🚨This Dip Won't Last (Buying These 6 Stocks Now)

Buying a great company is great, especially at a very solid price, but what if those companies were on sale? That's the time to really be buying in, especially if you've done your homework. I've got six great companies for you. Three of them are down more than 45% from their all-time high. Two of those have basically been cut in half, and five of the six are flagged as greatly undervalued right now by an independent research firm. Let me show you the data. My name's Nolan Govea. My students call me Professor G, and I made this channel to make investing simplified. Remember that all investing carries risk, so do your own research. This is not financial advice, and I'm not a financial advisor. A couple of weeks ago was the craziest week in 2026. That week the Fed held interest rate steady, but three members voted for a hike. The Dow dropped 1,153 points, its worst day of the year, and the Nasdaq closed 10% below its June peak. That's correction territory. The second time this year. Then the whole thing flipped. Microsoft jumped 15% on monster earnings. The Nasdaq had its best day since June, and Amazon reported Thursday night and jumped double-digits overnight. Here's basically what happened. The market spent 2026 scared of one thing, all this massive AI spending. And that week it finally started separating the companies that can show real results from that spending from the ones that are just spending. The companies with real results got rewarded. The ones that just spend got punished. And this is the most important part. The S&P 500's only about 2% off its record. The damage is hiding underneath. The biggest names in the market, the Magnificent Seven, are actually down as a group this year, while the other 493 stocks are up about 13%. So the discounts are sitting exactly where nobody expects them, at the top of the market. And in a handful of iconic names that the crowd has left for dead. One of my favorite quotes is the stock market is the only market where things go on sale and all the customers run out of the store. The best opportunities often happen when fear is at its highest. And that's exactly what this video is all about. So today's video is packed full of six stocks that are completely undervalued. But before I jump into those, I want to show you my system so that you can go and find great undervalued stocks yourself. And the tool I use is called Investing Pro from investing.com and I check it every time before I deploy real capital. Specifically, I use two things. First is Pro Picks AI. It's an AI model trained on over 50 financial signals and its strategies have historically outperformed the S&P 500. I use it to see what the AI is flagging as strong right now. Then once it surfaces something interesting, I zoom in to validate it. Thank you to investing.com for sponsoring this video. So let me show you. So here's the strategy relevant to today's market. You can see it's outperformed the S&P 500 significantly. And it's currently flagging Applied Materials AMAT as one of the top picks. So I click in and see so much analysis that used to take me hours to compile on my own. Hedge funds spend a lot of money to get analysis like this. Investing Pro gives us retail investors the exact same analysis at a fraction of the cost. If you want to run the same fair value check on stocks that you're looking at, investing.com is running their August sale up to 55% off the best price of the year. But if you use my link below, you get an extra 15% on top of that. Meaning the lowest price available in the market in the entire year. Check out the link in my video description below. Okay, let's start with the two safest names on the list and honestly the highest on my list. These are two that I actually invest in and I love. They're two of the most profitable stocks in the entire market and they've recently shot up in price of the last week or two, but they're still very undervalued in my mind. The first one is Amazon. And now when I was building out the idea for this video, Amazon was way, way undervalued. Then they had their earnings report and recently it shot up, but I still believe they're undervalued. Going into its latest earnings report, Amazon was about 15% below its May all-time high of roughly $278. Why? Spending fear. Back in February, Amazon said it would spend about $200 billion on capital projects this year and the stock dropped hard. Ever since the market's been asking one question, is all that spending actually going to pay off? Then at its earnings report, Amazon answered. Revenue came in at $200.6 billion for the quarter, up 20%. AWS, the cloud business, grew 36.7%. It's fastest growth in 18 quarters. Operating income jumped 43% to $27.5 billion. Advertising grew 26% and the CEO said their AI business and their chip business have each passed a $25 billion run rate, both growing at triple-digit rates. So the spending is meeting real demand, not hope. The stock jumped more than 13% the next morning. And even after that jump, the data still says it's cheap. Going into the report, Amazon traded around 27 times forward earnings, below its own historical average and one of its cheapest valuations in years. And Morningstar actually raised its fair value on the results to $300 with a four-star rating and a wide moat. The market just proved how fast this discount can close. For me, this is exactly the type of stock that I like in my portfolio. Just a world-class company, temporary fear, and then the fear just got answered. Now let's jump on to a different company and out of the two, I actually like this second one even more, and you know this because I've talked about it on this channel many times, and it's one that I've dollar cost averaged and bought each and every month for the last 2 years or so. I believe the market still has this one wrong and it's still undervalued. This one's Alphabet, Google. Around $362 as I record this, down about 14% from its May all-time high near $409. So, Alphabet's on a little bit of a sale, but I actually believe that it's worth much more than $409. So, why are they on sale right now? On July 22nd, it reported a monster quarter. Revenue up 24% to $119.8 billion, and the stock still fell 7% the next day. Because Alphabet also raised its spending plan to as much as $205 billion this year, more than double what it spent last year. And for the first time ever, it burned more cash than it brought in for a quarter. Wall Street looked at that bill and flinched. But, look at what the spending is buying. Google Cloud grew 82% last quarter with a backlog of $514 billion in signed business. That's half a trillion dollars of demand they haven't even delivered yet. The Gemini app now has 950 million monthly users. Search grew 17%. I think the market is pricing in Alphabet as of what they are right now and not what they actually could be and what they're building behind the scenes. Waymo, their self-driving unit, raised money in February at a $126 billion valuation, and it's still basically a rounding error in the stock. And that's before you even count YouTube, quantum computing, and the AI models themselves. Morningstar rates Alphabet four stars, wide moat with a fair value of $433 against a price around 360 or so. The average analyst target across 64 analysts is about $428 today. That's a lot of gap between price and value. Now, for this list, I definitely wanted to make sure and add in things that were not technology. So, the next two names on this list don't have to do with AI or purely technology, because this isn't just an AI issue. Disney, around $96 a share as I record this, its all-time high back in 2021 was just over $200. So, Disney, the most famous entertainment brand on the planet, is down about 52% from its peak. Why is it so cheap? Because the fear is real. Earlier this fiscal year, profit in the entertainment division fell 35% and sports fell 23% in a single quarter. The company's carrying about $41 billion in net debt, and it's been cutting jobs across the business. And here's the kicker, the most recent quarter actually stabilized. Total segment profit was up 4% and the stock still never got credit for it. The market decided the magic is gone and stopped looking. But here's what the fear is missing. Disney trades at about 13 times forward earnings. That's cheap for a company that owns the most valuable character library in history, plus a theme park business that still prints money. The analyst consensus on this one is a strong buy with an average target of about $127, roughly 32% above today's price. And Morningstar rates Disney a wide moat business with a fair value of $125 and has said flat out that it remains undervalued. Now, as I'm filming this, Disney does report earnings this week. So, by the time this video comes out, they will have reported, so some things will have changed, but overall, I still I'm going to see this as quite undervalued. Next on this list is Hershey's. Around $176 as I record this, down about 36% from its 2023 all-time high near $277. The story's simple on this one. Cocoa Cocoa went to record levels and crushed Hershey's margins. That's it. That's the whole bear case. The market took one of the most dominant consumer brands in America and priced it like chocolate's going out of style. Hershey reported earnings of $1.90 per share against an expectation of $1.42. Beat on revenue, too. Raised its full-year earnings guidance and the stock still fell about 4% that day. When a company beats, raises, and drops anyway, that tells you the fear is driving the price, not the numbers. And now, listen to this. Management said that cocoa costs are finally about to be driving downward in 2027. If that plays out, the exact thing that crushed the stock in the first place is going to be reversed. You collect a 3.3% dividend yield while you wait, and the average analyst target sits about 16% above today's price. So, both of those last two stocks are down huge overall. The market decided that that bad news that was temporary is actually something that's going to be permanent for the company. History says that great brands with real moats don't stay down forever. Now, the next stock on this list is one that you're very familiar with because it got huge popularity this year, and it's actually one of the biggest stocks in a lot of the indexes that you probably are invested in, like the S&P 500 or the Nasdaq 100 or any of those growth ETFs, for sure. This one went up like crazy within the last year, but most recently is down. Micron, MU, in the mid 800s as I record this. Down about a third from its June all-time high of $1,255. And what's crazy is Micron just reported one of the best quarters in semiconductor history. Revenue of $41.5 billion, up 346% year over year, earnings of $25.11 a share, an 85% gross margin, and they guided next quarter even higher to around $50 billion. Their high bandwidth memory, the memory that AI data centers cannot run without, is sold out through the end of 2027. So, why the discount? Why is it dropping? The stock went from $990 on July 23rd to $739 by Wednesday's close, down more than 25% in four trading days. One word, China. The Chinese memory maker called CXMT went public on Monday, roughly 5x on its debut, and the market panicked that cheap Chinese chips are coming for Micron's business. Add the old memory cycle fear, record prices eventually invite over supply, and the crowd hits sale. But, listen to what happened next. Amazon raised its spending plan to about $220 billion and said higher memory costs are pushing that number up. Apple CEO called memory pricing a 100-year flood the same night. When the biggest companies on Earth are complaining that your product costs too much, that's called pricing power. The stock bounced as much as 26% off Wednesday's low at the morning's high. And even after giving some of that back, it's still up double-digits from that bottom. The stock trades around six times next year's expected earnings, and the average analyst target across 45 analysts is around $1,500 per share. Be careful, though, memory is a cyclical business. A cheap multiple at record earnings is exactly what a cycle top can look like, and the China threat is real even if their tech is two to three generations behind today. High risk, high reward, size it accordingly in your portfolio. Now, speaking of higher risk, possible higher reward, onto this last one. And then after I show you that, I'll show you the most important thing that you need to understand for this video, exactly how to invest in these types of companies, and what type of percentage it goes in your portfolio. Now, this one's actually running at the highest discount of any of the stocks on this video, but also it has the highest risk. And don't glaze over that. Risk is important for you to understand. Make sure you look at your portfolio. Make sure you understand how much risk you're even capable of holding. But, I've been buying this stock for years, and I bought more during this most recent dip. This one is SoFi. It's around $17 as of I record, down about 50% from its all-time high. And what's wild about this one is the business has never been better. SoFi reported record revenue of $1.2 billion for the quarter, up 43% year-over-year. 15.8 million members, up 35%. Loan volume jumped 69%. Deposits are sitting at $45.5 billion, and they posted a real profit, $156.6 million of net income. This is not some pre-profit story stock anymore. So, why in the world is it cut in half? Expectations. This stock was priced for perfection last November, and 2026 has been one long reset. Even after all those record numbers, the stock dropped around 9% to a 52-week low, because SoFi raised its revenue outlook, but did not raise its profit outlook. Then it bounced back 8% that next day. That whipsaw tells you exactly what you're buying, a high-growth business the market cannot make its mind up about. SoFi is about 22 times forward earnings for a company guiding to 30% plus growth. Morningstar actually raised its fair value to 1750 the day of that earnings report, and calls the stock modestly undervalued. The average analyst target is about $19.87. Now, the risk part, and I definitely mean it. Most analysts are calling this more of a hold than a buy. Its tech platform did shrink about 23% last quarter after losing a huge client in 2025. Most of its lending is personal loans, which gets hit first if the consumer weakens, and it moves at more than twice the market's volatility. If you play this one, it belongs in the small, high-risk sleeve of your portfolio. Money that you can be afford to be wrong on. So, now how would you actually use all of this? Let me show you the framework for how I would invest in these six types of stocks. You want to understand how to buy the dip without getting burned. Just because a stock is down doesn't necessarily mean that you go buy. You don't just buy everything that's down, but we do want to add if it is a dip, meaning that it is going to be coming back up. So, think in tiers, kind of like the way that I just showed them to you. The base of the pyramid is the quality compounders, Amazon and Google. Massively profitable, flagged undervalued by independent research, on sale because of a spending scare that the earnings are already answering. This is where most of a dip buyer's money should go. The middle's the quality names outside of tech, like Disney and Hershey. Iconic brands, real problems, but priced as if those problems are permanent. Higher conviction is required, and if you're getting paid dividends, even better. Next would be a solid company with solid promise, but that has had some crazy volatility recently and needs to work some things out. There's real demand for Micron, but the risk is still there for investors that this stock could fall further before gaining. And then the tip of the pyramid, the smallest slice is the high-risk name, SoFi. Huge growth, huge volatility, a market that can't decide what it's worth. I'd keep that one a little bit smaller compared to the other ones. And now I've said this before, but let me give you my three rules for buying a dip. Rule number one, a lower price is not the same as a discount. A discount means the business is still great, and the fear's temporary. If the business itself is broken, that's not a sale, that's a trap. Rule number two, buy in pieces, not all at once. Nobody catches the exact bottom. Look at Amazon. It was 15% off its high going into that earnings report, and it closed most of that gap overnight. Dollar cost average into the names you believe in, so you're not betting everything on one day. Rule three, size by risk. The riskier the name, the smaller the position. That's how you get the upside without betting the farm. To see exactly what to do if we do see a crash or a major correction in the next year or so, I made this video right here to show you exactly your only options if we do see a crash and how to prepare right now. Or watch this one that I just made earlier this week, and remember to keep investing simplified.