5 Stocks to Buy the Dip, According to AI

Core Insights - The article discusses the performance of five counter-cyclical stocks that have remained stable during market selloffs, contrasting them with more cyclical investments that carry higher risks [1][3] - TradeSmith's AI system, An-E, is highlighted as a tool for identifying attractive entry points for long-term investments, utilizing extensive data analysis [4][5] Group 1: Stock Performance - The five counter-cyclical stocks have traded flat on average, while Nvidia Corp. (NVDA) saw a significant drop of 10% in one day [1] - Informatica Inc. (INFA) has increased by 5%, Seagate Technology Holdings plc (STX) by 10%, and Meta Platforms Inc. (META) by 20% [8][24] - Salesforce Inc. (CRM) has lost 20% of its value this year but has historically seen an average increase of 33% over the following three months when trading at similar forward earnings multiples [9][10] Group 2: Company Analysis - Akamai Technologies Inc. (AKAM) is transitioning from a content distribution network to a cybersecurity firm, trading at a low 12X forward earnings with projected 25% growth in EBITDA [12][13] - Advanced Micro Devices Inc. (AMD) is noted for its strong management and competitive products, despite facing challenges from U.S.-China trade tensions, leading to a significant selloff [15][17] - Moderna Inc. (MRNA) and Celanese Corp. (CE) have seen substantial declines of 40% and 42% respectively, but both are considered to have significant upside potential in the medium to long term [18][20] Group 3: AI and Investment Strategies - TradeSmith's An-E system uses over 1.3 quadrillion data points to provide investment recommendations, focusing on short-term market movements [4][21] - The system has a historical hit rate of 60% to 70% on its predictions, demonstrating its effectiveness in guiding investment decisions [21][22] - The AI system aims to help investors time their market entries better, particularly in volatile conditions [22]