3 stocks to buy on the dip

Following years of superior returns, the S&P/ASX 200 (INDEXASX: XJO) plunged just under 6% in September to record its worst month since May 2012, wiping out some investors’ 2014 gains in the process.

While many investors are now in panic mode; the smart ones are travelling against the herd and putting their capital to work. After all, the best time to buy shares is when they are trading at discounted prices!

With that in mind, here are three stocks that you, the smart investor, should consider buying right now…

  1. Shareholders of beverage manufacturer Coca-Cola Amatil Ltd (ASX: CCL) have had a rough trot in recent years as the stock has plummeted on the back of a heavy decline in earnings. While I believe it was a fantastic buy even when it was trading at $10 per share, the recent market-wide sell-off has the stock now trading at just $8.67. Although I am down on my initial investment (at $9.39), I am still very confident in the company’s long-term prospects.
  2. The recent full-year report from Nearmap Ltd (ASX: NEA) had investors jumping in the air. Not only did it record a maiden profit of $7.1 million and a strong increase in subscriber numbers, investors are also getting excited about the enormous growth potential of the company in the coming years – not only in Australia but also overseas. Despite this excitement, the stock has retreated by more than 13% since its peak, giving investors a prime opportunity to pick up an ultra-promising company at a much more attractive price.
  3. Global shopping centre giant Westfield Corp Ltd (ASX: WFD) has also retreated in price over the last month despite its exposure to the quickly recovering US and UK economies. Now trading at $7.43, Westfield Corp is a great option for investors wanting to benefit from a tumbling Aussie dollar and an appealing dividend yield (which will also grow as the AUD falls).

The BEST stock to buy right now

The investors who will win big are those that are willing to go against the herd, despite how downright scary that can be. In my opinion, the best stock you could buy right now is one that not only offers strong growth prospects, but also a fat, fully franked dividend. Although it recently announced its seventh consecutive year of growth, its shares have retreated in price to offer investors a fantastic opportunity to stock up. But you better be quick, because the real gains will be made by those who get in early.

Simply click here now to discover the name and code of this ultra-promising stock in our brand-new investment report, "The Motley Fool's Top Stock for 2014."

Motley Fool contributor Ryan Newman owns shares in Coca-Cola Amatil Ltd and Nearmap Ltd.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.