The recent selloff has led to some appetizing opportunities to pick deals. So what are the best buy-the-dip stocks now? Here’s a list of some of the most promising companies in terms of growth rates.
Affirm
- SYMBOL: AFRM
- DESCRIPTION: Affirm is a financial technology company. Founded in 2012, the company allows users to determine payment setups when making major purchases. The company has partnered with a variety of major vendors in order to make it easy for consumers to select their own loans and payment options when making significant purchases on the internet.
- ONE MONTH MOVEMENT: Down 42.98%
- WHY THIS IS A BUYING OPPORTUNITY:
- Solid fundamentals: Shares doubled when Affirm had its IPO, and with good reason – the company has a solid business plan that is more in demand now than ever. Customers have come to expect flexibility in their payment options and affirm powers the technology that makes this happen.
- Business relationships: Affirm has developed a series of business relationships with huge vendors and is the exclusive “buy now, pay later” vendor of some of the biggest names in retail. This includes Amazon, Walmart, Shopify, and more. Relationships like this help to ensure that Affirm can succeed in any challenging business environment, regardless of their temporary stock dips.
- Experienced leadership: Affirm was founded by members of the so-called PayPal Mafia, including Max Levchin and more. These are individuals with extensive leadership in the tech and financial sectors. As such, it is likely that they have the experience, expertise, and connections that are necessary to help the company recover from any temporary financial blip.
Upstart
- SYMBOL: UPST
- DESCRIPTION: Upstart is an AI lending platform. It uses a variety of metrics not typically used by banks or credit unions when making determinations about the creditworthiness of potential borrowers. This includes factors like employment, education, and more.
- ONE MONTH MOVEMENT: Down 36.18%
- WHY THIS IS A BUYING OPPORTUNITY:
- Initial growth: Upstart had its IPO in 2020 and initially showed massive growth, rising by nearly 1,000%. The company started at $44.09 and hit an all-time high of $390 a few months later. It has since fallen dramatically from those highs. This at least shows the potential of a company like Upstart to experience major growth over the next few years.
- Revenue and customer growth: According to an independent analysis of the company, it shows solid growth in its fundamentals. Revenue and customer growth – arguably the two most important metrics for a company like Upstart – continue to show the potential for solid growth. Many of the reasons for its fall have to do with larger economic factors. However, despite these issues, the company continues to report solid growth. It also has a variety of competitive advantages over some of its similarly situated competitors, including highly effective financial growth and risk models.
- Experienced leadership: Leaders of Upstart include David Girouard (former Google President) and other similarly situated individuals. These are people who have developed the educational background and business expertise necessary to run a solid business plan like the one developed by Upstart.
Celsius Holdings
- SYMBOL: CELH
- DESCRIPTION: Celsius Holdings is the holdings company for the Celsius brand of drinks. The company offers a variety of drinks in many areas. It specifically prides itself on offering healthy drink alternatives, including drinks with no sugar, sodium, artificial coloring, or more.
- ONE MONTH MOVEMENT: Down 38.04%
- WHY THIS IS A BUYING OPPORTUNITY:
- Consumer demand: The past few years have brought about a shift in demand within the food and drink market. Brands that are interested in healthy products have faired much better, and even the major players in this industry – like Coca-Cola and Pepsi – have shifted more towards this market. As such, it stands to follow that Celsius’ product line is well-suited to take advantage of this shifting consumer demand.
- Improving Fundamentals: The business shattered its most recent earnings expectations, and its fundamentals continue to improve. Other analyses have attributed much of the share price decline to technical deterioration, but it seems that the fundamentals of their market are still strong.
- Acquisition potential: The business has developed a brand, manufacturing process, and product line that may make it ripe for a potential take-over. This would have a very positive impact on CELH stock price.
SoFi
- SYMBOL: SoFi
- DESCRIPTION: Originally a lending business and now a bank. Much of SoFi’s lending revolves around student loans, mortgages and personal loans.
- ONE MONTH MOVEMENT: Down 7.35%
- WHY THIS IS A BUYING OPPORTUNITY:
- Bank Charter: SoFi recently had its application to become a bank approved. This opens a huge array of business investment opportunities for the business, and it stands to reason that this will expand its product lines – and thus profit. While the stock has seen some upward movement recently on the heels of this bank charter news, there is reason to believe that the stock is currently undervalued in relation to where it may move.
- Record volume: The opportunity has not gone unnoticed by investors, and SoFi stock recently posted all-time record volume. However, it still remains down compared to where it was a month ago, and it is still more than 50% down from its 52-week high. This may imply that the stock has an upside opportunity for savvy investors.
- Improving analysis sentiments: Other analysts are upgrading their ratings for this stock. Barron’s, for example, recently rated it as “outperform” and set a price target of $20 for the stock.
Asana
- SYMBOL: ASAN
- DESCRIPTION: Asana is a personal and workplace productivity tool. It has developed integrated apps and websites that enable project management. This project management allows for teams to work better together.
- ONE MONTH MOVEMENT: Down 36.43%
- WHY THIS IS A BUYING OPPORTUNITY:
- Strong fundamentals: The fundamentals of the business are still very sound, despite the serious pullback over the past month. Much of its pullback is due to an overall decline in the tech industry. Profits are up 70% over the past year, and its membership and overall userbase continues to display significant growth.
- Ongoing pandemic: While much of the workplace return to some semblance of normalcy, much of it does not. The continued emphasis on the remote workplace provides Asana with a fundamental opportunity that cannot be overlooked. Businesses across the world will be forced to lean more heavily on solutions that enable enhanced coordination, particularly as fewer and fewer people actually work in the same physical workplace. This, in turn, provides platforms like Asana with a golden opportunity. Even if restrictions were to end tomorrow, many workplaces have become totally dependent upon software like Asana in order to function. Thus, Asana has become a rare breed: It has benefitted from the ongoing pandemic and changing workplace, but it won’t be hurt when COVID finally abates.
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