3 Long-Term Stocks to Buy on the Dip: May 2024

Economic Overview - The U.S. economy is demonstrating resilience with recent data indicating growth, including a 25-month high in the S&P Global composite PMI for May [1] - Chief economist Chris Williamson suggests a solid GDP gain for Q2, despite challenges like rising input prices and potential inflationary pressures [1] Okta (OKTA) - Okta, a cybersecurity company, is currently trading at $97.16, having increased 10.28% over the past year but is down 66.7% from its all-time high [2] - The global Identity and Access Management (IAM) market is projected to grow from $12.56 billion in 2022 to $27.88 billion by 2028, with a CAGR of 14.21%, positioning Okta to benefit from this growth [2] - In Q4 2024, Okta reported a 19% YOY revenue increase to $605 million and a net income of $113 million, up 117% YOY, with a cash position of $2.202 billion [3] - Okta's acquisition of Spera aims to enhance its threat detection and security capabilities, reinforcing its market position [3] SoFi Technologies (SOFI) - SoFi Technologies is currently trading at a discount, down 28.29% YTD, but analysts project a 12-month price target of $9.00, indicating a potential 28.21% increase [5] - The global consumer finance market is expected to reach $1.65 trillion by 2030, growing at a CAGR of 7.21%, driven by increased digital platform usage [5] - In Q1 2024, SoFi's revenue rose 37% YOY to $645 million, with net income at $88 million and EBITDA increasing 91% YOY to $144 million, surpassing expectations [6] - SoFi's diversified revenue streams from lending, financial services, and tech platforms are crucial for its profitability during economic downturns [6] Delta Air Lines (DAL) - Delta Air Lines was recognized as the top operating airline for the 13th consecutive year in the Business Travel News Airline Survey, noted for its customer service and expansive network [7] - The global airlines market was valued at $553.9 billion in 2022 and is projected to reach $735 billion by 2030, growing at a CAGR of 3.6% [7] - In Q1 2024, Delta reported $13.75 billion in revenue, a 7.75% YOY increase, with net income and diluted EPS rising over 110% YOY [8] - Delta's earnings forecast for Q2 exceeds expectations, driven by increased global travel demand, making it a strong candidate for long-term investment [8]