With the recent stock market volatility that investors have been seeing, there are plenty of great stocks trading below their usual valuations. Is now a good opportunity for investors to buy on the dip? In this segment of Backstage Pass, recorded on Nov. 22, Fool contributors Jason Hall, Rachel Warren, and Toby Bordelon name their favorite discounted stocks to buy right now.
10 stocks we like better than Etsy
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Etsy wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of November 10, 2021
Jason Hall: Rachel, Toby, if you guys, I want to put you on the spot here, is there a specific stock you can think of that you think looks like it's a really good buying opportunity right now.
While you think about it, I'm going to share one thing on the mindset side to contextualize a day like today. I had one, two, three, four, six stocks in my portfolio that fell 8% or more today. Six that fell 8% or more. Half of those stocks are up at least 93% above their 52-week highs. Even after falling 8% or more, they are still up 92.7%, or 93%, 117%, and 206%.
The other three are all still above their 52-week lows. None of them are at 52-week lows. I think the first lesson is to not anchor too much on how much they fell from yesterday but thinking about how much is the business worth today? What does the market value the business at today? Between now and the time that you'll reach your financial goal and end your ownership with that company, do you think that the market value of that company can grow?
Do you think the business is worth more 10 years from now then you will pay for that business to buy it today? Not so much anchoring on how much the stock fell. I think more broadly, that's a little helpful way to think about it. Who wants to go first with their quick stock that's on sale? Let's throw some ideas out there.
Rachel Warren: I'll go first real quick. I was actually thinking of a stock I currently own that I think it went down a little over 5% today and that would be Etsy (ETSY 1.10%). I love this company. I think it is a great stock to buy on any day of the week, a day like today when it's trading down a little bit. The company, I believe, still trades at about 83 times trailing earnings. It's not a cheap stock, so it retracting about 5%, that might be a good opportunity to take a look at it, but I think this is a company that provides tremendous value now.
I think it will be even more valuable and even more relevant over the next five to 10 years. It's continuing to grow within this unique space it's carved out for itself in the fast-growing e-commerce industry, had a really fantastic quarter that it just reported. I love this company and I'm really excited to see where it's going over the next five to 10 years. I think it's a great one to look at if you want to invest in a high-growth stock that's trading a little bit down.
Jason Hall: Toby, you got one? You're ready?
Toby Bordelon: Well, you know, Jason, Activision's on sale.
Rachel Warren: [laughs] It's true.
Toby Bordelon: [laughs] I'm not sure that has much to do with today. We don't want to touch that.
Jason Hall: No. Until they get their leadership situation squared away.
Toby Bordelon: Yeah. If you don't want to touch that, might I suggest Airbnb (ABNB 1.05%), which I think went down 3% today? [laughs].
Jason Hall: Oh, my stock.
Toby Bordelon: Did I just take your stock?
Jason Hall: That's incredible. That's conviction ladies and gentlemen.
Rachel Warren: You guys can read each other's minds.
Toby Bordelon: 7.5% down. I think when I bought shares after the IPO, but not at the peak. After it had could come down a little bit and I'm only about 2% on that purchase. It's come down substantially in the last few recent months or so here I think, one worth taking a look at. I don't think people are suddenly going to say this mini travel boom is over now.
They get a lot of room to run. I like what they are doing with the business. I like the steps they're to adjust their platform to focus more on flexibility, to give people what they want on both sides. Give it a shot. Take a look at it.
Jason Hall: I'm going to say one that is really interesting and it's down. This is one that's down about 12% from its all-time high, reached very recently. But I think it's really attractive right now is Unity Software (U 3.37%). Unity just made a big acquisition. They've acquired Weta Holdings. It's a company that developed all the technology for the Lord of the Rings movies and pretty much every major release that's had a lot of CG over the past 15 years, has used Weta's technologies.
You bolt that into Unity's existing fleet of software as a service and what's going on with virtual reality, there's so much to like. There really, really is. I love Unity. It's not cheap. This isn't a bargain stock. This is a wonderful business that I think 10 years from now, five years from now, it's going to be a business that's far more important and more profitable than it is right now.
