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3 Portfolio Worthy Stocks to Buy on the Dip: CLS, GE, JPM

Among the Zacks Rank #1 (Strong Buy) list, several significant companies are starting to stand out as their stocks look like buy-the-dip targets.

Amid recent market volatility, these highly ranked and pivotal stocks may be worthy of consideration in regards to building long-term positions. Providing exposure and diversification to various sectors, they also appear to be poised to outperform the broader market, especially when volatility subsides.

Celestica - CLS

We’ll start in the tech sector with Celestica (CLS - Free Report) , a provider of critical assembly components and manufacturing support to many of the world’s leading original equipment manufacturers.

Celestica’s essentiality and expansion have led to astronomic gains for CLS shares over the last three years. Trading 22% from its 52-week high of $144 which it hit at the beginning of February, the recent pullback in Celestica’s stock could be a healthy correction with high double-digit EPS growth in the forecast for fiscal 2025 and FY26. This comes as total sales are expected to rise 11% this year and are projected to increase another 18% in FY26 to $12.72 billion.

Indicative of the high demand for Celestica’s manufacturing technology and service solutions, it's noteworthy that its Zacks Electronics-Manufacturing Services Industry is currently in the top 6% of almost 250 Zacks industries.

Zacks Investment Research
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GE Aerospace - GE

Revamping its focus on aviation technologies, GE Aerospace (GE - Free Report)  has been on the rise as a producer of commercial and defense airline engines. Formally known as General Electric, GE has become a gem in the transportation sector and is still a core holding of many hedge funds with over 70% of its shares controlled by institutional investors, which also makes its stock less prone to volatility from panic selling.

To that point, GE is not far from its 52-week high of $212 a share which it hit last Tuesday. Retail investors have surely been looking for a dip and better buying opportunity, especially with the company pledging to raise its dividend by 30% thanks to its strong cash flow. While GE has increased its spending to boost aviation production and get back to a clearer path of growth, the company expects to generate $6.3-$6.8 billion in free cash flow this year.

Exemplifying this, GE’s Cash Flow per share (CF/PS) ratio is at 7.1X and pleasantly above its Zacks Transportation-Airline Industry average of 5.2X and the S&P 500’s 5.9X. The higher CF/PS calculation is favorable as it attests to the notion that GE can generate significant cash to support dividends, growth investments, and debt repayment.

Zacks Investment Research
Image Source: Zacks Investment Research

  

 

JPMorgan - JPM

Lastly, if macroeconomic fears and tariff concerns become overblown, investors may want to swoop in and buy shares of the largest U.S. bank, JPMorgan Chase (JPM - Free Report) . Putting stock fundamentals aside, JPMorgan's CEO Jamie Dimon is known for his wit and tendency to be ahead of the curve as it relates to economic uncertainties and how to rectify the matter.

JPM has fallen 8% from its 52-week peak of $280 which it hit last Wednesday. Magnifying its robust top and bottom lines is that JPM trades at a reasonable 14.2X forward earnings multiple and offers a modest 1.94% annual dividend which makes keeping positions in the portfolio more appealing.  

Similar to GE, it's noteworthy that JPM has a payout ratio under 30%, and should have plenty of leverage to boost its dividend in the future.

Zacks Investment Research
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Bottom Line

Pulling back from their highs, these top-rated stocks are viable options for long-term positions in the portfolio. Furthermore, their strong buy rating correlates with a trend of positive earnings estimate revisions and suggests they should outperform the broader market. 


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JPMorgan Chase & Co. (JPM) - free report >>

GE Aerospace (GE) - free report >>

Celestica, Inc. (CLS) - free report >>

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