Buying a stock on the dip can be a great way to lock in a lower price for an investment, especially if the underlying business is still solid. It can increase the odds that you'll make a good profit from the stock. However, you might need to act fast -- declines may not last long if the sell-off isn't due to true company struggles.
While the S&P 500 rose by more than 2% last month, Teladoc Health (NYSE: TDOC) , Barrick Gold (NYSE: GOLD) , and Beyond Meat (NASDAQ: BYND) all crashed 16% or more. And despite those sharp declines, these businesses remain in great shape and their stocks could make for solid long-term investments.
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