3 ASX 200 buy-the-dips you may have missed and the ones brokers recommend now

We canvas today's best ASX 200 buy-the-dip opportunities according to the experts.

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Key points

  • We profile 3 ASX 200 buy-the-dip opportunities available right now, according to the experts 
  • They are Lovisa, Nufarm, and Dicker Data shares 
  • A few may have already passed us by, namely James Hardie, Betashares Nasdaq 100 ETF, and Pilbara Minerals 

The S&P/ASX 200 Index (ASX: XJO) is up 3.9% so far in 2023, but as we all know, individual stocks do not necessarily move in line with the benchmark index.

Rising inflation and interest rates have wreaked havoc in our share market over the past year, not to mention the impact of the COVID-19 hangover and the war in Ukraine.

That's an awful lot for ASX 200 stocks to contend with, and as a result, some of them have fallen into one heck of a share price dip.

But that doesn't make them poor investments in the long term.

Buying the dip is a fun strategy to employ when your favourite ASX 200 shares are down.

It allows you to dollar-cost average your holdings, which means bringing down the average price paid for all your shares in a particular company, while upping the dividend yield along the way by default.

Fun, right?

So, let's look at a few ASX 200 buy-the-dip opportunities that the experts are encouraging us to consider right now, as well as a few that may have passed you by in 2023.

ASX 200 buy-the-dip opportunities today

Lovisa Holdings Ltd (ASX: LOV

The Lovisa share price is $18.74 at the time of writing, up 1% today but down 25% over the past month.

Bell Potter reckons this is a great buy-the-dip opportunity. It has a buy rating and a $30.50 price target on this ASX 200 retail share.

This suggests a potential upside of 63% for investors from current levels.

Bell Potter said:

We also view LOV as a key pick in our Retail sector coverage with its ability to execute on the large global roll-out opportunity as a strong player in the fashion jewellery market while remaining relatively better immune to consumer spend pressures given the accessibility of the product from a price point perspective, once comps normalise.

Dicker Data Ltd (ASX: DDR)

Dicker Data shares are trading at $8.12 at the time of writing on Friday, up 0.6% for the day and down 27% over the past six months.

As my colleague James reports, this ASX 200 technology hardware and software distributor has been growing at a consistently solid rate for a decade through organic growth and acquisitions.

Now, the digital transformation megatrend is providing a mighty nice tailwind for further growth.

Morgan Stanley has an outperform rating on Dicker Data shares, with a 12-month price target of $10. That implies a potential upside of 23%.

Nufarm Ltd (ASX: NUF)

Shares in the ASX 200 Australian agricultural chemical and seed technology company, Nufarm are down 16% over the past six months to $5.12 today.

Bell Potter is also optimistic on this one.

It's got a buy rating on the agriculture share and reckons it could go more than 40% higher within a year. Its official share price target is $7.35.

The broker says:

FY23e is a year of earnings consolidation for NUF, with a downdraft in APAC mitigated by gains elsewhere in the global portfolio. Beyond FY23e we can see a pathway to NUF reaching its FY26e revenue targets
through the omega3 and carinata opportunities and continued over indexing in ag-chem.

As the beyond- yield platform takes over as the revenue and earnings driver we see the scope for a re-rating in the multiple of NUF above that of ag-chem peers.

The dips you may have missed in 2023 so far

James Hardie Industries plc (ASX: JHX)

In late 2022, it seemed like every broker under the sun was recommending James Hardie shares.

As my Fool colleague Tony reported last November, 13 out of 14 analysts on CMC Markets were rating the ASX 200 building materials share a buy, with 11 giving it a strong buy rating.

In February, Citi analyst Samuel Seow said the company's disappointing Q3 update was likely the last earnings downgrade, commenting: "Ironically, we see [the Q3] result as a buying event, and the total shareholder return outlook should be positive from here."

Yeah, it's been positive. As in, a 55%-plus share price rise type of positive.

The James Hardie share price has leapt from $26.12 at the close on 3 January to $40.48 at the time of writing on Friday.

Betashares Nasdaq 100 ETF (ASX: NDQ)

With hindsight, maybe it could be said that this one was an obvious buy (damn it!) at the start of 2023.

After many long months of holding our tech shares through gritted teeth in 2022, both Australian and United States IT shares finally began a comeback in earnest in January.

Case in point: This ASX 200 exchange-traded fund (ETF) tracks 100 of the biggest tech shares on the NASDAQ. On 3 January, the BetaShares Nasdaq 100 ETF closed at $24.82. Today, it's 37% higher at $34.07.

The S&P/ASX All Technology Index (ASX: XTX) is up 22% while the ASX 200 is up just 3.9% in 2023.

The NASDAQ Composite (INDEXNASDAQ: .IXIC) is up 33% and officially entered a new bull run in May.

Pilbara Minerals Ltd (ASX: PLS)

The dip in the Pilbara Minerals share price, down to the $3.50 range in March, is looking rather appealing in hindsight.

Of course, the ASX 200 lithium share was on its way down from what many brokers described as a stretched valuation of $5.66 in November 2022, as investors frothed over Pilbara's maiden profit.

So, it's understandable that some investors may have missed this dip. Arguably, it was the first time Pilbara shares had gone through a serious correction, so investors may have wanted to see where the support line was. That point appears to be about $3.50 in March.

Pilbara Minerals shares have since risen 38% to $4.83 today. They're up 3.5% on Friday.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in James Hardie Industries Plc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, Dicker Data, and Lovisa. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and Dicker Data. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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