This Metric Says Buy the Dip on These Nasdaq Stocks

The recent volatility in the stock market has created some interesting buying opportunities. Shares of Advanced Micro Devices (NASDAQ: AMD) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are trading down 25% and 15%, respectively, from recent all-time highs, but their forward price-to-earnings (P/E) ratios based on 2025 earnings estimates look modest.The momentum these two Nasdaq stocks are seeing in their businesses this year could set them up for sharp share price rebounds over the next year. Let's take a closer look at why you should consider buying each stock on the dip.AMD's 25% share-price dip has brought the stock's forward P/E down to 28 based on 2025 earnings estimates. This rate is still a bit higher than the Nasdaq-100's average forward P/E of 25.4, but Wall Street analysts expect AMD's earnings to grow at an annualized rate of 41% over the next several years. When you buy a stock with outstanding growth prospects at a P/E that is not much higher than the average stock, you're setting yourself up for excellent returns.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool