Buy The Dip? Hedge Funds Are Buying MILLIONS of these 3 'Strong Buy' Stocks!

These three strong buy stocks have been dipping in price the past year, but hedge funds have been buying up millions of shares. So, let's get into it. All right, guys. Welcome back. Thank you all so much for being here. I hope you had a wonderful 4th of July long weekend. Today, we're taking a look at three big name stocks that are in the red this past year, but they do come in with a strong buy consensus from Wall Street, double-digit upside potential, a 10 out of 10 on the TipRanks Smart Score, and a big increase in hedge fund activity recently. So, we're going to dive into these companies, what it is that they do, and of course, what those Wall Street analysts are predicting for the stock's future. I came across these stocks using the TipRanks Stock Screener. Under the screener, I put in several filters, including a 10 out of 10 smart score, upside potential of over 20%, and a strong buy analyst consensus to get a list of companies below. You can check out the stock screener for yourself on the TipRanks website or right on the TipRanks mobile app. And we are in the final days of our 70% off sale for the 4th of July. So, if you want to unlock some premium investment research tools, now is the time to do so. Links will be in the pinned comment below. If you enjoyed today's video, make sure you hit that thumbs up button and that you're subscribed to the channel. Now, let's dive right into today's stocks. First up, we're taking a look at Vistra. They trade under the ticker VST, currently priced at $153 per share. The stock has fallen 22% over the past year, and in the last 3 months is down slightly at 1.7%. They do currently score an out perform on the TipRanks Smart Score. And in the last quarter, hedge funds have increased their overall holdings by 3 million shares. And when we take a look at that increased hedge fund activity, down below, we can see a list of companies, some adding to existing positions including one over $300 million and another at Lone Pine Capital for over $930 million. While we also have quite a few starting brand new positions. Vistra is one of the largest power generators in the United States running a mix of natural gas, nuclear, solar and battery storage assets that power millions of homes and businesses. With AI and data centers driving unprecedented electricity demand, Vistra has become a go-to name for investors betting on the power grid buildout. The stock is down largely on softer ERCOT forward power prices. But on May 6th, they did come out with a solid earnings report including an earnings beat and record adjusted EBITDA. Their Q1 earnings per share of $1.46 beat estimates by 14 cents and broke a long stretch of missing earnings estimates. The company reported adjusted EBITDA of $1.494 billion. That was a record for the first quarter and was up 20% year-over-year. Their gas fleet ran at 97% availability with their nuclear fleet at 100% and the company returned about $600 million to shareholders via buybacks and dividends. The company also received an investment grade upgrade from Fitch in mid-June and analyst at Bernstein initiated coverage on the Vistra stock with a buy. They said the US is undergoing a once-in-a-generation restructuring of how energy is produced, moved and consumed. They say gas funds the transition, utilities enables the buildout of infrastructure and clean energy is the ultimate destination. They believe Vistra's fleet of generation assets give it a double-barreled earnings event amid growing power demand. With 13 current analyst ratings, the Vistra stock does come in as a unanimous strong buy and the average price target of $225 implies an upside potential of 46%. Looking at the most recent ratings down below, they're all in the double digits, ranging from about 18% upside all the way to 90%. Our second stock is a name you're probably familiar with. We're taking a look at Uber. They trade under the ticker UBER, currently priced at $73.52. Their stock has lost 23% over the past year and has turned slightly green recently, up 3.7% and of course they score a 10 out of 10. And in the last quarter, hedge funds increased their holdings of Uber by 12 and 1/2 million shares. And when we take a look at that recent hedge fund activity, once again, we have a long list of companies adding to existing positions, many of them in the hundreds of millions and quite a few starting brand new positions as well. Uber is well-known as the ride-share and delivery app, but it's increasingly becoming a platform play, layering in grocery, freight, advertising and autonomous vehicle partnerships on top of its core mobility and delivery business. The Uber stock has been under pressure, some of that coming from them pausing their European food delivery expansion as they eyed up some potential acquisitions. They did also recently pause their strategic partnership with Waymo. Waymo's robo-taxis are no longer available on Uber's app in Phoenix, ending a three-year partnership in the city. While Uber is ready to launch a separate autonomous vehicle partnership, it did not name the partner. They shared their Q1 earnings report on May 6th, where they did come out with an earnings beat and showed solid top-line growth. Earnings per share came in at 72 cents, beating estimates by 3 cents per share. The company saw gross bookings up 21% year-over-year and they saw a record $3 billion returned to shareholders in the quarter. Their Uber One membership surpassed 50 million, up 50% year over year, and their AV mobility trips grew 10% year over year. Uber now has over 30 autonomous partners launching their Uber autonomous solutions, and remains on track to be live in up to 15 cities by year end. Just today, we heard from an analyst at Wells Fargo. They did lower their price target on the stock by just $2, and did maintain a buy rating. They said they expect another solid quarter and guide that are unlikely to disprove the AV bear case. Wells believes Uber should deliver solid double-digit US mobility volume growth in 2027, despite Waymo aggressively scaling its fleet, but the market needs some convincing evidence. Overall, Wall Street is bullish. With 30 current analyst ratings, the Uber stock comes in as a strong buy with 28 buys and two holds. The average price target is $108, implying an upside potential of 47%. Looking at those price targets down below, they range from an upside of 36% up to 70% upside. And for our third stock today, we have Full Truck Alliance. They trade under the ticker YMM, currently priced at $8.63. Their stock has dropped 31 and 1/2% over the past year, but has also turned slightly green in the last few months, up 2.9% and of course scoring a 10 out of 10 on the TipRanks Smart Score. And in the last quarter, we saw overall hedge funds holdings increase by over 10 million shares, 10.1 million shares to be exact. Looking at their list down below, this was actually all from a big addition to an existing holding at David Selected Advisors, bringing it to over 238 million. Full Truck Alliance is often called the Uber for trucking in China. It's the dominant digital freight matching platform connecting shippers with truckers, essentially the backbone of China's logistics network. They did come out with both an earnings and revenue beat for their Q1, which they shared on May 21st. Earnings per share of 17 cents beat estimates by 3 cents per share, while revenue of 411 million also surpassed expectations. The company's fulfilled orders reached 50 million in Q1, up about 14% year-over-year. Their transaction service revenue jumped 33% year-over-year, and they had a record fulfillment rate of 44.1% and about 1 week ago an analyst at JP Morgan upgraded their rating on the stock to a buy. They said the year-to-date sell-off has priced in most of the key negatives and reset expectations to a low bar. They say Full Truck's consensus earnings forecasts have been cut by 30% from the peak, lowering the bar and improving the stock's risk versus reward. JP Morgan believes Full Truck's regulatory overhang is fading into business as usual, while invoicing and credit are being rebuilt to remove toll risks. The stock does just have five current analyst ratings, but comes in as a strong buy with four buys and one hold. The average price target is $12.26, implying an upside potential of 42% and looking at those ratings down below, they range from an upside of 16% to 62%. So, that is a quick look at three strong buy stocks that have been dipping in price this past year, but have seen a lot of increased hedge fund activity. Let me know your thoughts on these three companies and which one you'd put on your watch list. I always appreciate hearing from you guys. Keep in mind these videos are never a suggestion to buy or sell any specific stock, so please make sure you always do your own research and due diligence. Thanks so much for watching. Have a great day and I'll see you back here next time.