The principle of “Buy the Dip” offers smart investors a chance to acquire fundamentally strong stocks during temporary downturns. Amid inflation, geopolitical tensions, and market volatility, undervalued stocks like RCM Technologies, Datatec, EVERTEC, and Xperi show significant recovery potential.
- RCM Technologies (RCMT): The stock has dropped 20.1% YTD but holds a Zacks Rank #2 (Buy) and a VGM Score of A. Its earnings for 2024 and 2025 are projected to grow by 11.9% and 20.34%, respectively, supported by a 1.3% upward revision in estimates over the past two months.
- Datatec Limited (DTTLY): Down 14.9% YTD, Datatec also has a Zacks Rank #2 and a VGM Score of A. Its fiscal 2025 earnings are expected to grow by over 100%, with a 10.9% increase in consensus estimates. Continued growth of 16.4% is anticipated for fiscal 2026.
- EVERTEC (EVTC): The stock is down 11.7% this year but carries a Zacks Rank #2. EVERTEC’s 2024 earnings estimates have increased by 2.6%, with growth projections of 10.6% in 2024 and 4.3% in 2025. Its long-term earnings growth rate is estimated at 8.6%.
- Xperi (XPER): With an 8.6% decline YTD, Xperi holds a Zacks Rank #2. The company’s 2024 earnings estimates have surged by 61.1%, with earnings projected to more than double in 2024 and grow by 3.5% in 2025.
Stocks like RCMT, DTTLY, EVTC, and XPER provide attractive opportunities for investors seeking growth amid temporary market downturns. Their strong fundamentals and positive earnings outlooks make them prime candidates for recovery.
This story was originally featured on Yahoo.Finance.
Disclaimer: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
