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5 Stocks to Buy on the Dip

David Bartosiak

Yesterday was a terrible day for stocks. The broad market came under pressure early and selling was simply relentless. In conditions like that, it can feel like there is nowhere to hide. Under the desk sure sounds like a good place on days like that. You may be surprised to hear that even during terrible market downturns like that, there are diamonds in the rough. One way to find these diamonds is to lean on the power of the Zacks Rank.

The Zacks Rank helps investors identify stocks with the strongest earnings trends. These trends take months to develop and don’t shift on a dime like price can. This makes the Zacks Rank a perfect initial litmus test when searching for stocks to buy.

The other important element to screen for is relative strength to the broad market. Stocks which have been outperforming their peers could indicate serious investor interest. On days where the broad market is selling off dramatically, these stocks could be the one bucking the trend. When things turn around, they are best positioned to benefit from the rising tide.

I’ve compiled a list of five Zacks Rank #1 (Strong Buy) stocks that are within a few percentage points of their 52-week highs despite the markets recent downward action.

Fastly (FSLY)

Fastly, Inc. Price and Consensus

Fastly, Inc. Price and Consensus

Fastly, Inc. price-consensus-chart | Fastly, Inc. Quote

Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer's applications. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the Internet. It is a programmable platform designed for Web and application delivery. 

Acacia Communications (ACIA)

Acacia Communications, Inc. Price and Consensus

Acacia Communications, Inc. Price and Consensus

Acacia Communications, Inc. price-consensus-chart | Acacia Communications, Inc. Quote

Acacia Communications, Inc. develops, manufactures, and sells high-speed coherent optical interconnect products in the United States, China, Germany, Thailand, and internationally. The company offers embedded and pluggable module products consisting of optical interconnect modules with transmission speeds ranging from 100 to 1,200 gigabits per second for use in long-haul, metro, and inter-data center markets. It also provides semiconductor products, such as low-power coherent digital signal processor application-specific integrated circuits and silicon photonic integrated circuits that are integrated into embedded and pluggable modules.

Wayfair (W)

Wayfair Inc. Price and Consensus

Wayfair Inc. Price and Consensus

Wayfair Inc. price-consensus-chart | Wayfair Inc. Quote

Wayfair Inc. engages in the e-commerce business in the United States, Europe, and internationally. It provides approximately 14 million products for the home sector under various brands. The company offers selection of furniture, décor, decorative accents, housewares, seasonal décor, and other home goods through its sites, including Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold.

Zoom Video (ZM)

Zoom Video Communications, Inc. Price and Consensus

Zoom Video Communications, Inc. Price and Consensus

Zoom Video Communications, Inc. price-consensus-chart | Zoom Video Communications, Inc. Quote

Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company's product portfolio includes Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system that provides secure call routing, call queuing, call detail reports, call recording, call quality monitoring, voicemail, switch to video, and other services, as well as inbound and outbound calling services; and Zoom Chat enables sharing messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices for meeting and phone customers. 

Tesla (TSLA)

Tesla, Inc. Price and Consensus

Tesla, Inc. Price and Consensus

Tesla, Inc. price-consensus-chart | Tesla, Inc. Quote

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, Netherlands, Norway, and internationally. The company operates in two segments, Automotive; and Energy Generation and Storage. 

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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
 
Wayfair Inc. (W) : Free Stock Analysis Report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
Fastly, Inc. (FSLY) : Free Stock Analysis Report
 
Acacia Communications, Inc. (ACIA) : Free Stock Analysis Report
 
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