My Top 2 Stocks to Buy on the Dip

While the overall market may look a bit ugly, it's also presenting some great opportunities to buy otherwise great stocks on the dip.

Take Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and MercadoLibre (NASDAQ: MELI), for example. These two companies are some of the most dominant in their respective industries, yet they are trading at historically low valuations. These stocks are down significantly from their all-time highs, and if investors can muster up the courage to buy in this market, the stocks will reward them over the next three to five years.

Alphabet is the parent company of Google, YouTube, Google Cloud, and Android. However, the business is levered to one industry in particular: advertising. Advertising budgets tend to get squeezed during difficult economic periods, which could cause Alphabet's revenue to fall. Investors have recently demonstrated concerns about a recession affecting Alphabet, driving the stock price down around 22.5% from its all-time high.

Continue reading

Source Fool.com