Publish date:

Buy-the-Dip Candidates: Caterpillar, Chewy, Carnival

These stocks that fell in the past week could be buy-the-dip opportunities. Recent decliners include Caterpillar, Blackberry, Carnival, and more.

The Nasdaq and the S&P 500 on Monday closed at records as Wall Street prepared for a key meeting of the Federal Reserve later this week.

And the S&P 500 posted its second consecutive record closing high on Friday with investors assessing the Federal Reserve's stance that inflation spikes will prove to be transitory. The S&P 500 rose 0.4% last week, TheStreet's Joseph Woelfel noted. Jim Cramer doesn't expect changes from the Federal Reserve.

Cramer likes Caterpillar  (CAT) - Get Report and has liked Caterpillar for a while, and sees it as a good target for buyers of the dip should the Fed decide to begin unloading assets and markets fall. 

Here are several stocks that fell this past week and could present an opportunity to buy the dip.

1. Upstart | -26.65% Past Week | -20.64% 1 Month

The artificial-intelligence-driven lending platform Upstart  (UPST) - Get Report boosted its full-year revenue guidance and received price-target upgrades from Wall Street analysts. For fiscal 2021 Upstart expects $600 million in revenue, 20% higher than its previous estimate of $500 million. 

The company also reported a second-quarter-revenue forecast that topped expectations and first-quarter results that were better than expected.

TheStreet does not have a Quant Rating rating for Upstart.

2. GameStop | -18.06% Past Week | +43.47% 1 Month

When it comes to meme stocks, MeetKevin's Kevin Paffrath said last week that "momentum stock" is the more accurate term for stocks such as GameStop  (GME) - Get Report. But Cramer says that "meme stock" is a better name for GameStop and AMC  (AMC) - Get Report, while "momentum stock" could be a better term for Wendy's  (WEN) - Get Report

Cramer is in favor of keeping the phrase "meme stock" to distinguish normal trading action, where investors bet on companies they believe in, from meme stock trading, where Cramer says the objective is to punish short sellers. GameStop was up 1.68%, extending gains Friday of 5.9%.

TheStreet Quant Ratings rates GameStop as a Sell with a rating score of D.

Over on Real Money, Cramer writes about the curious case of GameStop vs. Chewy  (CHWY) - Get Report. He says, "Which would you rather have? A knocked-down stock of an also-ran, out-of-date, brick and mortar retailer with a very uncertain future run by an ex-Chewy guy, or a terrific, dominant e-retailer with a crushed stock that's run by a current Chewy guy. I don't know about you but I would take the latter any day of the week." Read more of his strategies and profit from his investing advice.

3. QuantumScape | -12.03% Past Week | +2.24% 1 Month

Electric vehicle battery makerQuantumScape Corp.  (QS) - Get Report reported first-quarter results that missed estimates. The company reported a net loss of 20 cents a share, compared with a 6-cent loss in the year-earlier quarter. Analysts polled by FactSet expected a loss of 7 cents a share for the latest period.

TheStreet does not have a Quant Rating rating for Quantumscape.

4. BlackBerry | -10.91% Past Week | +66.47% 1 Month

BlackBerry  (BB) - Get Report shares jumped to a nine-year high earlier this month as Reddit users continued to talk up the cybersecurity company. “BB is built different,” one Reddit user wrote. “Finally Wall Street is giving BlackBerry the recognition and share price it deserves.” The company was the second-most mentioned company on Stocktwits, a popular community of retail investors, trailing fellow meme stock AMC, Bloomberg reported.

TheStreet Quant Ratings rates Blackberry as a Sell with a rating score of D.

5. Skillz | -10.24% Past Week | +28.62% 1 Month

The mobile gaming company Skillz  (SKLZ) - Get Report recently said it had agreed to acquire the marketing platform Aarki for about $150 million in cash and stock. The company said the acquisition would broaden its footprint across the mobile gaming industry by combining its competitive platform with Aarki’s advanced advertising capabilities.

TST Recommends

TheStreet does not have a Quant Rating rating for Skillz.

6. Caterpillar | -8.65% Past Week | -9.59% 1 Month

Cramer does not expect the Federal Reserve to change its monetary policy, but should the Fed decide to begin unloading assets and markets fall, Caterpillar  (CAT) - Get Report could be a good target for buyers of the dip. Cramer said taper trades mostly affect commodities, but he specifically cited Caterpillar and some of the other stocks he follows. 

TheStreet Quant Ratings rates Caterpillar as a Buy with a rating score of A-.

7. BioNTech | -7.38% Past Week | +14.43% 1 Month

Pfizer Inc.  (PFE) - Get Report and BioNTech  (BNTX) - Get Report announced plans to provide the U.S. government 500 million doses of the companies' COVID-19 vaccine at a not-for-profit price. The companies will deliver 200 million doses in 2021 and 300 million doses in the first half of 2022, to further support the multilateral efforts to address the surge of infection in many parts of the world and to help end the pandemic. 

The government will, in turn, donate the Pfizer-BioNTech vaccine doses to low- and lower-middle-income countries and organizations that support them.

TheStreet Quant Ratings rates BioNTech as a Hold with a rating score of C.

8. Plug Power | -6.94% Past Week | +24.37% 1 Month

Fuel-cell maker Plug Power  (PLUG) - Get Report said it completed the restatement of its financial statements for the past three years. The company said the restatements had no effect on its cash position, business operations or economics of its commercial arrangements.

"For those who like hydrogen, the stock to like is Plug Power," Cramer said in an interview. "The company has been getting breakout orders, which I like. But at the same time hydrogen is at 60 bucks; it needs to be competitive with oil." 

TheStreet Quant Ratings rates Plug Power as a Sell with a rating score of D.

9. Carnival | -6.93% Past Week | +5.70% 1 Month

Cruise line operator Carnival Corp.  (CCL) - Get Report confirmed plans to restart passenger voyages next month. Carnival said cruises from its port in Galveston, Texas will begin on July 3 via its Carnival Vista, with the Carnival Breeze launching on July 15 from the Port of Miami. Passengers who have received their final dose of a CDC-approved coronavirus vaccine at least 14 days prior to sailing are eligible for travel, the company said. 

In March, Carnival received price-target increases from J.P. Morgan, based on the prospect of economic recovery.

TheStreet Quant Ratings rates Carnival as a Sell with a rating score of D.

10. Norwegian | -6.37% Past Week | +8.47% 1 Month

Norwegian Cruise Line Holdings  (NCLH) - Get Report announced the next phase of its planned resumption of cruising across its three cruise lines. The company announced plans for eight additional ships to relaunch beginning Fall 2021. 

Oceania Cruises will resume cruise operations with three additional ships between October 2021 and January 2022, and Regent Seven Seas Cruises will see all five ships back by February 2022. Voyages expected to operate in the U.S. are contingent on obtaining a Conditional Sailing Certificate from the CDC, and all initial voyages will operate with fully vaccinated guests and crew.

TheStreet Quant Ratings rates Norwegian Cruise Lines as a Sell with a rating score of D.

NOTE: Recently, Quantitative Analysis by TheStreet Quant Ratings objectively rated these stocks according to their risk-adjusted total return prospect over a 12-month investment horizon. Not based on the news on any given day, the rating may differ from Cramer's view or that of this articles' author.