Market dips, especially those triggered by unexpected macroeconomic data, are often the perfect chance to scoop up quality stocks poised for significant gains, particularly in a secular bull market such as the one we are currently experiencing.
As the Fed plans to make its first rate cut in more than four year in its next meeting on September 18, now might be the perfect time to scoop up undervalued gems trading at a reasonable discount.
But how can you efficiently spot these potential bargains amid the myriad of conflicting data and opinions out there?
Fair Value Tool Offers a Simple, Yet Effective Solution
That's where InvestingPro’s Fair Value tool can guide you in picking out stocks at a steep discount.
By integrating up to 15 industry-recognized valuation models, it provides investors with a professional, yet straightforward target for any stock in the market.
InvestingPro's tool also lets you take a deeper dive in any of the individual metrics used to provide the final calculation, allowing you to assess and even exclude any of them for an instant recalculation of the price target.
Source: InvestingPro
By combining transparency with best-in-breed financial modeling, Fair Value has proven a game-changer for investors during both good and challenging times.
In fact, just to talk about the previous broad market downturns, here are a few examples of the fantastic results our premium users managed to notch:
Axis Bank (NS:AXBK)
- FV Potential: 42% (4/28/2023)
- Total Returns Since: 38%
Vedanta (NS:VDAN)
- FV Potential: 62% (7/23/2023)
- Total Returns Since: 53%
The Federal Bank (NS:FED)
- FV Potential: 45% (7/15/2023)
- Total Returns Since: 42%
Lloyds Metals
- FV Potential: 40% (8/21/2023)
- Total Returns Since: 40%
DCM Shriram (NS:DCMS)
- FV Potential: 45% (4/1/2023)
- Total Returns Since: 48%
Among thousands of other success cases.
Now, to better illustrate how Fair Value has been helping our premium users achieve market-beating results, let’s take a closer look at four recent dip-buys you could have easily spotted by just following our tool.
2 Great Picks During Market Dips
Just one year ago, Vedanta's stock was languishing at Rs 270-280 levels. This downturn in the stock remained till February this year. Many investors, frustrated by the prolonged decline, decided to exit their positions, unaware that the stock’s turnaround was just around the corner. A year ago, InvestingPro’s Fair Value tool identified a significant upside potential of 62% for the stock. From there, it wasn’t long before the recovery began. InvestingPro subscribers who trusted the signal saw impressive gains. Since the call, the stock has surged 53%.
Vedanta stock wasn't the only stock to stage a remarkable recovery. SBI (NS:SBI) also emerged as a standout Fair Value pick during the same period.
In March 2023, SBI was flagged for a potential 50% gain based on Fair Value's calculations, and it didn’t disappoint. SBI met its target and the stock is up by 52% since then.
This highlights the fact that Fair Value is not a market-timing tool, but, rather, an essential metric for investors looking to professionally evaluate a stock's potential through its fundamental data.
Like these examples, there are hundreds of other stocks trading at a significant discount right now, just waiting to be scooped up.
So whether you're looking for a massive 50%+ winner on the dip or just want to professionally evaluate if it's time to take profits in your positions, Fair Value will prove the ultimate game-changer.