Top 3 Stocks to Buy on Pullbacks in 2025

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Jul 8, 2025

Want to catch the next big stock rally? Discover 3 top picks with ideal buy levels for 2025, but are you ready for the perfect entry point?

Financial market analysis from 08/07/2025. Market conditions may have changed since publication.

Have you ever watched a stock soar and kicked yourself for not jumping in sooner? I know I have. The market’s wild ride in 2025 has been nothing short of a rollercoaster, with stocks rebounding fiercely from April’s lows tied to tariff talks. But here’s the thing: missing one rally doesn’t mean you’re out of the game. Long-term investing is about patience, strategy, and knowing when to strike. In this article, I’m diving into three stocks that have caught my eye—not just for their impressive runs but for their potential to offer smart entry points if they pull back. Let’s explore why these companies are worth your attention and how to spot the best moments to buy.

Why Timing Matters in Stock Investing

Timing the market perfectly is like trying to catch lightning in a bottle—near impossible. But that doesn’t mean you should ignore the charts. While I’m a firm believer in fundamental analysis—digging into a company’s earnings, growth prospects, and competitive edge—there’s something to be said for technical signals. Charts help you see what all investors, rational or not, are doing. They reveal patterns, like moving averages or support levels, that can guide your entry points. So, let’s combine the best of both worlds: solid businesses with clear technical levels to watch for buying opportunities.


GE Vernova: Powering the Future

First up is GE Vernova, a company that’s electrifying the market—literally. Spun off from General Electric in April 2024, this firm is all about meeting the world’s growing demand for power and electrification. Think wind turbines, gas power, and grid solutions. With global energy needs skyrocketing, GE Vernova is positioned to thrive, but where should you consider buying?

The world’s hunger for energy isn’t slowing down, and companies like GE Vernova are at the forefront of this transformation.

– Industry analyst

Looking at the charts, three key levels stand out for potential pullbacks. The 50-day moving average sits around $456, offering a relatively shallow dip of about 13% from recent highs. If the stock falls further, the $406 mark—roughly 23% lower—aligns with valuations seen during April’s tariff-driven dip. Finally, the 200-day moving average at $356, a 32% pullback, could be a strong support level, especially since the stock recently broke through a long-term resistance around $350.

  • $456: 50-day moving average, a first chance to buy on a moderate dip.
  • $406: Mid-range, tied to historical valuations from April’s lows.
  • $356: 200-day moving average, a deeper pullback with strong support.

But here’s a caveat: a drop to these levels could signal broader market weakness or company-specific issues. If it’s the former, it’s likely a buying opportunity. If it’s the latter—like an earnings miss—you’d need to double-check the investment thesis. In my experience, GE Vernova’s focus on clean energy and electrification makes it a compelling long-term hold, but always keep an eye on the “why” behind any price movement.


Honeywell: A Breakout with Breakup Potential

Honeywell is one of those companies that just feels like a steady hand in a stormy market. This industrial tech giant serves industries from aerospace to automation, and its planned breakup into three separate companies—Automation, Aerospace, and Advanced Materials—has investors buzzing. Why? Because breakups often unlock hidden value, and Honeywell’s management seems laser-focused on doing just that.

From a technical perspective, Honeywell’s chart is a beauty. It recently formed a golden cross, where the 50-day moving average crossed above the 200-day, signaling bullish momentum. But for those waiting for a dip, three levels are worth watching: $230, $220, and $200, representing pullbacks of 4%, 8%, and 17%, respectively.

Corporate breakups can be a goldmine for investors if executed well.

– Financial strategist

The $230 level is intriguing because it’s a former resistance that flipped to support after the stock broke through in late 2024. If that fails, $220 is next, backed by both the 50-day moving average ($222) and prior support from mid-2024. The $200 level, a long-term support for over a year, is a deeper dip but could be a bargain if the market overreacts to external noise, like tariff threats.

Entry PointPullback %Technical Support
$2304%Former resistance, now support
$2208%50-day moving average, prior support
$20017%Long-term support level

I’ve always admired Honeywell’s ability to adapt, and the breakup plan feels like a bold move to sharpen its focus. But if the stock dips below both moving averages, proceed with caution—it might signal a shift in sentiment that warrants a closer look at the fundamentals.


Amazon: More Than Just Online Shopping

Amazon needs no introduction, but it’s easy to forget how much more it is than an e-commerce giant. Its cloud computing arm, AWS, is a cash cow, and its advertising business is growing like wildfire. Add in AI innovations across its operations, and you’ve got a company that’s hard to bet against. But even Amazon’s stock can pull back, offering savvy investors a chance to get in.

The chart points to three entry levels: $210, $205, and $190, representing pullbacks of 6%, 8%, and 15%. The $210 level has flipped from resistance to support, as seen in late June 2025. At $205, you’re sitting right at the 50-day and 200-day moving averages, which are converging in a golden cross—a bullish sign. The $190 level, a prior resistance until November 2024, could act as support if the stock dips further.

  1. $210: Recent support level, tested in late June 2025.
  2. $205: Convergence of 50-day and 200-day moving averages.
  3. $190: Former resistance, now potential support.

Amazon’s fundamentals are rock-solid, but a drop below $205 would mean breaking both moving averages, so you’d want to reassess. Perhaps the most interesting aspect of Amazon is how its AI investments are quietly transforming its business, from logistics to advertising. If you’re waiting for a pullback, these levels give you a roadmap to act.


How to Use These Levels Strategically

So, how do you actually use these entry points? It’s not just about buying at a certain price—it’s about context. A pullback caused by a broad market sell-off, like tariff fears, is often a golden opportunity. But if a stock dips due to company-specific issues, like an earnings miss or a change in leadership, you need to dig deeper. Here’s a simple framework to follow:

Investment Decision Framework:
  1. Confirm the pullback level (50-day, 200-day, or historical support).
  2. Assess the cause (market-wide vs. company-specific).
  3. Re-evaluate the investment thesis (fundamentals still intact?).
  4. Plan your entry (split buys across levels for risk management).

In my view, splitting your investment across multiple entry points—say, a third at each level—can help manage risk while capitalizing on dips. It’s like planting seeds at different times to ensure a good harvest. But always, always check the fundamentals before pulling the trigger.


Why These Stocks Stand Out

GE Vernova, Honeywell, and Amazon aren’t just random picks—they’re companies with strong fundamentals and clear catalysts. GE Vernova is riding the wave of global energy demand. Honeywell’s breakup could unlock significant value. Amazon’s dominance in cloud and AI keeps it ahead of the curve. But what ties them together is their resilience, even in a volatile market.

Investing in great companies at the right price is the key to long-term wealth.

These stocks have already rallied hard, but pullbacks are part of the game. By watching key technical levels and staying grounded in fundamentals, you can position yourself for the next leg up. Whether it’s a 4% dip or a 30% one, preparation is everything.


The Bigger Picture: Patience Pays

Investing isn’t about chasing every rally—it’s about finding the right moment to act. The market’s recovery from April’s tariff scare shows how quickly sentiment can shift. But as someone who’s watched markets for years, I can tell you that patience often beats haste. These three stocks—GE Vernova, Honeywell, and Amazon—offer a mix of growth, value, and technical setups that make them worth watching.

So, what’s your next move? Will you wait for a dip, or are you ready to jump in now? Whatever you choose, keep these levels in your back pocket and always double-check the “why” behind any price move. The market’s always got another opportunity waiting—just make sure you’re ready to seize it.

The market can stay irrational longer than you can stay solvent.
— John Maynard Keynes
Author

Steven Soarez passionately shares his financial expertise to help everyone better understand and master investing. Contact us for collaboration opportunities or sponsored article inquiries.

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