITDA came in modestly below street estimates.
Strength in the Rentals segment and improving trends in the for-sale business supported revenue performance. Looking ahead, Zillow’s Q1 revenue guidance came in above estimates, but EBITDA is expected to face pressure from higher legal costs.
Zillow Group Inc. (NASDAQ:ZG) is a technology-enabled platform for the real estate market, operating through websites and mobile applications. It offers marketplaces for rentals, construction, agents and advertising of properties. Moreover, it also offers SaaS solutions for real estate transaction management. The company ensures a seamless experience for users who benefit from end-to-end real estate transaction solutions.
7. Upstart Holdings Inc. (NASDAQ:UPST)
Upstart Holdings Inc. (NASDAQ:UPST) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On February 19, BTIG maintained a Neutral rating on Upstart Holdings Inc. (NASDAQ:UPST). The firm noted that the company introduced its new “Cash Line” product, which will offer approved Upstart customers a $200 to $5,000 revolving line with instant access, flexible repayment options, and a $10 monthly membership fee for lines up to $500, whereas lines above $500 will have a 5-36% APR.
The new product is similar to offerings from Dave, Chime, and Brigit, but it stands out by offering no additional fee for expedited access, which will enable it to compete in the Earned Wage Access market.
On February 17, Compass Point analyst Giuliano Bologna upgraded his rating on Upstart Holdings Inc. (NASDAQ:UPST) from Sell to Neutral. The analyst also raised the firm’s price target from $20 to $30 following the company’s fourth quarter report.
Bologna noted that Upstart’s outlook through fiscal 2028 appears ambitious, but if the company successfully executes on its long-term plans, the stock may no longer appear expensive at current levels.
Upstart Holdings Inc. (NASDAQ:UPST) is a cloud-based artificial intelligence lending platform that approves consumers for credit. The company has a strong emphasis on risk reduction and partners with banks, credit unions, and other lenders. It offers several products such as unsecured personal loans, auto refinancing, auto secured loans, and home equity lines of credit.
6. Wix.com Ltd. (NASDAQ:WIX)
Wix.com Ltd. (NASDAQ:WIX) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On March 4, Wix.com Ltd. (NASDAQ:WIX) reported its fourth quarter revenue of $524.3 million, missing the $546.2 million consensus. Despite this, the bookings rose 15% to $535 million. CEO Avishai Abrahami stated:
2026 marks a defining new chapter for Wix as we enter an era of the internet that is evolving exponentially faster through AI advancements, with Wix Harmony and Base44 leading our roadmap.
Driven by better-than-expected conversion and Base44’s $100 million ARR, these flagship products aim to expand Wix’s TAM while leveraging AI for long-term monetization.
Back on February 2, Ken Wong from Oppenheimer reduced the firm’s price target on Wix.com Ltd. (NASDAQ:WIX) to $130 from $160, yielding a revised upside potential of more than 55%. The analyst maintained his Outperform rating on the stock despite some pressure on software multiples.
Wong noted mixed sentiment around core growth, Base44, and margins. The analyst expects bookings and revenue to stand slightly above consensus, and remains optimistic about FY26.
Wix.com Ltd. (NASDAQ:WIX) is a cloud-based web development platform that allows registered users to manage and grow their online businesses through AI-enabled tools. The company offers various services such as Wix Editor, Wix Studio Velo by Wix, Wix App Market, Wix marketplace and more.
5. Klaviyo Inc. (NYSE:KVYO)
Klaviyo Inc. (NYSE:KVYO) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On March 2, Klaviyo Inc. (NYSE:KVYO) announced a $500 million authorization for the repurchase of its Series A common stock, approved by its board of directors. The company plans to immediately initiate an accelerated share repurchase for $100 million as an initial component of the newly approved buyback program. This signals a proactive approach to capital return.
Back on February 11, Needham analyst Scott Berg reduced the firm’s price target on Klaviyo Inc. (NYSE:KVYO) to $30 from $45. The analyst maintained his Buy rating on the stock, which still offers almost 54% upside at the current level, after the revision.
Despite the downward adjustment of the target price, Berg highlighted very strong fourth-quarter results for Klaviyo Inc. (NYSE:KVYO). The company delivered revenue outperformance, which was driven by robust sales and customer expansion during the holiday season.
Klaviyo Inc. (NYSE:KVYO) delivers an AI-first SaaS platform for B2C clients that helps in their customer relationship management functions. The platform enables data storage, campaigns, marketing automation, and analytics. It also allows for customer service integration and omni-channel marketing tools such as emails, SMS, and WhatsApp marketing.
4. monday.com Ltd. (NASDAQ:MNDY)
monday.com Ltd. (NASDAQ:MNDY) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On February 10, Cantor Fitzgerald analyst Thomas Blakey reduced the price target on monday.com Ltd. (NASDAQ:MNDY) to $95 from $148. The analyst reaffirmed his Overweight rating on the stock, yielding a revised upside potential of 25% despite the downward revision.
Blakey noted that monday.com Ltd. (NASDAQ:MNDY) expects to face downward revisions to its 2026/2027 forecasts and will enter a stricter “show me” phase after management indicated it will no longer discuss the $1.8 billion 2027 target.
On February 10, DA Davidson reduced the firm’s price target on monday.com Ltd. (NASDAQ:MNDY) to $100 from $150. The firm maintained its Buy rating on the shares, highlighting that the company reported a smaller-than-usual quarterly beat, which was driven by continued uncertainty in demand trends among its SMB customer base. As a result of these softer demand dynamics, the company’s forward guidance came in below street expectations.
monday.com Ltd. (NASDAQ:MNDY) is a software applications developer that operates a cloud-based visual Work Operating System. This platform contains modular building blocks that are used for creating software applications and scaling workflows for enterprises. It delivers customized work management tools to efficiently manage processes and projects.
3. Mobileye Global Inc. (NASDAQ:MBLY)
Mobileye Global Inc. (NASDAQ:MBLY) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On February 24, Mobileye Global Inc. (NASDAQ:MBLY) and Elektrobit announced their collaboration to integrate EB Corbos Linux for Safety Applications into Mobileye Drive, which is a scalable Level 4 autonomous driving system. Mobileye will be using EB Corbos Linux for Safety Applications, which is safety-compliant, to provide car-grade features and application updates.
Mobileye Drive is a scalable autonomous driving system designed to enable carmakers and transport operators to make robotaxis, ride-pooling, public transport, and goods transport fully autonomous. Mobileye is currently evaluating its autonomous driving system in various parts of Europe and North America.
On January 23, Canaccord reduced its price target on Mobileye Global Inc. (NASDAQ:MBLY) from $30 to $24, while maintaining its Buy rating on the shares. Canaccord noted that being optimistic on Mobileye’s long-term earnings potential has become increasingly difficult for investors.
Market optimism has been tempered by a cycle of guidance reductions that have weighed on sentiment towards the stock. In addition, the perception that the company has struggled to secure next-generation OEM partnerships has contributed to investor caution.
Mobileye Global Inc. (NASDAQ:MBLY) develops advanced driver assistance systems (ADAS) and autonomous driving technologies (AV). It delivers end-to-end solutions comprising Base ADAS, Cloud-Enhanced ADAS, and Surround ADAS. It also offers safety features, including collision warning, lane departure warnings, headway monitoring, speed limit indicator, blind spot detection, and more.
2. Flutter Entertainment plc (NYSE:FLUT)
Flutter Entertainment plc (NYSE:FLUT) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On March 2, Canaccord Genuity analyst Jason Tilchen decreased the firm’s price target on Flutter Entertainment plc (NYSE:FLUT) to $220 from $270. The analyst maintained his Buy rating on the stock, with a revised upside potential of more than 95%.
The reduction follows disappointing fourth-quarter revenue and profitability misses in both the U.S. and International segments. Analysts emphasized lower FanDuel engagement due to uncompetitive late-season NFL matchups and a prolonged stretch of sportsbook-friendly outcomes in the late fourth quarter and early 2026.
On January 30, Rothschild & Co Redburn decreased the firm’s price target on Flutter Entertainment plc (NYSE:FLUT) from $252 to $237, which still results in an impressive upside potential of over 110%. The firm maintained its Buy rating on the stock.
Rothschild & Co Redburn cited soft fourth-quarter state data and a revenue miss as reasons for the downward adjustment. The firm expects 2026 revenue growth to remain moderate, but anticipates the 2026 FIFA World Cup to offer support to online betting growth.
Flutter Entertainment plc (NYSE:FLUT) is an online sports betting and gaming company that operates internationally. Its iGaming portfolio includes blackjack, roulette, slot machines, poker, and rummy. It also offers sports betting brands such as BetFair, Paddy Power, Sky Betting, Sports Bet, and FanDuel.
1. Atlassian Corporation (NASDAQ:TEAM)
Atlassian Corporation (NASDAQ:TEAM) is one of the 12 best buy-the-dip stocks to buy according to Wall Street analysts.
On February 6, Oppenheimer lowered the firm’s price target on Atlassian Corporation (NASDAQ:TEAM) to $150 from $275. The firm maintained its Outperform rating on the stock, which still yields more than 95% upside potential at the prevailing level.
Despite solid second-quarter results beating all key metrics and reaffirming long-term growth targets, the firm cites AI headwinds for the price target reduction. Oppenheimer views the current valuation as a compelling long-term entry point.
On February 6, Ryan MacWilliams from Wells Fargo reduced the firm’s price target on Atlassian Corporation (NASDAQ:TEAM) from $216 to $155. The firm maintained its Overweight rating on the shares.
MacWilliams noted that the broader SaaS sector remains in a challenging position due to current sentiment, where management teams are facing higher performance expectations even as valuations decline.
Although Atlassian delivered solid overall results, the analyst pointed out that the Q2 cloud revenue beat was slightly lighter than expected. In addition, the company’s Q3 cloud revenue guidance introduced some additional concerns, which added a degree of uncertainty to what was otherwise a solid quarterly report.
Atlassian Corporation (NASDAQ:TEAM) delivers collaboration, project management, and IT service tools that help enterprises in integrating their teams through a subscription-based model. Some of its offerings include Jira, Confluence, Trello, and Loom. The company covers a broad set of solutions such as project management, document sharing, video communication tools, service management, and Chat & Agent capabilities.
While we acknowledge the potential of TEAM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TEAM and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Oversold Financial Stocks to Invest in According to Hedge Funds.
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