In recent months, I’ve discovered that Dr. Ed Yardeni, former Chief Economist of Prudential Equity Group, and Deutsche Bank, is one of my favorite analysts of stocks and the economy. That’s because Yardeni, unlike many other analysts,  doesn’t rely on long-held, yet unproven beliefs like “Interest rates are rising, so stocks will fall” to make his predictions. Instead, he provides an in-depth analysis of the forces affecting the economy and the stock market.  As a result, with Yardeni now sounding very bullish on the U.S. economy and stocks, I’m convinced that investors should look for the best stocks to buy on a dip.

Refuting bears’ arguments about the narrowness of the stock market’s current rally, Yardeni recently noted that many stocks have reached all-time records in the last several weeks. He added that the earnings estimates for a multitude of firms have been revised higher, and he believes that artificial intelligence could cause a “Productivity boom,” leading to a “Roaring 2020’s boom.”

So with the economy and stocks potentially poised to surge, here are seven of the best stocks to buy on a dip.

Best Stocks to Buy on a Dip: MGM (MGM)

Despite the continued boom in Las Vegas, MGM (NYSE:MGM) stock sank 9.3% in the last month. I believe that the shares have tumbled because recent data has suggested that the Chinese economy is weakening, potentially boding poorly for the two casinos that MGM owns in the Asian country. But in the first quarter, MGM obtained only $618 million of revenue from China out of its total top line of $3.9 billion.

Moreover, in May, gross gaming revenue in China reached “a post-pandemic high,” and yoga apparel maker Lululemon (NASDAQ:LULU) reported that its revenue from “greater China” had surged 79% year-over-year in Q1. Given all of these points, I believe that MGM is one of the best stocks to buy on a dip.

American Superconductor (AMSC)

 American Superconductor (NASDAQ:AMSC) has rallied recently, but it’s still down 19% from its Feb. high of $6.57.

On May 31, the company announced it had “agreed to deliver nearly $20 million” of its wind turbine electrical control systems to India’s Inox Wind. The news indicates that AMSC’s long-dormant partnership with Inox is finally reaccelerating, boding very well for AMSC’s long-term outlook. And in two other very positive signs, the company on May 9 noted that it had obtained $30 million of orders for its “new energy power systems orders,” while it disclosed on April 25 that it had agreed to provide a new, “pre-production” anti-mine system for the U.S. Navy.

Last quarter, the company’s top line jumped over 10% year-over-year to a “recent record,” and CEO Daniel McGahn stated that it had reached a positive turning point. Further,  the CEO expects its gross margin to climb going forward and noted that the company’s 12-month backlog had exceeded $125 million, as the orders for its new energy power systems had surged over 75% during its fiscal 2022.

Maxeon (MAXN)

Maxeon (NASDAQ:MAXN), a China-based solar module producer, closed at $29.03 on June 1, well below its mid-May high of nearly $38. I believe that the shares have declined primarily due to worries about the Chinese economy and fears about the outlook of residential solar in the U.S. amid California’s reduced payments for electricity produced by rooftop solar systems. And the company’s offering of 7.5 million shares earlier this month also pushed down its share price.

But, as I noted in the section on MGM, China’s gross gaming revenue reached a post-lockdown record last month, while Lululemon reported that its revenue from “greater China” had surged 79% year-over-year in Q1. Given these points, I think it’s clear that concerns about the Chinese economy are overdone.

Meanwhile, consulting firm Wood McKenzie estimated that U.S. solar installations would jump 41% this year. And despite the negative development in California, the overall U.S. residential solar installations are expected to increase this year.

Finally, last quarter, Maxeon’s top line surged 43% year-over-year, and U.S. investors seem more upbeat about the stock than other China-based solar names.  Perhaps that’s because French energy giant TotalEnergies (NYSE:TTE) has a 36.4% stake in the company.

EVgo (EVGO)

The shares of EV charger operator EVgo (NASDAQ:EVGO) tumbled 35% in the month that ended on June 1.

The sharp downturn appears to have been sparked by the company’s decision, announced on May 17, to offer $125 million of new shares of its stock.

However, investment bank Stifel on May 17, shortly before the stock offering,  initiated coverage of the shares with a “buy” rating. The bank believes that EVgo has a “strong market position” in the fast charging space and a “solid track record” of choosing highly profitable locations for its chargers.

Also noteworthy is that, on April 4, the company announced that it would receive $6.6 million in subsidies from California. EVgo will use the funds to deploy chargers in the eastern and central portions of the state. Finally, EVgo should benefit a great deal from much larger federal subsidies for the deployment of EV chargers. These funds are expected to finally be disbursed next year.

Best Buy (BBY)

Best Buy (NYSE:BBY) is down about 20% from its Feb. high of $91.42. But I believe that guidance issued by PC maker Dell (NYSE:DELL) on June 1 bodes very well for BBY stock. Specifically, Dell expects its Q2 revenue to be “between down 3% and up 1%” versus Q1. Moreover, that includes a negative impact of two percentage points from currency fluctuations. The outlook indicates that the PC market is starting to recover, suggesting that other electronics markets could also be rebounding.

And the company expects its sales to climb in the second half of the year versus the first half. Given Dell’s outlook, I believe that Best Buy’s guidance for a comparable sales decline of 3%-6% this year is probably conservative. The shares have a very low forward price-earnings ratio of just 12 and a trailing price-sales ratio of only 0.37.

Roku (ROKU)

Roku (NASDAQ:ROKU) stock is down 20% from its Feb. high of around $71. But in a good sign for the shares, the spending on ads for connected TV is expected to climb over 14% this year. Moreover, the company on April 26 reported encouraging first-quarter results as its top line increased 1% year-over-year and it added a net total of 1.6 million active accounts versus the same period a year earlier. Further, Roku reported that it had a 43% share of smart TV sales in the U.S. last quarter.

Also encouraging is that the company expects its top line to climb to about $770 million this quarter, up from $741 million in Q1. Further, the company is targeting positive EBITDA, excluding certain items, next year. As recessionary fears dissipate in the second half of the year and in 2024, I expect the TV ad market to rebound meaningfully. Additionally, Roku’s strong account growth and high market share should enable it to significantly increase its ad revenue over the longer term.

El Pollo Loco (LOCO)

El Pollo Loco (NASDAQ:LOCO) reported good first-quarter results on May 4, as its top line climbed 4% versus the same period a year earlier and its income from operations more than doubled to $7.8 million. However, the shares are 28% below their February high of around $12.80. Additionally, LOCO stock has a low forward price-earnings ratio of 11.6 and a tiny trailing price-sales ratio of 0.7.

Also noteworthy is that Loco is aggressively looking to expand to new parts of the U.S. in the coming years. The expansion should meaningfully boost the company’s top and bottom lines. Finally, LOCO is launching a new ad strategy that could help it meaningfully increase its brand awareness going forward.

Given these points, LOCO is one of the best value stocks to buy on a dip at this point.

As of the date of publication, Larry Ramer owned shares of  MGM, AMSC, MAXN, and EVGO. His wife owned shares of LOCO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.