Markets often present the opportunity to grab beaten-down fundamentally strong stocks due to the probability of an increase once the short-term headwinds diminish, resulting in a capital gain. This explains the concept of “Buy the Dip,” a principle of investing cherished among intelligent investors across the globe
Over the past year, inflationary pressure, the Russia-Ukraine war, and labor market issues have pressurized bourses. Although this situation might hinder an average investor, the wiser ones consider these headwinds a golden opportunity and buy the stocks at a lower price, knowing that the downtrend is temporary and the factors causing it are fleeting.
Given this backdrop, we expect RCM Technologies, Inc. RCMT, Datatec Limited DTTLY, EVERTEC, Inc. EVTC and Xperi Inc. XPER to be sound choices at their current price levels.
Market Sometimes Offers Discounted Stock Prices
Declining stocks provide investors with a buying opportunity. This might sound very rewarding, but it also carries the risk of following the herd and purchasing stocks that are too weak to recover.
Hence, selecting the right stock that is anticipated to remain fundamentally strong based on your investment goals and risk profile is extremely important.
Warren Buffett once remarked, “The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. That's what Ben Graham taught us. A hundred years from now, they will still be the cornerstones of investing.”
To make an informed decision, extensive research must be done on the companies, industry, economy, markets and other factors.
Here Are Some Present Good Picks
RCM Technologies: This provider of business and technology solutions in the United States, Europe, Canada and Puerto Rico is down 20.1% in the year-to-date period.
RCMT currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A, a combination that our research shows offers the best investment opportunities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for the company’s 2024 earnings has moved 1.3% north in the past 60 days. Earnings are expected to increase 11.9% and 20.34% year over year in 2024 and 2025, respectively.
RCM Technologies, Inc. Price
RCM Technologies, Inc. price | RCM Technologies, Inc. Quote
Datatec Limited: This company, with its subsidiaries, offers information and communication technology solutions and services worldwide. The stock has plunged 14.9% in the year-to-date period.
DTTLY presently has a Zacks Rank #2 and a VGM Score of A. The consensus estimate for fiscal 2025 earnings has moved 10.9% north in the past 60 days. Earnings are anticipated to increase more than 100% and 16.4% year over year in fiscal 2025 and 2026, respectively.
DATATEC Price
EVERTEC: This company engages in transaction processing business and financial technology across Latin America and the Caribbean. The stock has plunged 11.7% in the year-to-date period.
EVTC presently carries a Zacks Rank #2. The consensus estimate for the company’s 2024 earnings has gained 2.6% in the past 60 days. Earnings are expected to increase 10.6% and 4.3% year over year in 2024 and 2025, respectively. It has a long-term earnings growth expectation of 8.6%.
Evertec, Inc. Price
Evertec, Inc. price | Evertec, Inc. Quote
Xperi: This consumer and entertainment technology provider across the globe is down 8.6% in the year-to-date period.
XPER currently carries a Zacks Rank #2. The consensus mark for the company earnings in 2024 has increased 61.1% in the past 60 days. Earnings are anticipated to increase more than 100% and 3.5% year over year in 2024 and 2025, respectively.
Xperi Inc. Price
Xperi Inc. price | Xperi Inc. Quote
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Be First to New Top 10 Stocks >>Evertec, Inc. (EVTC) : Free Stock Analysis Report
Xperi Inc. (XPER) : Free Stock Analysis Report
RCM Technologies, Inc. (RCMT) : Free Stock Analysis Report
DATATEC (DTTLY) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
