5 Stocks to BUY NOW After Earnings Crash!

Added: 2026-05-13

[00:00:00]Hey, welcome back subscribers to my world of stocks. So, in honor of our current earnings season, I gathered up for you guys five different stocks that recently took some pretty big tumbles after reporting that I now consider to be very solid buys on the dip. So, you're not going to want to miss this one. And just a heads up, if you'd like me to find some bonus stocks going through other earnings dips in the future, then let me know by either leaving a comment or just hitting the like button and especially the hype button. If you swipe on the comments to hit that hype button, uh that lets me know that you'd like to see more videos just like this one in the future, too, and throughout earning season. But hey, with that said, we've got some really, really fantastic stocks to run through today. So, I can't wait to share these with you. Let's just go ahead and jump straight into the list. All right, what a better way to kick things off than with a very popular tech giant that really any of us would be more than happy to uh get a buying opportunity on.

[00:01:00]And that is the social media giant Meta, ticker symbol META, who fell over 9% immediately after reporting earnings, leaving this market darling now down over or about a I should say a quarter of its entire value from the top. Uh, but like we've seen many times in post earnings drops, well, I actually think that this is another classic case here of the market. More specifically, I'd say short-term traders really missing the forest for the trees. Because if you look at the actual numbers, Meta continues to be in phenomenal shape.

[00:01:35]Revenues, for example, climbed a giant 33% year-over-year up to more than 56 billion, which is also their highest growth rate in more than five years despite the much larger size that they are today. And their profits were even more impressive, doing over 26 billion of pure net income profit, which I believe is the highest amount that I've ever seen from Meta recording in a single quarter, I'd say, in their entire the company's entire history. And uh both figures, by the way, also beat analyst estimates easily, too. So, if that was all you heard, you would 1,000% expect that the stock actually skyrocketed on this news rather than tanking hard. But it all really had to do with the same spending boogeyman that's been really scaring investors from other tech giants, too, like Microsoft and more. Now, I don't say that to necessarily downplay those concerns. I I do actually think that it's a good thing that investors are paying greater attention to the enormous amount of money that these companies are pouring into AI, which in this particular case, you know, Meta did raise their capex guidance for the year by another $10 billion up to now as much as 145 billion in total. And of course, that's being driven primarily by higher component costs like memory, which of course have been skyrocketing in price, as well as other data center related expenses. But like I've said before with Amazon and Microsoft, these type of spending dips are some of my favorite to actually take advantage of as it's not a reflection of anything being fundamentally broken with the company.

[00:03:14]Rather, it's due to huge investments for future growth will ultimately benefit a long-term investor like myself. And in the case of Meta, well, it's even showing meaningful results already today, right now, like in using AI to make their ads more effective and keep people on Facebook and Instagram longer.

[00:03:33]In fact, ad impressions were up 19% in the quarter, while the average price per ad rose double digits, too. And then you fast forward into a few years from now and these investments could really help Meta unlock entirely new revenue streams that the market may not even be pricing in yet. For one, we're seeing a massive explosion in business AI where companies are already having over 10 million weekly conversations with customers on WhatsApp and Messenger. And as these tools move from being free test to essential agentic operators that can handle sales and support 24/7, OMA could be tapping into a new nonadvertising gold mine. There's also Zuck's vision vision for personal super intelligence where meta AI isn't just a chatbot, but it really evolves into an even smarter personal assistant for billions of people that is theoretically more capable than even humans. There's also growth opportunities in AI glasses, new, more powerful AI models being developed, and even premium compute tiers for power users, too, which carry a ton of high margin potential for their subscriptionbased revenues. So, when I see them spending 145 billion to really build the foundation for the next decade of the internet, perhaps uh with already the largest user base on the planet to help them monetize all of it. Well, I don't really see a cost center as much as I see a giant competitive mode in AI being built out in real time. Yet, when you look at the valuation because of the stock dip, Meta now trades around 30% cheaper than their own 5-year average.

[00:05:15]And even the sector median, too, on a PEG basis, which is kind of crazy. So, to me, that's a rare gift here being given from, I'd say, an outstretched market that's been breaking new record highs. All right, next up though, it's actually a brand new stock that I just now started buying myself. Um, which I don't believe I've disclosed yet on the channel. And, um, we even actually started adding it to our community portfolio, too, after having a big drop post earnings that is, uh, really dragging down this dividend beast. And that stock is Clorox, ticker symbol CLX, who fell double digits this week after reporting and is now actually sitting at decade lows after losing more than half of its entire value from the pandemic highs. But while the headlines did look a bit ugly for this one, uh I just think that the market is missing a bit of a deep value story here for this stock.

[00:06:15]Uh, first of all, they actually beat on the bottom line with adjusted EPS rising 13% year-over-year, which I think is a great sign. The issue, though, had almost entirely to do with their future outlook as Clorox slashed their fullear guidance and is now expecting sales to actually fall by 6%. With gross margins taking a big hit, too. However, much of it is really due to macro and transitory issues that I think should eventually pass. Now, for one, inflation, tariffs, and even surging oil prices are not only damaging their supply chain and raising costs, but they're also making it harder to compete with cheaper Chinese and even store brand alternatives as consumer wallets get tighter. And biggest of all, Clorox is taking a 90 hit from their ERP inventory normalization, which is basically a systems overhaul for the entire company that forced them to backstock products. resulting in artificial um kind of like an artificial sales difference that makes things look worse than they probably actually are.

[00:07:19]Again, that may sound like a lot of issues to deal with, but it's not exactly businesssp specific or anything that Clorox is doing wrong themselves.

[00:07:28]They're really just temporary hurdles that you kind of just have to work your way through over time. The ERP transition, by the way, is now complete and it sets the foundation for much better execution moving forward. And more importantly, Clorox just officially closed their acquisition of Gojo Industries, the makers of Purell. And while that too is temporarily affecting their results by adding the number one hand sanitizer brand in the world to what is already the arguably best portfolio of health and hygiene products out there, too, which is also their most profitable segment. Well, the synergies and the added profits long-term could be huge for them. And while the market is freaking out over short-term integration costs, they're ignoring the fact that this is a company with a giant moat on some of the most trusted brands on the planet from Clorox, Pinesoul, and Glad to BSE, FreshP, Hidden Valley, Brida, Kingsford, and many more. But here's the biggest reason of all for why I'm buying the dip. It's the giant dividend that now yields one of its highest levels ever, quickly approaching 6%, which is even higher than it was during the Great Recession, having now been grown for close to five decades in a row. Because of the recent crash, I get to pick up this once highly priced near dividend king for a valuation that is over 40% cheaper than their 5-year average and would actually be much lower if it weren't for the macro issues hurting margins. So, I just think it's a definitely uh maybe a sleeper play, but def, you know, definitely one to keep an eye on. Okay, with that said, stock number three. It's actually a much larger position of mine in my portfolio that I am ecstatic to actually be able to be buying more shares of it now on the dip. And that is the popular fintech SoFi, ticker symbol SOFI. We just fell by over 15% this past week and it's now lost over half of its entire value from the top. And yet, this might actually be my favorite of all the dips. Definitely up there. One of my favorites, I'd say, cuz their results were an absolute blowout for the company as SoFi set records across almost every single metric they report with sales up 41%, member growth up 35% to nearly 15 million, and pure net income profit more than doubling in size, too. I mean, if you saw those numbers in a vacuum, you'd think that the stock would be up 20% on the day, especially with how much it had fallen already going into the report.

[00:10:00]But instead, it crashed even more. And the reason again had to do with what the market considered to be underwhelming guidance. Essentially, analysts wanted SoFi to raise their fullear outlook once again. But CEO Anthony Notto decided to keep guidance unchanged, citing uncertainties with interest rates and the conflict in the Middle East for reasons to be cautious. On top of that, my personal opinion is that we're also seeing the lingering effects of all the short seller noise going into the the report from Muddy Waters, who I'm personally not a big fan of, and I always take what they have to say with a giant grain of salt, given that they profit greatly from causing a particular stock to fall that they chose to target.

[00:10:43]But here's why I'm buying the dip instead. Reason number one, uh like I said before, the company is on fire as they continue building a robust financial platform and ecosystem that people almost never leave once they choose to join. They added 2.7 billion in deposits just this quarter alone, bringing their total assets to uh over 40 billion. They continue to cross-ell more products over time to their growing user base, creating a very lucrative kind of snowball effect. And reason number two, when you look at the valuation, thanks to all the growth and the fall in stock price, also now trades for a PEG that is close to 30% cheaper than the sector despite that sector by the way, including some of the cheapest low growth bank valuations in the world.

[00:11:26]Yet, SoFi is actually a high growth fintech instead. So, while I acknowledge the current issues or concerns, I'm still very much a believer that this will be a long-term winner in my portfolio. Moving on to stock number four though, we are looking at a legendary tech giant here that's been really around for over a century but is currently getting punished by the market and that is IBM. ticker symbol IBM, who fell double digits recently on earnings, leaving it down around 30% from the top and only up around 50% in the past decade despite it recently rocketing higher on a ton of AI hype, including the future promise of quantum computing. But like SoFi, I just think that this was a similar cautious guidance trap that the market overreacted to as IBM actually crushed estimates on both the top and bottom line with free cash flow soaring by 13% and IBIDA rising even more by 17% with solid growth across almost every segment including the most important cloud categories like 10% growth in hybrid cloud software, 16% growth in data and a massive 25% growth in hybrid cloud infrastructure.

[00:12:39]But because management decided to merely maintain their fullear guidance instead of raising it, well, short-term traders ran for the e exits, which by the way, I know that I've been criticizing this a lot here, but if the stock was uh overvalued going into the report, then I would also expect them to grow at a higher rate or at least be raising their guidance. But that's not the case here with IBM. This is a dividend aristocrat that's trading close to 30% lower than the sector with about a 3% yield on three decades of consecutive growth. So simply maintaining your guidance is more than justified in my opinion, especially when you already have a very solid business that carries some pretty decent growth potential long-term too from AI and QC quantum computing. In the quarter, for example, their Z mainframe sales actually soared by over 50% despite investors, you know, fearing that new offerings from Anthropic would be killing off IBM's legacy mainframe business. But instead, we're seeing AI actually strengthen it as more companies need that large compute power to run their local AI models. And in QC, IBM IBM remains a global leader with over 85 quantum systems already deployed that have run over 3 trillion programs. And it isn't just science fiction anymore, but really they have a clear road map to build a fully error-free quantum system by 2029. And while it's not a major revenue driver yet, being the early mover for a market that could explode in the future is a great head start to bet on while the rest of their high cash flow business keeps the company stable regardless. So to me, uh that's something that is worth considering on this dip here. But I actually saved my absolute favorite stock in the entire list here for last. Um, and this is really a stock here that I've been buying the most aggressively this past probably this p Yeah, this past week.

[00:14:37]I've been buying it the most aggressively, especially post earnings here. And that stock is the water specialist XYLM, ticker symbol XYL, who I actually talked about recently in another video, so I'll just keep this short here for you guys. But after reporting earnings, Zyllem fell over 7%.

[00:14:54]And while the stock usually performs great long-term, it's actually been heavily suppressed more recently, even trading about flat uh for more than half a decade. But the reason I started buying so heavily myself is because Zyllem really combines the high stable demand and growth that you get from what is in my opinion the most important and vital commodity in the world, water.

[00:15:17]Doing everything from wastewater treatment and transport to helping cities provide clean, reliable water to their populations. But they also carry hidden potential in AI acting as a backbone to the entire sector through liquid cooling which is essential to keeping all those expensive chips and servers out there from melting. Well, Zyllem is the global leader providing the high efficiency pumps and closed loop recycling systems that move all the coolant through the AI racks which continues to drive new orders growth for them on top of their already very stable business. But the stock fell on earnings because of an ill-time drop in orders that was only caused by some of their larger capital projects being pushed to Q2. And yet, the company actually still beat expectations. They raised their fullear guidance. They expanded their IBIDA margin guidance. And they even saw explosive growth in their cash flows, which they're now using to buy back stock and increase the dividend, which may only yield about 1 and a half%, but it's near the highest levels it's ever been. And it's also been grown every year since they started paying it with also a tiny payout ratio that should easily allow them to continue growing it well into the future. Plus, the dip in price left their valuation about the same as a sector and a whopping nearly 40% cheaper than their own 5-year average, which is kind of crazy for such an incredibly strong business like this with products and services that I can only ever imagine being more heavily needed throughout the world for virtually all of existence. So, it's probably the easiest buy for me right now in my portfolio, and I'm scooping up as many shares as I can. But hey, there you have it, guys. five stocks to look closer into on the earnings dip. Let me know if you'd like me to find some more of these for you in a bonus video. And let me know what you think about each of these ones down below, too, that we just covered. But as always, I thank you guys so much for watching. I hope that you enjoyed the video. I hope you're all doing well, and I will catch you all in the next one. All right, take care, my friends. Bye-bye.