BUY THE DIP! 5 Hot Stocks to Buy Now (November’s Top Picks With Upside Ahead)

Summary

MarketBeat analyst Thomas Hughes presents five stocks he considers dip-buying opportunities for November. His central thesis is that markets are weighing heavy AI-related spending, debt, and near-term free-cash-flow pressure against the prospect of later monetization. He views recent weakness as a potential buying opportunity, arguing that new capacity and stronger cash generation could support a rebound over the coming quarters and next year.

Market and macro outlook

• Hughes says the market’s growth outlook remains constructive, but AI infrastructure costs, borrowing, and free cash flow are key near-term concerns.
• He views Google’s decline after its earnings report and higher planned capital expenditure as a continuation of that debate—not evidence that the AI investment case has broken. He argues that companies are still building data centers because they expect long-term value from them.
• He expects volatility around the election and says it could prompt a 5–10% market selloff, followed by greater stability as uncertainty recedes. This is his forecast, not a certainty.
• He cautions that elevated interest rates increase financing risk for “neo-cloud” companies. He says Nvidia’s partnerships and interest in these providers may help some withstand the pressure.

Five stocks Hughes favors

1. Oracle (ORCL)

   • Hughes sees Oracle as an AI-infrastructure investment whose data-center and supercomputer buildout is beginning to produce returns. He cites a growing order backlog, customer-provided upfront capital and project resources, and expected improvement in cash flow as capacity comes online.
   • He argues Oracle has a substantial cloud ecosystem “moat” and that its spending is more limited than critics suggest.
   • Analyst views are widely divided: the discussion cites price targets of $110–$400, with many above $200 and some near $250. Dan Ives’s cited target is $155.
   • Risks: Substantial debt and spending, execution and monetization delays, and significant valuation uncertainty. Hughes says the stock’s recent selloff reflects reality catching up with high expectations.

2. Salesforce (CRM)

   • Hughes says Salesforce is benefiting from demand for agent-based AI, customer growth, deeper market penetration, expanding margins, and double-digit growth. He also cites improving analyst forecasts and a shift toward a mature, blue-chip profile with capital returns.
   • He considers the shares undervalued relative to long-term prospects and says dips could remain buying opportunities if growth, cash flow, and buybacks continue.
   • The next earnings report was expected in early December. Hughes notes that expectations are high and negative guidance could pressure the stock.

3. Zscaler (ZS)

   • Hughes sees cybersecurity demand as a beneficiary of AI adoption: greater AI traffic and use create more need for security. He highlights Zscaler’s zero-trust architecture and says the company has rebuilt its sales team after earlier disruption.
   • He cites a valuation of roughly 50 times current-year guidance, acknowledging short-term valuation concerns even as he sees substantial long-term potential.
   • He expects price gains to be uneven and dependent on upcoming results confirming the earnings trajectory. He argues Zscaler may have more near-term recovery potential than cybersecurity peers such as CrowdStrike, which had already rebounded more.

4. Applied Digital (APLD)

   • Hughes says Applied Digital is expanding and monetizing data-center capacity, with contracts supporting its long-term outlook. He points to its North Dakota locations, available power, and room to expand, as well as upfront customer capital and equipment that he believes reduce project risk.
   • He describes the company as near an inflection point: buildout costs currently weigh on results, but he expects costs to moderate while monetization, margins, and cash flow improve over coming quarters.
   • The stock was described as trading below $20 and near multi-year or 18-month lows, after a prior move from around $2 to a peak near $50. Hughes calls $50 an extreme prior peak but says improved forecasts could eventually support new highs. He also characterizes the upside potential as very large; the discussion’s percentage comparisons are imprecise.
   • Risks: The company was not yet profitable, further declines were possible, and high interest rates could make debt harder to service. The host cites Kevin O’Leary’s estimate that over 60% of proposed data-center projects might fail; this is presented as O’Leary’s view, not Hughes’s.
   • Hughes says Nvidia’s financial and commercial relationships with some neo-cloud providers may help them survive, but acknowledges that financing risks remain.

5. Amprius Technologies (AMPX)

   • Hughes sees the company moving from speculation toward execution. He cites a $75 million government contract as validation and expects production capacity, revenue, and cash flow to ramp up, with profitability possible within two to three quarters.
   • He says revenue is growing at a triple-digit rate, while acknowledging that the latest results missed expectations and that expansion costs can weigh on near-term performance. The next earnings report was expected in early November.
   • His technical view uses Elliott waves: he interprets the recent low as part of a corrective move and anticipates a new cycle with three strong rallies if the company delivers on its plan.
   • Risks: The earnings report could disappoint, the business remains speculative, and institutional ownership is limited. Hughes says stronger results or news could encourage institutions to accumulate shares, but this is a potential catalyst rather than a guarantee.

Framework and cautions

Hughes’s recurring approach is to look for companies where:

• Short-term spending or market fears have depressed share prices.
• Customer demand, contracts, or orders support the long-term business case.
• New capacity can be brought online and monetized.
• Earnings, margins, and free cash flow may improve as investment shifts into revenue generation.
• Upcoming results can confirm—or undermine—the expected recovery.

These are Hughes’s opinions and forecasts. The subtitles contain no explicit “not financial advice” disclaimer.

Presenters and sources

• Bridget Bennett — Host/interviewer, identified in the video metadata
• Thomas Hughes — MarketBeat analyst and guest
• Kevin O’Leary — Cited by the host for his view on data-center project failure rates
• MarketBeat — Channel and source of the discussion