When looking for stocks to buy, a good place to start is in areas of the market that are out of favour. For example, FTSE 100 banks were deeply unpopular a few years ago, as was the Footsie index itself. Now they’re back with a bang.
So which stocks are currently unloved? Well, worried about AI disruption, the market has rotated into value, leaving a lot of high-quality growth shares out of vogue.
As such, here are two stock dip-buying opportunities worth checking out.
Better insulated from AI risk
Let’s start with Netflix (NASDAQ:NFLX). The stock had sold off heavily since last summer, as investors worried about the streamer’s attempt to buy Warner Bros. Discovery for a colossal sum.
The company has now abandoned this debt-fuelled bid, sending its share price up more than 20% in recent days. However, at $95 per share, this still leaves Netflix almost 30% off its June high of $134.
As mentioned, AI is weighing on growth stocks. Some investors fear the technology makes content creation far easier, potentially enabling rivals to emerge with endless free AI content.
My view is this risk is overblown. Instead, I think people are quickly growing tired of ‘AI slop’, and that the high-quality content that Netflix creates with those quaint, flesh-and-blood human actors isn’t going out of fashion.
I reckon Netflix subscriptions will prove very resilient — and trend upwards over time, boosting profits.
Moreover, I think AI should benefit the firm rather than hurt it. For example, it should lower content creation costs, not necessarily by replacing human actors and writers, but by cutting production waste and improving dubbing and localisation technology.
AI should also improve high-margin advertising solutions and content discovery. Ad revenue is expected to roughly double in 2026, while Netflix expands into podcasts, cloud-first gaming, and live sports.
JPMorgan analysts agree, saying they “believe storytelling and talent will remain critical moats, ultimately better insulating Netflix from AI disruption risk compared to transactional business models“.
Netflix stock isn’t cheap today (it very rarely is). But I see no evidence that its ambition to become a $1trn company over the medium term — a more than doubling from today — is about to be derailed by AI.
Taking market share
Next, we have On Holding (NYSE:ONON), the Swiss premium sportswear brand. As I write, the stock is down 12% today (3 March).
This despite the company growing sales 30% to 3bn Swiss francs (roughly $3.8bn) last year. On a constant currency basis, revenue grew 35.6%, which is exceptional given the tough consumer backdrop.
So, what’s the problem here? The 2026 guidance for 23% sales growth, representing a deceleration from 2025. This figure is slightly below Wall Street’s expectations — shock, horror! — and currency changes present risks.
However, the strong ongoing growth indicates that On continues to take market share from legacy brands Nike and Adidas, due to its focus on innovation and high-performance footwear. Sales across Asia Pacific skyrocketed 96.4% last year.
Meanwhile, the gross profit margin increased to 62.8% from 60.6%, boosted by its premium positioning. And On expects this to rise to at least 63% this year.
The company is opening robotic factories to make its cutting-edge LightSpray running shoes, which over time should help insulate its profits from tariff uncertainty and supply chain disruptions.
