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Best 3 Non-AI Stocks to Buy Now on the Dip Amid the AI Stock Selloff
Key Takeaways
The Zacks Rank #2 (Buy) engine maker tripled the S&P 500 over the past 20 years. Yet CMI is down 29%.
Argenx's blockbuster autoimmune disease drug Vyvgart is shining, and it's expanding its reach.
Trucking remains a backbone of the economy. PCAR is projected to grow its EPS by 18% in FY26 and 22% in FY27.
AI stocks sold off Wednesday and in early morning trading Thursday as investors raced to protect profits.
That said, there are a ton of long-term deals out there on Wall Street right now on stocks that are posting impressive earnings and revenue growth outside of the artificial intelligence spending boom.
First up is Cummins, which manufactures engines and powertrains for trucks, buses, off-highway construction equipment, and more.
Next, we dive into Argenx and its impressive upside as it attempts to expand its flagship autoimmune disease drug Vyvgart.
The final non-AI stock we explore is PACCAR. The major U.S. automotive manufacturer builds commercial trucks across multiple brands and will thrive as trucking remains a backbone of the economy.
Best Stocks to Buy Now and Hold for Long-Term Upside: CMI
Cummins (CMI - Free Report) is a historic engine and powertrain manufacturer that operates across trucking, busing, off-highway construction equipment, generators and beyond. CMI’s lineup of engine technologies includes diesel, natural gas, and alternative fuel engines.
It’s worth highlighting that the diesel engine-making powerhouse is benefiting from the AI data center boom via its growing standby power segment and its battery energy storage systems (BESS). But it remains, at its core, an engine maker.
Image Source: Zacks Investment Research
Cummins posted roughly flat revenue growth over the past two years after averaging 20% revenue growth between 2021 and 2023—it posted a similarly impressive stretch of earnings expansion.
Now it is back in growth mode, with it projected to grow its revenue by 12% in 2026 and another 9% next year to reach $41.13 billion, up from $33.67 billion last year.
Cummins is expected to expand its adjusted earnings by 25% this year and 18% next year. Its recent upward EPS revisions for FY27 land it a Zacks Rank #2 (Buy). Plus, the chart above highlights its impressive earnings outlook for 2028.
Image Source: Zacks Investment Research
The engine maker tripled the S&P 500 over the past 20 years, soaring ~1,500%—including a ~120% climb in the past five years. Yet CMI is down ~29% from its summer highs, which means Cummins offers investors roughly 40% upside if it ever returns to its peaks.
Its drop, coupled with its strong earnings outlook, has Cummins trading nearly in line with its 15-year median at 15.5X forward 12-month earnings.
Image Source: Zacks Investment Research
Cummins is looking to find technical support near its long-term 21-month moving average and its pre-breakout highs. The dividend-paying company with a strong balance sheet is also trading at some of its lower RSI levels in recent years, after reaching its most overbought level earlier this year.
Buy Biotech Stock ARGX Now on the Dip
Netherlands-based biopharmaceutical stock Argenx (ARGX - Free Report) has soared ~3,800% since its 2017 U.S. IPO. Its earnings and revenue growth outlook is impressive as its flagship autoimmune disease drug Vyvgart shines. Argenx’s autoimmune drug Vyvgart reached blockbuster status—a prescription medication that generates at least $1 billion in annual global sales—in its second full year on the market.
ARGX is critically looking to expand its blockbuster drug across multiple autoimmune diseases. It is actively pursuing new indications for Vyvgart and adding to its pipeline via its $2.2 billion acquisition of Forte Biosciences, which closed in late August.
Image Source: Zacks Investment Research
All of this is part of the company’s Vision 2030 initiative focused on treating 50,000 patients globally by 2030 and securing “10 labeled indications” for Vyvgart, up from three right now. ARGX also aims to “progress five pipeline candidates into registrational development by 2030.”
Argenx is projected to grow its revenue by 49% in 2026 and another 23% next year, climbing from $4.25 billion in 2025 to $7.75 billion in 2027—following 89% growth in 2025 and 78% revenue expansion in 2024. The biotech firm is expected to grow its adjusted earnings by 47% YoY in 2026 and 31% next year to hit $37.58 a share, up from $19.57 in 2025.
ARGX has beaten our bottom line estimates by an average of 17% in the past four quarters. Wall Street is bullish on ARGX, with 26 of the 31 brokerage recommendations Zacks has at “Strong Buys” alongside zero sells. Argenx also sports a pristine debt-free balance sheet that will help it pursue more strategic acquisitions.
Image Source: Zacks Investment Research
Argenx has dropped ~20% from its late-August peaks, with its average Zacks price target implying 43% upside. It recently found support at a key technical range and is attempting to overtake its 200-day moving average.
Valuation-wise, Argenx is trading at a 45% discount to its industry and 52% below its 12-month highs at 22.9X forward 12-month earnings.
PACCAR: A Great Buy-and-Hold Stock that Doesn’t Need AI Help
PACCAR (PCAR - Free Report) is a major U.S. automotive manufacturer building premium commercial trucks under Kenworth, Peterbilt, DAF, and other brands. The firm also sells parts, engines, and offers financing for its various trucks. PCAR is expanding its core diesel truck segment while boosting its battery electric offerings and alternative fuels.
Image Source: Zacks Investment Research
Trucking remains a backbone of the economy, no matter how AI reshapes it. Trucks help deliver roughly 70% of all domestic freight tonnage, and they will continue to dominate commercial transportation even in a possible driverless vehicle future. This backdrop is why PACCAR has reported 87 straight years of profitability and paid a dividend every year since 1941.
PACCAR experienced a cyclical downturn in 2025 and 2024 after averaging 23% revenue expansion and 57% adjusted earnings growth between 2021 and 2023. It is back in growth mode as its customers benefit from “higher freight rates due to constrained industry freight capacity.”
Image Source: Zacks Investment Research
PACCAR also said last quarter that “fleet age has increased… providing an opportunity for customers to refresh their fleets with newer, more fuel-efficient trucks.” It notd that the “U.S. EPA provided helpful clarification of emissions regulations” in July that will be “beneficial to customers as they make truck purchasing decisions for the second half of this year and 2027.”
The truck maker is projected to grow its adjusted earnings by 18% in FY26 and 22% in FY27 on 9% and 12% sales growth, respectively. PACCAR’s earnings estimates have continued to improve for 2027 and 2028, ending its downturn and showing its cyclical industry-wide decline is in the rearview.
Image Source: Zacks Investment Research
PACCAR shares have soared 285% in the last 15 years vs. its sector’s 178%, including a 95% run in the last five years to outpace the S&P 500 and crush its industry’s -14% downturn. This is part of a ~1,500% climb over the last 25 years vs. the benchmark’s 667%—its total return hit ~3,500% when factoring in dividend reinvestments.
The stock is down ~20% from its July records after finding buyers right at its June lows. On the valuation side, it is trading nearly in line with its 15-year median and 30% below its highs at 15.6X forward earnings.
View the Zacks #1 Rank List
Image: Bigstock
Best 3 Non-AI Stocks to Buy Now on the Dip Amid the AI Stock Selloff
Key Takeaways
AI stocks sold off Wednesday and in early morning trading Thursday as investors raced to protect profits.
That said, there are a ton of long-term deals out there on Wall Street right now on stocks that are posting impressive earnings and revenue growth outside of the artificial intelligence spending boom.
First up is Cummins, which manufactures engines and powertrains for trucks, buses, off-highway construction equipment, and more.
Next, we dive into Argenx and its impressive upside as it attempts to expand its flagship autoimmune disease drug Vyvgart.
The final non-AI stock we explore is PACCAR. The major U.S. automotive manufacturer builds commercial trucks across multiple brands and will thrive as trucking remains a backbone of the economy.
Best Stocks to Buy Now and Hold for Long-Term Upside: CMI
Cummins (CMI - Free Report) is a historic engine and powertrain manufacturer that operates across trucking, busing, off-highway construction equipment, generators and beyond. CMI’s lineup of engine technologies includes diesel, natural gas, and alternative fuel engines.
It’s worth highlighting that the diesel engine-making powerhouse is benefiting from the AI data center boom via its growing standby power segment and its battery energy storage systems (BESS). But it remains, at its core, an engine maker.
Image Source: Zacks Investment Research
Cummins posted roughly flat revenue growth over the past two years after averaging 20% revenue growth between 2021 and 2023—it posted a similarly impressive stretch of earnings expansion.
Now it is back in growth mode, with it projected to grow its revenue by 12% in 2026 and another 9% next year to reach $41.13 billion, up from $33.67 billion last year.
Cummins is expected to expand its adjusted earnings by 25% this year and 18% next year. Its recent upward EPS revisions for FY27 land it a Zacks Rank #2 (Buy). Plus, the chart above highlights its impressive earnings outlook for 2028.
Image Source: Zacks Investment Research
The engine maker tripled the S&P 500 over the past 20 years, soaring ~1,500%—including a ~120% climb in the past five years. Yet CMI is down ~29% from its summer highs, which means Cummins offers investors roughly 40% upside if it ever returns to its peaks.
Its drop, coupled with its strong earnings outlook, has Cummins trading nearly in line with its 15-year median at 15.5X forward 12-month earnings.
Image Source: Zacks Investment Research
Cummins is looking to find technical support near its long-term 21-month moving average and its pre-breakout highs. The dividend-paying company with a strong balance sheet is also trading at some of its lower RSI levels in recent years, after reaching its most overbought level earlier this year.
Buy Biotech Stock ARGX Now on the Dip
Netherlands-based biopharmaceutical stock Argenx (ARGX - Free Report) has soared ~3,800% since its 2017 U.S. IPO. Its earnings and revenue growth outlook is impressive as its flagship autoimmune disease drug Vyvgart shines. Argenx’s autoimmune drug Vyvgart reached blockbuster status—a prescription medication that generates at least $1 billion in annual global sales—in its second full year on the market.
ARGX is critically looking to expand its blockbuster drug across multiple autoimmune diseases. It is actively pursuing new indications for Vyvgart and adding to its pipeline via its $2.2 billion acquisition of Forte Biosciences, which closed in late August.
Image Source: Zacks Investment Research
All of this is part of the company’s Vision 2030 initiative focused on treating 50,000 patients globally by 2030 and securing “10 labeled indications” for Vyvgart, up from three right now. ARGX also aims to “progress five pipeline candidates into registrational development by 2030.”
Argenx is projected to grow its revenue by 49% in 2026 and another 23% next year, climbing from $4.25 billion in 2025 to $7.75 billion in 2027—following 89% growth in 2025 and 78% revenue expansion in 2024. The biotech firm is expected to grow its adjusted earnings by 47% YoY in 2026 and 31% next year to hit $37.58 a share, up from $19.57 in 2025.
ARGX has beaten our bottom line estimates by an average of 17% in the past four quarters. Wall Street is bullish on ARGX, with 26 of the 31 brokerage recommendations Zacks has at “Strong Buys” alongside zero sells. Argenx also sports a pristine debt-free balance sheet that will help it pursue more strategic acquisitions.
Image Source: Zacks Investment Research
Argenx has dropped ~20% from its late-August peaks, with its average Zacks price target implying 43% upside. It recently found support at a key technical range and is attempting to overtake its 200-day moving average.
Valuation-wise, Argenx is trading at a 45% discount to its industry and 52% below its 12-month highs at 22.9X forward 12-month earnings.
PACCAR: A Great Buy-and-Hold Stock that Doesn’t Need AI Help
PACCAR (PCAR - Free Report) is a major U.S. automotive manufacturer building premium commercial trucks under Kenworth, Peterbilt, DAF, and other brands. The firm also sells parts, engines, and offers financing for its various trucks. PCAR is expanding its core diesel truck segment while boosting its battery electric offerings and alternative fuels.
Image Source: Zacks Investment Research
Trucking remains a backbone of the economy, no matter how AI reshapes it. Trucks help deliver roughly 70% of all domestic freight tonnage, and they will continue to dominate commercial transportation even in a possible driverless vehicle future. This backdrop is why PACCAR has reported 87 straight years of profitability and paid a dividend every year since 1941.
PACCAR experienced a cyclical downturn in 2025 and 2024 after averaging 23% revenue expansion and 57% adjusted earnings growth between 2021 and 2023. It is back in growth mode as its customers benefit from “higher freight rates due to constrained industry freight capacity.”
Image Source: Zacks Investment Research
PACCAR also said last quarter that “fleet age has increased… providing an opportunity for customers to refresh their fleets with newer, more fuel-efficient trucks.” It notd that the “U.S. EPA provided helpful clarification of emissions regulations” in July that will be “beneficial to customers as they make truck purchasing decisions for the second half of this year and 2027.”
The truck maker is projected to grow its adjusted earnings by 18% in FY26 and 22% in FY27 on 9% and 12% sales growth, respectively. PACCAR’s earnings estimates have continued to improve for 2027 and 2028, ending its downturn and showing its cyclical industry-wide decline is in the rearview.
Image Source: Zacks Investment Research
PACCAR shares have soared 285% in the last 15 years vs. its sector’s 178%, including a 95% run in the last five years to outpace the S&P 500 and crush its industry’s -14% downturn. This is part of a ~1,500% climb over the last 25 years vs. the benchmark’s 667%—its total return hit ~3,500% when factoring in dividend reinvestments.
The stock is down ~20% from its July records after finding buyers right at its June lows. On the valuation side, it is trading nearly in line with its 15-year median and 30% below its highs at 15.6X forward earnings.