5 Best Buy-the-Dip Growth Stocks to Buy Now

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In this article, we discuss 5 best buy-the-dip growth stocks to buy now. If you want to see more stocks to buy on the dip, click 10 Best Buy-the-Dip Growth Stocks to Buy Now.

5. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 80

YTD Share Price Decline as of May 27: 37.05%

Tesla, Inc. (NASDAQ:TSLA), the American EV giant, is down over 37% year-to-date as of May 27. With more individuals and corporations concerned about climate change and governments encouraging lower carbon emissions, the electric vehicles sector is expected to explode in the future, which makes Tesla, Inc. (NASDAQ:TSLA) one of the best buy-the-dip growth stocks to buy now. 

On April 20, Tesla, Inc. (NASDAQ:TSLA) reported earnings for the first quarter of 2022. The company announced an EPS of $3.22, above consensus estimates by $0.95. The revenue of $18.76 billion grew 80.54% year-over-year and beat analysts’ predictions by $917.76 million. 

Credit Suisse analyst Dan Levy on May 27 said that Tesla, Inc. (NASDAQ:TSLA)’s long-term opportunity remains strong, making him believe the recent pullback in the shares is an attractive entry point. He maintained an Outperform rating on the stock with an $1,125 price target after viewing Tesla, Inc. (NASDAQ:TSLA)’s Fremont facility. The analyst expects the company’s short-term, specifically Q2, to reflect “some regression” in margins and total deliveries, driven by the production headwinds in Shanghai.

Among the hedge funds tracked by Insider Monkey, 80 funds held bullish positions in Tesla, Inc. (NASDAQ:TSLA) at the end of March 2022, compared to 91 funds in the last quarter. ARK Investment Management reported a prominent stake in the company, comprising 1.5 million shares worth $1.7 billion. 

Here is what Baron Fifth Avenue Growth Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:

“During the first quarter, we bought back shares in Tesla, Inc., which designs, manufactures, and sells electric vehicles, solar products, energy storage solutions, and batteries. We believe that despite the run in the stock over the last few years, Tesla presents a favorable risk/reward profile and remains a Big Idea with only about 1% market share of the automotive market. Since we bought the stock during the first quarter, shares increased 27.1%, despite a complex supply-chain environment, on continued revenue growth and record profitability. Robust demand and operational optimization allow the company to offset inflationary pressures while vertical integration provides flexibility around supply bottlenecks. Moreover, we expect new localized manufacturing capacity to drive additional efficiencies while software initiatives, including the autonomous driving program, are accelerating, offering valuable optionality to the stock.”

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