The market is a greedy machine with many objectives, one of which is to transfer money from impatient and short-sighted investors into the hands of the savvy and patient. In today’s uncertainty and volatility, born out of President Trump’s recent trade tariff rollouts, there are new opportunities for savvy and patient investors to lock in great deals.
Knowing that tariff fears will inevitably subside and that discounts can be had pretty much all over the marketplace today, investors can start to look into some of the companies and brands that are likely to stick around and not go away any time soon. This creates asymmetrical opportunities that clearly favor any potential buying decisions in these names today with a reasonably extended investment time horizon.
That being said, the names that very clearly stand out in fitting this profile are stocks like Starbucks (NASDAQ:) Co., which represents the retail sector. Then there is the chipmaking equipment giant ASML Holding (AS:), and last but not least, a well-known name providing the discount of the cycle through shares of PepsiCo (NASDAQ:) Inc. Here is why each of them can make for great dip buys today.
1. Starbucks: Consumer Slowdown Creates Entry Point
After the company reported slowing sales for its most recent quarterly earnings, shares of Starbucks reacted by trading down by as much as 4.5% in a single week. However, this move did not bring on the discount itself, but rather the zoomed-out 25.6% decline over the past quarter.
The reported revenue slowdown cannot be blamed on just Starbucks, as other companies in the same sector have reported similar trends. This means this is a consumer-wide issue rather than a product or name-specific one in Starbucks’s case today. With the stock now trading at 70% of its 52-week highs, the scale has tipped in favor of the bulls.
Understanding how fantastic this setup is, investors can now look at the ways Wall Street analysts feel about this stock right now. With a $98.1 per share target as the consensus, the common view is that Starbucks could rally by as much as 20% from where it trades today, but that’s not really a true reflection of future upside.
Analysts aren’t likely to give their true opinion on the stock until sales and other industry fundamentals return to the norm and the stock manages to break out of its bearish funk. However, by the time these true outlooks are rolled out by analysts, it will likely be too late to act.
2. The Irreplaceable ASML
Most investors are now focused on some of the more popular names in the semiconductor and chipmaking industry, without realizing that they wouldn’t have their success without the presence of ASML today, given that this name controls a large share of the supply and logistics chain.
Without ASML’s machinery, leading names like NVIDIA (NASDAQ:) would not be able to manufacture their market-leading chips, and that by itself makes ASML an indispensable name to keep around in a portfolio, especially today. This stock has now fallen to a dismal 57% of its 52-week high, so investors have yet another tremendous risk-to-reward setup here.
Contrary to Starbucks, Wall Street analysts have decided to make a bold call about the future of this company, particularly those from J.P. Morgan Chase. As of January 2025, these analysts reiterated their Overweight ratings on ASML while also placing a $1,100 valuation on it, and the fact that this view hasn’t changed says it all.
Still calling for up to 65% upside from today’s prices despite all of the tariff uncertainty and volatility is worth more than a thousand words coming from anywhere else in the market; now investors know why this stock is here to stay.
3. Capital Warms Up to Pepsi Stock
As of late April 2025, institutional allocators from Flossback Von Storch decided to boost their holdings in Pepsi stock by as much as 9.4%, bringing their net position to a high of $838.7 million today and giving investors a sign of confidence despite the stock being deep in bearish territory.
Falling to a low of 73% of its 52-week high is not common for a stock that is as defensive as Pepsi, a theme that is amplified by looking into the current forward price-to-earnings (P/E) valuations, which have also fallen to 16.6x to be well below the lows made during the peak months of the COVID-19 pandemic.
The world economy and the consumer look much better today than they did during this global pandemic, so there is no reason to be as panicked about a name like Pepsi. These institutional investors might already be betting on it as the window of opportunity closes for everyone else involved.
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