The Stock Market Just Flipped - Top 5 Stocks To Buy

Despite the S&P 500 being up over 10% year to date, the market is starting to operate with the mindset of fear, the fear and greed index is now at 6 out of 100, representing extreme fear, and this is the lowest level since the April 2025 tariff sell-off. And in hindsight, we know that was a great buying opportunity. We've started to see significant sell-offs in more speculative markets. As an example, Bitcoin today is down nearly 6% already. It's down 13.5% this week and it's down 34.4% from its October high. Bitcoin is actually down over 16% on the year. Micro Strategy stock, which is known for being a leveraged play on Bitcoin, that is down 61% since July. And you can see it has given up a lot of its insane gains that it had over the past couple years. Palanteer is down 14% over the past month and 25% from its high. And this sell-off is now starting to bleed over into the broader market. Yesterday, the market started off up 2% after a great jobs report came out, plus Nvidia earnings, which were fantastic. But then a few hours into the trading day, everything flipped and we had a midday 3.3% sell-off. Now, the market's down nearly 3% over the past month and down 5% from its high. Even Nvidia ended the day negative, and the stock's down over 12% from its 2025 high. But there are some stocks that have had substantial sell-offs over the past month. As an example, Coreweave, which is an AI data center company, that sold off 44% this month. Micro Strategy down 41% just this month. Coinbase down 30%. Chipotle down 28%. Oracle down 23% and down 35% from its 52- week high. Investors are starting to get killed in these more speculative companies, which had been making money for a lot of the year. I saw this hilarious post earlier today where they were taking all these famous value investing books out of the trash can saying, "Please forgive me for my sins." By the way, those are all great books. And although that was a joke, there is a lot of truth to that meat. After all, we're investing in businesses and at a certain point, the fundamental value does matter. As an example, that's why you had a company like Google, which was undervalued for a lot of the year. And while these other stocks are starting to crumble, Alphabet stock is basically still at its all-time high. It's up 15.5% over the past month, and that's because there's a real business there with a reasonable valuation. And as this selloff starts to impact the broader market, we should be looking for highquality companies that represent attractive values. So today, I'm going to share my top five stocks to buy right now. Two of which I am personally buying myself. One being a high-quality big tech giant, and the other being a value dividend growth stock, which is currently yielding nearly 9 12%. So, let's get into the list. First, I just want to let everyone know that we currently have our Black Friday sale for dividend.com. You can get 50% off membership and lock it in for life. This is the stock research tool I use throughout the video. The link to the sales in the description and pin comment below. So, let's get to the top five stocks to buy that have sold off. And to help find these companies, I set up a screener. I typed in US stocks down from their 52- week high. And then I also added the one-mon performance so we could see both the percentage change from the 52- week high and the one-mon change. The first stock I'm going to bring up today is Meta Platforms, ticker symbol MEX. They are down 25% from their 52- week high and down about 20% over the past month. And the one thing you'll notice when I'm talking about this list is I'm focusing on quality. We want to buy great businesses that will continue growing their earnings well into the future. And as you can see, Meta has had a long-term history of growing their earnings per share. Based on earnings per share over the trailing 12 months, the company is trading at a 26p ratio, which for a dominant company with high growth like Meta, that's a pretty reasonable valuation. Analysts are expecting double-digit earnings per share growth in the coming years, including 30% EPS growth in 2026, which would give them a 19.8 P ratio based on today's stock price. And assuming these EPS estimates are hit, they would be generating $41 of earnings per share in fiscal 2029, which at today's stock price would be a 14.3P ratio. If we take a look at their key metrics, you can see that revenue per share at Meta has been growing at a 5-year compound annual growth rate of 21.25% and they're on their way to another year of high growth. Free cash flow per share is growing at 23.4% 4% compound annual growth rate. But we are starting to see slightly weaker free cash flow in fiscal 2025 due to ramped up AI capex. And that's really the main risk when investing in Meta stock. Because Meta, it's been printing money for a long time. They have a fantastic balance sheet, $194 billion of shareholder equity, over $44 billion of cash and short-term investments. They have negative net debt. But the biggest risk around the company is what they're spending on capex. And that really brings up the whole AI narrative, which is ironically the biggest opportunity and the biggest potential risk. If we take a look at their cash from operations, the company is making more money than ever and continues growing. In the recent quarter, they just generated over $30 billion in cash from operations. And you can see based on the trailing 12 months, that continues to grow every quarter. But Meta's capital expenditures are also growing at an extremely high rate. You're seeing this in all the big tech companies which are going heavy in AI. whether it's Meta, Google, Microsoft, Oracle, this ramped up to $18.8 billion in the latest quarter and over the trailing 12 months is $62.7 billion. And we're really in a cycle ramping up right now. Based on their outlook, they're expecting that to grow. Now, luckily, Meta has a fantastic high margin business that's very profitable, but this is hurting their free cash flow growth. As you can see, we are actually trending down over the trailing 12 months for the past 3 quarters. Now, as I said that they are still generating over 11 billion of free cash flow in the latest quarter. So, when we talk about Meta, you're analyzing that riskreward. Are they going to get a good return on that investment? Now, luckily, the stock price being lower gives you much more cushion to the downside. Right now, based on the 4P ratio for Meta stock, we are trading towards the lower end of its historic range. Aside from that fall 2022, early 2023 area where Meta was a screaming buy and I think Meta looks attractive here right now. Wall Street analysts have a consensus price target of $882. That implies the stock is 49% undervalued. The lowest price target on Wall Street is actually $810, which is significantly above the current price of $589. Also, another factor I think you got to consider here is that this is still a founder company. Mark Zuckerberg is highly involved and he's pivoting and going allin on AI. There was a lot of talent acquisitions earlier this year, a lot of money put into data center infrastructure, which is yet to really be seen. So, we're still kind of in that before period of uncertainty before we actually see the results of any of this. So, that could be a potential buying window. Stock number two I'm going to share today is a less speculative one. That's Visa, ticker symbol V. They are down 12.95% from their 52- week high and down 6.7% over the past month. Visa is an extremely high quality company that that rarely ever sees a significant sell-off. They have a dominant market position backed by network effects. So much so that Visa and Mastercard, they're kind of considered a duopoly. As you can see, they have a long history of earnings per share growth. And based on earnings per share over the trailing 12 months, the company is trading at a 31P ratio. Analysts are expecting double digit earnings per share growth in the coming years. So, forward-looking earnings for 2026. That's an 11.7% increase, which means based on today's stock price, you would be buying Visa stock at a forward-looking 25p ratio. If you're concerned about investing in AI stocks, Visa could be an option with a great business and growing earnings that really doesn't have that kind of risk. It's grown revenue per share at a 5-year compound annual growth rate of 15%. Free cash flow per share has grown at a 10-year keer of 16%. They have a great balance sheet, nearly $19 billion of cash in short-term investments. They have high return on invested capital around 31%. But part of the appeal with Visa is that they generate a ton of free cash flow. And they're actually not investing that much capital, especially relative to these other tech companies putting the money into AI data centers. Visa only spends $1.5 billion a year in capex. and it's been a very reasonable level of growth with cash from operations far exceeding the growth in capex leading to increasing free cash flow which allows them to pay a growing dividend to shareholders and consistently repurchase shares. The Visa dividend has grown at a 5-year compound annual growth rate of 15.9%. It's extremely sustainable with a 23% payout ratio and 21% based on free cash flow. The forward-looking dividend yield is 0.83%. That may seem low, but it's actually historically high for a company like Visa. If we take a look at Visa's dividend yield historically, 0.8% is on the high range. And over the past 5 years, there's only been a few points where you can buy Visa with a dividend yield this high. And if we look at the forward PE ratio for Visa stock, this 25 forward PE is also historically low. So Visa is quite reasonable in today's market. Stock number three I'm going to share today is Microsoft, ticker symbol MSFT. We're going back to big tech, but this is a company that I personally own and have been adding to right now during this sell-off. It's down 11.5% from its 52- week high and down 7 and a half% over the past month. This is one of the best big tech companies in the world and it's been a reliable compounder in the stock market. As you can see, their earnings per share have been marching up on a constant path and that growth has actually been accelerating in the recent years. Based on earnings per share over the trailing 12 months, the P ratio is just under 34. And they typically trade on a higher multiple due to how reliable the revenues are. Most of their revenue is subscription or on a recurring contract. And expectations are that Microsoft will continue growing earnings in the coming years. And based on all the fundamental analysis I've done, I see this is likely. Expectations are doubledigit EPS growth above 15% every single year. Analysts have that pretty high around 20%. So, what that means is on a forward-looking basis for next year based on today's stock price, it's a 29.7P ratio. As we go to earnings per share expectations in fiscal 2023, that would be a 13.3 ratio based on today's price. Microsoft's growing revenue per share at a 15% keer. Similar to Meta, they have been ramping up their capital expenditures. So, free cash flow is not growing at the same rate in recent years. 3year keer free cash flow is 3.49%. Although it seems like they are set to grow this year as in Q1 they delivered record free cash flow per share. Microsoft one of the best businesses in the world. They built up an incredible balance sheet. Shareholder equity now sits at $363 billion. They have $12 billion of cash and short-term investments. And despite investing tens of billions of dollars into AI data centers, they still had $26 billion of free cash flow left over in the latest quarter to build up their balance sheet, pay a growing dividend, and slightly repurchase shares. Microsoft's dividend grows 10% basically every single year. 5-year keer 10.2%. It's very sustainable based on both free cash flow and net income. We have a 33% free cash flow payout ratio and 23% EPS payout ratio. And historically, they've gotten pretty good return on investment for their capex. They've been in that 22 to 25% ROIC. Right now, their demand is off the charts and pretty much they're able to accelerate their revenue growth. Microsoft is growing their cash from operations. Trailing 12 months, they're at a record $147 billion. And they are at record levels of free cash flow despite the rising capex. In the latest quarter, they just spent $19.3 billion. And this is still ramping up. It's going to continue. And for all you people talking about the AI bubble, we're still just getting started. Capex ramping up to $69 billion over the trailing 12 months. That is going to go up to $80 billion probably for the forward-looking year. Microsoft's forward-looking P ratio, it isn't cheap, but it probably shouldn't be cheap since we pretty reliably know they're going to grow. So, a lot of time quality businesses with reliable growth, they deserve to trade at a more premium multiple. And this isn't a full stock analysis video for Microsoft stock. A lot of the thesis for the company has to do with the growth of Microsoft cloud. And here you can see a simple chart of how that cloud revenue has grown. That includes their Microsoft 365 bundle. So their more softwarebased revenue. And then Microsoft Azure revenue as well. And Microsoft Azure is the key growth business when we're analyzing the company. Maybe I'll do a full Microsoft stock review video soon. Consensus price target $643. That implies 34% upside from here. The lowest price target on Wall Street is $560, which is quite above the current stock price of $478. Next up, we have a tech company which is down a lot more than some of the other ones I shared. And that is Salesforce, ticker symbol CRM. They are down 38% from their 52- week high and down 14.4% over the past month. And if you want to invest in quality tech companies and you're more on the AI bubble side, then this could be an interesting stock for you. And the reason is they're not directly investing in AI data centers. So they are not spending that massive capex. Salesforce they're just printing record free cash flow. And I'm talking this business prints. But they are still involved in AI from the implementation of it throughout their business and providing new solutions to customers like Agent Force which is Salesforce's big initiative. As you can see they've had fantastic earnings per share growth over the past decade. Based on GAAP EPS over the trailing 12 months, they traded a 32P ratio, but it's an even lower multiple based on non-GAAP EPS. Analysts are expecting high earnings per share growth in the coming years this fiscal year based on adjusted earnings per share $11.38. That would give them a forward-looking 19.8 P ratio and they're expecting at least 10% earnings growth in the coming years. And this pretty much is in line with historic growth. So if you bought Salesforce stock today at the current valuation that would be based on a 2030P ratio of 11. So this is a very attractive valuation for a high growth tech company. If we look at some of the metrics for Salesforce historically at least this has one of the most attractive financial charts you'll ever see. Revenue per share is going at 10-year keer of 16.4%. And it is reliable rock solid growth pretty much every single quarter. If we look at gap net income, that is long-term growth as well, but it has been much more choppy along the way. I haven't done a deep dive on that. It's probably some accounting reason because they have been generating a lot of cash, perhaps investment write downs or some kind of depreciation or something. If we look at free cash flow per share for Salesforce stock, it's grown at a 10-year keg of 26.7%. You can see last fiscal year they generated record free cash flow per share $12.93. So based on today's stock price of $225, that's a 17.4 free cash flow ratio. They have a good balance sheet, negative net debt. They've started repurchasing shares, and the company also started paying a quarterly dividend, and they just had their first increase of 4%. It's very sustainable. This company generates a lot of money, cash from operations, $13.1 billion over the trailing 12 months. Free cash flow, $12.4 billion over the trailing 12 months. This company simply does not have the capex that these other big tech players do because they're not directly investing in these massive data center projects, which creates one less risk on that side of the AI bubble. They don't have to worry about not getting a return on investment. Salesforce has an entirely different risk of potential new competitors that can leverage AI technology to more cheaply build competitive products to Salesforce and potentially companies building their own internal tools so that they won't have to pay Salesforce for their large deals. While I think there may be some examples of that, I think long-term Salesforce will still be in a very competitive position and they have a massive product portfolio, a huge developer ecosystem and a lot of companies that are very deep in the Salesforce ecosystem and in all their products and simply the switching costs are far too high to transfer to relearn all these processes and transfer their data out of all of these different products. I think the far more likely outcome is that Salesforce actually innovates and creates even more products and services to add to their ecosystem. Things like Agent Force, which provide more value to their customers. So, with Salesforce stock selling off, I certainly think it looks like a good buy in today's market. And the final stock I'm going to be sharing, which is the one I've been buying the most of in this group, is Hess Midstream, ticker symbol HSM. This is a much smaller cap company. It's more of a value play. If you don't follow this channel, you've probably never heard of this stock, but I've been buying a ton of it in recent months, and I've continued adding to it even this week. They are down 25% from their all-time high and down 17.4% from September. This is a mid-stream oil and gas stock. It has slow reliable earnings per share growth. The company is a dividend growth machine, 5-year compound annual growth rate of 11.31%. And it trades at such a cheap valuation that the current dividend yield is 9.26%. and they raise that dividend payment every single quarter. As an example, the most recent dividend raise was 2.42%. The one prior was 3.83%. So, in terms of dividend stocks or value stocks, it's extremely rare you're going to find a company with this high of a yield and this reliable and consistent and that high of dividend growth. The company is currently trading at its highest dividend yield of the past 5 years. And that's while generating over a 158% total return in that time frame. Even after this recent sell-off, I don't have time to do a full stock review on this stock today cuz I could talk for 40 minutes just about this one. It's one that I've been focused on buying and building a position in. If you're interested to watch more, please go watch some of my prior videos. Things like my portfolio update from this month and the one prior. I also have a full HSM stock review video, and I'll probably do another updated HSM stock review video. I just wanted to include it in this list because it is a stock I am currently buying and it is very different from some of the other big tech stocks I shared. This is much more of a value play with slower but reliable growth. If you enjoyed the video, please leave a like, comment, and subscribe to the channel. And if you want to use the stock research tool I showed throughout, it's all available at dividendata.com. We currently have our Black Friday sale going on which lets you lock in 50% off annual membership. Now is the best time to join. If the tool helps you find just one buyer stock, then it way more than pays for itself. To get the sale, the link is in the description and pin comment of the video. And with that said, I'll see you in the next