The current chaos that continues to roil the markets is causing a lot of headaches and significant losses as major indices fall. It is also creating prime investment opportunities to profit from as prices fall artificially low in some cases. That’s what we’re going to talk about today: stocks to buy on dips amid the current market chaos.

Buying on dips, like almost anything else, has its own advantages and disadvantages. The downside is that it is often difficult to time the market correctly. What looks like an attractive entry point can often be a false bottom. However, many investors also realize that the advantages outweigh the potential disadvantages.

Rallies bring returns, and those returns can often be substantial, especially in markets like the one we’re currently experiencing. Buying on dips is also a smart strategy for those who participate in dollar-cost averaging. Regular purchases, regardless of price, reduce the overall cost of ownership. So it’s clear that owners of the stocks discussed below have very good reasons to buy on dips.

Pfizer (PFE)

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Pfizer (NYSE:PFE) shares have fallen more than 19% over the past year and 1.5% since the beginning of the year.

This truth contradicts the recovery the stock has experienced over the course of the year. PFE shares had risen above $31 by the end of July and had gained more than 8% for the year to that point. The recovery was a clear indication that the pharmaceutical giant’s turnaround was well underway.

However, like so many others, it has been dragged back down recently. Don’t let that deter you from the opportunity. Pfizer is making a post-pandemic turnaround, but it just gave back a few dollars of its recent gains. That’s a blessing in disguise.

Second-quarter sales were $260 million higher than Wall Street expected, giving Pfizer the confidence to raise its full-year sales forecast to a range of $59.5 billion to $62.5 billion.

Pfizer has a deep pipeline of drug candidates, recent acquisitions, and reliable dividends, all of which speak to the company’s value, which is above its current share price.

First Solar (FSLR)

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First Solar (NASDAQ:FSLR) clearly represents an opportunity for investors. The stock has risen by more than 28% through 2024. However, it has also collapsed since mid-June. Even after a 28% rise this year, consensus expects it to have another 30% to go. In the best case scenario, it is even much higher.

However, there are fundamental reasons why First Solar is a worthwhile investment right now. One of them is the company’s forward P/E ratio, which is lower than its current P/E ratio. This means that analysts expect earnings to rise, which in turn should lead to rising share prices.

Another reason is that First Solar’s revenue is expected to double between 2022 and 2025. The company reported revenue of $2.62 billion in 2022. That number is expected to rise to $5.77 billion by 2025. At the same time, earnings per share are expected to rise from -41 cents to $21.66.

Broadcom (AVGO)

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Take the opportunity to take away Broadcom (NASDAQ:AVGO) stock after the recent downturn. The company has become one of the leading AI companies for a reason. It is providing strong revenue growth, earnings growth, and high dividends for the technology world. All of these factors suggest that it will remain one of the better AI investments overall.

Broadcom designs, develops and manufactures chips and also sells semiconductor software. The company is currently in hypergrowth mode. A look at the latest earnings report confirms this. Sales increased by 43% in the second quarter.

Most of that growth was due to the VMware acquisition, but even without that purchase, Broadcom grew 12%. Earnings could rise 50% this year. The VMware acquisition has fundamentally strengthened an already strong company. Earnings are expected to rise more than 25% in 2025. That means the sharp increase in earnings in 2024 is not just a blip due to the acquisition. Overall, many signs point to AVGO being a very good stock to buy on a dip.

At the time of publication, Alex Sirois had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.