3 Top Stocks You'll Wish You Bought on the Dip

After the worst start to the year in decades, the major market indexes have rallied over the last month. Most companies have reported better-than-expected operating results. That indicates that investors could be undervaluing the long-term prospects of many solid companies right now.

Three Motley Fool contributors recently selected three stocks that have fallen this year and could be poised for a rebound. Here's why they like Electronic Arts (NASDAQ: EA), RH (NYSE: RH), and Pinterest (NYSE: PINS).

The market is underestimating the growth opportunity in mobile games

John Ballard (Electronic Arts): There are not many industries like video games. Leading game companies can produce a game that provides hours of entertainment, which significantly lowers the cost per hour to buy a game. This is why, with the exception of disappointing results at Roblox, time spent with with video games has held up well despite headwinds in the economy.

Year to date, shares of Electronic Arts are up 2% at the time of this writing, outperforming the S&P 500 index, which is down 10%. But EA shares are off 13% from their all-time high and have been mostly trading sideways in recent years. As management continues releasing new games and expanding into new markets, it's only a matter of time before the stock breaks out and climbs higher.

In the most recent quarter, EA reported double-digit growth in bookings over the year-ago quarter. Its player base grew to nearly 600 million active accounts.