Stocks 5 Stocks to Buy the Dip, According to AI
Tom Yeung here with your Sunday Digest. Last week, I revealed five stocks from Luke’s quantitative model. These high-quality firms were all counter-cyclical, so they typically hold their value during falling markets. Since then, these companies have performed well. The five stocks have traded flat on average, despite crushing selloffs elsewhere. Shares of Nvidia Corp. (NVDA) plummeted 10% on Wednesday alone. But what about investors seeking a bit more cyclical risk? There are some difficulties with this approach. Decades of research show that stocks generally keep moving in a single direction, so rising stocks keep going up, and falling ones keep going down. Some call contrarian investing like catching a falling knife; in my experience, it’s more like catching a falling piano. Emotions also get in the way. It takes nerves of steel to buy stocks when they’ve fallen by 20% or more… and it’s tempting to cut losses whenever shares drop even further. That’s why “buy the dip” strategies are hard to get right. My worst-performing “buy the dip” stocks from last fall, Oscar Health Inc. (OSCR), saw shares plummet 20% in the month after my recommendation. I’m not exactly proud of that. Still, getting things right can yield phenomenal results. My same group of “buy the dip” recommendations included enough gems like these to flip overall performance solidly positive. Informatica Inc. (INFA): +5% Seagate Technology Holdings plc (STX): +10% Meta Platforms Inc. (META): +20% Now, our corporate partner TradeSmith believes they’ve found a way to help longer-term investors find attractive entry points into great long-term stocks. They’ve taken some of Wall Street’s brightest and built an AI system using over 1.3 quadrillion data points. The result is An-E (short for Analytical Engine), the top AI-powered algorithm from TradeSmith. The system is based on a short, 30-day holding period that reacts almost instantaneously to the news. That allows investors to compound gains over time. At Wednesday’s AI Predictive Power Event, TradeSmith CEO Keith Kaplan demonstrated how to get your own forecasts and use An-E’s confidence gauge to stack the odds in your favor. He even shared a few of An-E’s latest predictions. (You can watch a replay of the event here.) In the meantime, I’ve been given permission to share five picks from An-E as well. These are fundamentally sound stocks I’ve been watching for a long while now… and An-E is giving the green light to buy. Let’s jump in.
https://investorplace.com/2025/04/5-stocks-to-buy-the-dip-according-to-ai/
