Profit From This Quality Stockâs Seven-Day Dip By Lucas Downey, Contributing Editor, TradeSmith Daily Sometimes, a quality stock is at such a deep discount, it’s tempting to just “buy now, ask questions later.” But we all know it’s better to do the work and ask a few questions first. Otherwise, you might just be buying into a downtrend with no end in sight. What can you learn about this stock’s history? Will that help you make an educated forecast before buying in? The best way to buy the dip is when the evidence suggests two potential outcomes: - The current drawdown offers a compelling entry point…
- If the stock keeps falling, the evidence suggests an even bigger pop is ahead.
This is called stacking the odds in your favor. Let’s face it, as a trader we want as many factors as possible pointing to a good result. Today, we’ll isolate one high-quality stock on sale that fell seven days in a row. As I’ll show you, this is not only a great setup… But it’s also a welcome entry no matter if the stock falls for another day… or even three more. Before you ever buy any dip – make sure the data signals a reason to do so… | Recommended Link | | | | When Louis Navellier talks tech, Silicon Valley’s elite listen. That’s because he spotted their companies first – Microsoft, Apple, Dell, and most famously, Nvidia at $1. Now this 40-year Wall Street veteran has identified a small chip maker that he says could be Silicon Valley’s next darling. Get the name free before the mainstream media catches on. |  |
A Bad Down Streak on a Great Stock Markets have been effectively flat for more than two months. But that doesn’t mean that all is muted under the surface. A case in point is health care instruments and equipment maker Thermo Fisher Scientific (TMO), which fell seven days in a row from Feb. 5 to Feb. 14. That equates to a 9% pullback: 
This is important for two reasons. The first of which is the fact that TMO is a high-quality business. This is a company that in 2024 had revenues of $42.9 billion and net income of $6.3 billion. Estimates for 2026 have TMO clocking sales of $46.8 billion and net income of $9.65 billion. Clearly this is a top-notch operation. It rakes in the cash, and it’s still forecast to grow. And you can know this at the click of a button with the TradeSmith Business Quality Score (BQS) module, available in our analysis platform TradeSmith Finance for our subscribers. This ranking feature grades a company on profitability, safety, growth, and payout. Just like in school, the higher the score, the better! A BQS of 83 represents a super high-quality stock: 
Now that we’ve identified the health of Thermo Fisher as a company, let’s circle the wagon on the second reason this big pullback in the stock is important: It’s due for a big pop! The following signal study proves why… What History Says Happens Next A seven-day consecutive drop for TMO shares is rare. In fact, we found only 29 similar historical instances. The good news is that the shares tend to bounce 1.8% a month later, and 4.5% two months later after seven-day pullbacks. The great news is even if TMO continues to fall for another few days, the forward two-month average returns only increase. Two months after an eight-day plunge, TMO gains 4.5%. If it’s a nine-day drawdown, the two-month return pops to 5.1%… And if the red lasts 10 days, expect a 6.1% rally: 
Based on the quality of this business and the historical evidence, this isn’t a dip to avoid. It’s one to embrace. After all, buying pullbacks on long-term winning investments is ultimately a solid strategy. TMO looks like one of these rare events. The bull market is full of hidden opportunities… Stay tuned to TradeSmith Daily to learn about more of them just like this one. Regards, Lucas Downey
Contributing Editor, TradeSmith Daily Note from Michael Salvatore, Editor, TradeSmith Daily: A global AI frenzy is underway… And investors who play it right will make fortunes. We’ve already seen the proof right in front of us… China’s DeepSeek fired a warning shot across Nvidia’s bow. Alibaba says it has a new platform that’s even better than DeepSeek. And not only has President Donald Trump freed AI’s proliferation from Joe Biden’s red tape… He’s announced a $500 billion AI initiative – Stargate – designed to beat China to AI dominance. That’s where Louis Navellier of InvestorPlace comes in… Louis is an investing veteran with 47 years of experience trading the markets. He called Vertiv before it soared 1,000%, Super Micro before it went up 1,900%, and Nvidia before it soared 37,000%… Now, he just shared details on seven AI “crossover” companies poised to surge. But act soon – today is the last day of Louis’ AI Crossover summit where he’s offering a special offer for new subscribers of his Breakthrough Stocks research service. Click here for more details. | 
