In this article, we will take a look at some of the best buy-the-dip stocks that are currently offering attractive upside potential. On June 5, CNBC reported that U.S. equities fell on Friday, weighed down by a sell-off in major chip stocks and rising Treasury yields following stronger-than-expected May jobs data. The Dow Jones Industrial Average dropped 491 points, or almost 1%. The S&P 500 dropped more than 2%, while the Nasdaq Composite took a dip of more than 3%, marking its biggest decline since April 2025. Broadcom, Marvell Technology, Micron Technology, Intel, and Advanced Micro Devices were among the semiconductor stocks that had the biggest drops, with losses ranging from 6% to 12%.
The Bureau of Labor Statistics reported that while the unemployment rate stayed at 4.3%, the non-farm payrolls rose by 172,000 in May, above projections of 80,000. Following the news, Treasury yields jumped as anticipation of changes in Federal Reserve policy grew, with the 10-year yield rising above 4.5% and the 30-year yield surpassing 5%.
The S&P 500 is down more than 2% for the week, on course for its first weekly fall in 10 sessions. Anshul Sharma of Savvy Wealth described the drop as profit-taking, noting that even though the AI narrative remains largely intact, relatively positive news can still fall short when expectations are high. With that background, let’s explore our 12 Best Buy-the-Dip Stocks to Invest In Now.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed companies with market capitalizations above $2 billion. We then shortlisted stocks that have delivered 1-year returns below -30%, and currently trade at a forward PEG ratio of less than 1.
We narrowed our search further to include stocks with at least 35% consensus upside potential, as of the June 10 close. In the final stage of our search, we selected 12 stocks with the greatest upside and ranked them in ascending order.
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 599.2% since May 2014, beating its benchmark by 372 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 invest in now.
On June 8, Stifel updated its financial outlook on Adobe Inc. (NASDAQ:ADBE) heading into the company’s upcoming earnings release. Analyst J. Parker Lane decided to lower the firm’s price target on the shares from $400 to $350, while keeping a Buy rating on the stock.
Parker explained that it expects an organic revenue beat of roughly 1.5% alongside modest annualized recurring revenue (ARR) growth for the second quarter. The analyst anticipates a slight uptick for both full-year revenue and the broad ARR outlook. However, looking at Adobe’s recent track record against its own guidance metrics, Parker views such a positive scenario as the base case that is already reflected in the stock price.
On June 5, Citigroup reiterated its Neutral rating on Adobe Inc. (NASDAQ:ADBE) right before the company’s upcoming earnings report. The firm decided to raise its price target on the shares from $253 to $264, leading to an adjusted upside of around 14% at the current level.
Citi pointed out that a recent expansion in multiples across the broader software sector was the primary reason for this target revision. However, the firm remains quite cautious regarding Adobe’s near-term outlook heading into the print. Specifically, the analyst noted risks surrounding the company’s fiscal 2026 outlook, explaining that current freemium and AI monetization initiatives likely won’t generate enough momentum to offset a distinct lack of pricing benefits during the second half of the year.
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.
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