We recently published a list of 11 Best Buy-the-Dip Stocks to Buy Now. In this article, we are going to take a look at where Freshpet, Inc. (NASDAQ:FRPT) stands against other best buy-the-dip stocks to buy now.

As volatility rises, AllianceBernstein believes that staying invested remains a strategic priority to capture the long-term return potential in a broadening market. Global equities saw fresh difficulties in Q1 2025 amidst increased trade-war worries and developments in AI. As per the firm, bouts of volatility and a cloudy outlook highlighted the increased importance of diversification, valuations, and company fundamentals.

Realignment of Earnings

As per AllianceBernstein, recent shifts in equity return patterns highlight a deeper look at longer-term earnings trends. Over the previous 15 years, the US corporate earnings growth managed to outpace that of the non-US companies, reflected by the MSCI EAFE Index. The firm believes that, before 2010, this wasn’t always the scenario. Its research demonstrated that in 3 of the 4 decades since 1970, non-US earnings surpassed US earnings. This year, US corporate earnings growth is projected to come closer in line with that of earnings growth of the rest of the world, says AllianceBernstein. At the same time, the equity valuations outside the US remain at a significant discount, considering the 2025 forecast earnings.

Despite a difficult quarter, the firm opines that the US stocks are critical to any diversified allocation. Over the last 60 years, US earnings growth has continued to rise consistently, tackling significant economic and geopolitical shocks. Unshakeable US advantages— which span from innovation to education to corporate culture— form a critical factor for the equity returns. Overall, the firm believes that a US allocation with disciplined active portfolios throughout the style spectrum is the correct way to tap into the dynamic market.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

Measures Likely to Help US Stocks

According to BlackRock, the US is home to some renowned and innovative companies. The country remains at the forefront of the AI infrastructure buildout and a frontrunner on the global stage when it comes to both R&D spending and patent applications. IP laws continue to stimulate such an innovative impulse. As per the firm, the US possesses over half the world’s “unicorn” companies. According to them, any moves toward policy targeting deregulation can further accelerate the innovative edge.

These measures contribute to the firm’s positive long-run outlook for US stocks. Over the near term, it anticipates that the market will broaden out. This broadening will take place from “Magnificent 7” leadership to the rest of the US and also to other parts of the world. As per the asset manager, Q1 results can be a teaser. The developed markets, ex-U.S., are expected to lead returns, followed by emerging markets and then value stocks in the U.S.

Our Methodology

To list the 11 Best Buy-the-Dip Stocks to Buy Now, we used a screener to shortlist stocks that trade close to their respective 52-week lows. After getting an extended list of 25-30 stocks, we chose the ones popular among hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close up of a grocery store shelf with packages of the company's pet food products on it.

Freshpet, Inc. (NASDAQ:FRPT)

Closing Price as on April 28: $73.4

52-week Low: $72.195

Number of Hedge Fund Holders: 40

Freshpet, Inc. (NASDAQ:FRPT) is engaged in manufacturing, distributing, and marketing natural fresh meals and treats for dogs and cats. Benchmark Co. analyst Todd Brooks maintained the bullish stance on the company’s stock, giving a “Buy” rating on April 10 and a price target of $140. The analyst rating is backed by a combination of factors impacting the company’s current and future performance. The analyst lauded Freshpet, Inc. (NASDAQ:FRPT)’s healthy market position in the fresh dog food segment. Furthermore, the analyst’s rating is aided by the company’s dominant market share and growth potential in the US dog food market.

Freshpet, Inc. (NASDAQ:FRPT)’s low exposure to tariff-related costs, as well as historical correlation between advertising and higher website traffic, are regarded as positive indicators for future growth. In Q4 2024, its net sales increased 22.0% to $262.7 million compared to $215.4 million for the prior year period, mainly due to volume gains of 20.7%. For FY 2025, Freshpet, Inc. (NASDAQ:FRPT) expects net sales of between $1.18 billion – $1.21 billion, an increase of 21% – 24% from 2024. Furthermore, it anticipates adjusted EBITDA of at least $210 million.

Wasatch Global Investors, an asset management company, released its Q1 2025 investor letter. Here is what the fund said:

“Another detractor was Freshpet, Inc. (NASDAQ:FRPT), a company that sells fresh, refrigerated meals and treats for dogs and cats. Revenue growth was a little lower than the market expected in Freshpet’s most recently reported quarter, but we believe the stock-price reaction was overdone. We spoke with management after the earnings call and have done our own analysis of Freshpet’s revenue streams. Based on our own analysis, we believe the company’s growth over the next several years will be far more durable than the market expects. Additionally, as the company scales, we believe gross margins will increasingly benefit from more resilient and predictable demand, leading to more efficient manufacturing.”

Overall, FRPT ranks 4th on our list of best buy-the-dip stocks to buy now. While we acknowledge the potential of FRPT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than FRPT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.