These 3 Beaten-Down Stocks Could Be Your Best Buying Opportunity This Quarter

The tech sell-off that began in late October continued through the first half of November. While the selling was initially isolated to a handful of the Magnificent Seven stocks and others leveraged to AI—including Palantir Technologies (NASDAQ: PLTR), shares of which are down nearly 13% since—the damage has bled into numerous other sectors. 

Specifically, as tech compiled a loss of 5.25% during that period, communication services dropped 4.27%, and consumer discretionary stocks fell by 3.45%. But pullbacks are healthy functions in market cycles, especially during bull markets. Investors often act impulsively during earnings season, but what matters is guidance. 

For those looking for buy-the-dip opportunities amid the current pullback, three companies with strong fundamentals and bright futures are currently on sale: Meta Platforms (NASDAQ: META), T-Mobile (NASDAQ: TMUS), and Home Depot (NYSE: HD).   

Meta’s AI Spending Is Surging

When the Magnificent Seven member reported Q3 earnings on Oct. 29, it beat on the top and bottom lines.

Earnings per share (EPS) of $7.25 exceeded the $6.74 analyst consensus, and revenue of $51.24 billion exceeded expectations of $49.34 billion. Revenue showed a 26.2% year-over-year (YOY) increase. 

But earnings are rear-facing, and the market reacted negatively to the company’s CapEx plans for AI infrastructure spending, including $600 billion over the next three years. This year alone, Meta’s slated to shell out between $70 and $72 billion.

The company also reported a one-time $15.9 billion tax hit, which accelerated the selling. Now, shares of META are on the verge of a correction, down nearly 19% since reporting on Oct. 29. 

But Meta’s planning to "aggressively front-load [AI] building capacity,” according to CEO Mark Zuckerberg, who views the CapEx increases as long-term investments supported by strong revenue growth in Meta’s core ad business. 

The company’s Q4 guidance includes revenue between $56 billion and $59 billion, primarily driven by advertising enhanced by AI targeting and user engagement improvements across its family of apps, including Facebook, Instagram, WhatsApp, Threads, and others. 

Meta is the only Magnificent Seven stock that hasn’t undergone a stock split. But while its share price $609.46 may seem elevated, Wall Street’s bullish on the stock. Of 48 analysts covering the META, 41 assign it a Buy, seven assign it a Hold, and none assign it a Sell. Meanwhile, the analysts' average 12-month price target of $827.60 represents nearly 36% potential upside. 's

The stock is trading at a price-to-earnings (P/E) ratio of 26.92—the cheapest among the Magnificent Seven stocks. For context, NVIDIA (NASDAQ: NVDA) and Tesla (NASDAQ: TSLA) are at 54.18 and 269.57, respectively.

Home Depot Pays Patient Investors

Home Depot hasn’t reported Q3 earnings yet, but when it reported Q2 earnings on Aug. 19, it missed on earnings and revenue. Since then, the stock’s struggled and is currently down more than 11%. Year-to-date (YTD), shares of HD are down 6.72%. 

The consumer discretionary mainstay is suffering from souring macro conditions. Consumer spending has slowed compared to 2024, and stocks like Home Depot are feeling the effects. 

But while the company’s earnings are only expected to grow by 3.11% over the next year, there’s plenty to like about the home improvement retailer. For starters, the stock is trading at a reasonable P/E of 24.60. 

Home Depot is also oversold, with its Relative Strength Index reading on a YTD chart at 29.71. Wall Street is largely convinced that a turnaround is likely, with the 23 analysts covering the stock giving it an average 12-month price target of $429.33, or 18.57% potential upside. 

Meanwhile, patient investors get paid to wait. Home Depot has raised its dividend payout for 16 consecutive years, making it a reliable holding for income investors. Currently, shares of Home Depot yield 2.54%, or $9.20 per share annually.   

T-Mobile’s Growth Is Underappreciated 

As the second-largest mobile carrier in the United States, T-Mobile had 140 million subscribers when it reported Q3 earnings on Oct. 23 it beat on earnings and revenue. The company announced EPS of $2.41 and revenue of $21.96 billion—an 8.9% YOY increase from 2024. 

How did the market react? By falling nearly 9% (through Nov. 6). The stock has recovered some of that loss since, but it remains in the red on the year, showing that investors largely overlooked T-Mobile’s revised full-year guidance. That includes: 

• Adjusted EBITDA from $33.3-$33.7 billion, to $33.7-$33.9 billion
• Adjusted free cash flow from a baseline of $17.6 billion to a baseline of $17.8 billion
• Fiber customer net additions from approximately 100,000 to approximately 130,000

However, Wall Street didn’t miss those numbers. Short interest stands at just 1.89%, and 32 analysts covering the stock assign it an average 12-month price target of $266.83, or 23.49% potential upside from today’s price. 

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