The recent market downturn could indicate months-long volatility, with significant drops in value. However, the good thing about a price drop is the opportunity it gives investors to buy in at a lower price. Keeping this in mind, let’s see which are the best five uptrend stocks to buy on the next dip:
- Chevron (CVX)
- Coca-Cola (KO)
- Raytheon (RTX)
- Bristol-Myers Squibb (BMY)
- Alcoa (AA)
1. Chevron (CVX)
CVX stock is soaring past its peers, making it a good investment option now.
Chevron has been an energy sector leader over the past few years. Like any other oil and natural gas company, it has benefited from rising energy prices. Moreover, the price of CVX stock has been rising following Russia's invasion of Ukraine as oil prices climbed to $130 per barrel earlier this week.
Apart from this, the company also has a fair amount of exposure to liquefied natural gas. The company has found several acquisition opportunities the previous year and is ready to fuel its growth in 2022, making CVX a solid buy on the next dip.
2. Coca-Cola (KO)
The KO shares are poised to produce solid returns moving forward.
Beverage conglomerate Coca-Cola has always been one of the top holdings of Warren Buffett. KO is a potential stock to invest in as it has strong footprints in other high-potential categories like energy and ready-to-drink tea.
As the shares are fresh off all-time highs, investors are now willing to pay 25 times the earnings for the stock. Moreover, the company’s cash flow and profits are entirely on display, driving bulls to invest in KO. Moving forward, if the company grows at the pace management is hoping for, investors can expect total returns in the 10% to 12% range based on EPS growth and a 3% dividend yield from the stock.
3. Raytheon (RTX)
RTX stock is worth buying on the next dip as the commercial aviation recovery builds momentum.
Commercial aerospace businesses are now generating an overwhelming bulk of the marginal increase in profit. Stocks like RTX have a multi-year pathway of growth ahead of them. The company has plans to hit a target of $10 billion in 2025.
Yet another reason to invest in Raytheon stock is its dedicated management team. In addition, Raytheon's roadmap for 2022 illustrates the strength of the recovery in commercial aerospace. As such, Raytheon remains one of the top uptrend stocks to buy in 2022 for the next dip.
4. Bristol-Myers Squibb (BMY)
Bristol-Myers Squibb still remains a go-to investment option for investors.
Shares of the pharma giant Bristol Myers Squibb have been notably up over the past few weeks. This is because the company has invested in several new and innovative products to make up for its sales headwind.
Revlimid, the company's biggest moneymaker, is expected to generate $9.5 billion to $10 billion in sales this year. Bristol Myers has also profited from its immuno-oncology drugs as their sales popped to new highs. Bristol has stellar free cash flows and has plans to bring several new products to the market. This will eventually boost BMY’s share price performance, making it a good buy on the next dip.
5. Alcoa (AA)
Highly bullish statements about the price of AA stock have positioned Alcoa as a good buy now.
Alcoa is one of the world's largest aluminum companies. The shares of AA rose almost 13.5% last week. The move appears to be a follow-up to the company's presentation at an industry conference, where it laid down its plans for the future. The company reiterated that it has no current plans to build any new production facilities and will be focusing on the existing product developments. This has placed the company in a superior position as it helps the entire industry in keeping the metal’s price buoyant.
Moreover, Alcoa is designing a clean production technology ready for prime time before it could design, locate, and build a new smelter. All these have positioned the AA stock as a potential buy for long-term investors.
The perks of the stock market are that even amidst a market crash, there would always be a bull market somewhere. So consider these five uptrend stocks on the next dip to potentially generate good returns over the long run. Also, before investing in the stock market, always ensure that you have a detailed investment plan.
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