It may seem like $100 isn’t a lot of money to invest in the stock market. But over time, you can increase that total and increase your stake in a company. Investing, even a small amount, is a good way to at least get your feet wet and slowly gain some exposure to a stock without going all-in right away.
There are many good growth stocks where $100 will allow you to own at least a full share of the company. Three stocks that investors should consider investing in for the long term are PayPal (NASDAQ:PYPL), Palantir Technologies (NYSE:PLTR)And CRISPR therapeutics (NASDAQ:CRSP). Here’s why these can be great investments in the years to come.
PayPal stock is currently trading at around $61 per share, which is arguably a good deal for that. financial technology company. A few years ago, the stock was easily trading at more than double that value. Investors are concerned about the company’s growth prospects as there is increased competition from other online payment services.
But the digital payments industry is huge. Analysts at Markets and Markets predict its value will reach $193.7 billion by 2028 (up from $111.2 billion in 2023). This is a growing sector as consumers continue to spend more money online. And there’s enough room for multiple platforms.
Even if Apple Payment and other services take up a larger share of the pie, PayPal remains one of the leading online payment options in the world. As long as the industry continues to grow, PayPal’s business should grow as well. From 2019 to 2022, the company’s revenue more than doubled, from $17.8 billion to $27.5 billion.
HAS forward price/earnings ratio (P/E) of just over 11, the fintech stock looks incredibly cheap, relative to S&P500 on average, where investors pay a multiple of 21 times future earnings.
2. Palantir Technologies
To buy a share of Palantir stock, you’ll need to spend less than $18 today. The data analytics company has generated impressive growth over the past few years. From less than $743 million in 2019, its revenue has nearly tripled to $1.9 billion in 2022. What’s exciting is that Palantir is still seeing strong growth, thanks to intelligence artificial (AI).
More and more companies are interested in AI, which has led to high demand for Palantir’s products and services. Through the first nine months of 2023, the company’s sales have already totaled $1.6 billion, growing at a rate of 16% year over year.
More importantly for value investors, during this period the company reported a profit of $120.5 million. This is a significant improvement over Palantir’s loss of $404.6 million over the same period in 2022.
The company is now profitable. Given that the company’s revenue growth still looks good, it may not be too late to invest in this growth stock.
While Palantir’s forward P/E of nearly 60 seems high, looking over the next five years, the stock’s price-to-earnings ratio (PEG) is around 1. This suggests that it is This is a good value buy for investors willing to hold on for the long term.
3. CRISPR therapeutics
The smallest stock on this list by market cap is CRISPR Therapeutics. Its market capitalization is just $5 billion but could become much larger in the future. CRISPR just approved its first product Casgevy, a gene therapy treatment for sickle cell disease, so its finances are expected to improve significantly in the coming years.
CRISPR will have to share Casgevy’s revenue with its development partner Vertex Pharmaceuticals. This treatment, however, will cost $2.2 million (CRISPR will get a 40% share of the profits), which should leave considerable room for the companies to part ways.
CRISPR stock trades at around $63 per share. Even though the company is not profitable and its revenue has not seen consistent growth in recent years, the future has never been brighter for the company. If you’re ready to buy and hold, this is another great stock to get your hands on right now.
Should you invest $1,000 in Palantir Technologies right now?
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Apple, CRISPR Therapeutics, Palantir Technologies, PayPal and Vertex Pharmaceuticals. The Motley Fool recommends the following options: December 2023 short bets at $67.50 on PayPal. The Motley Fool has a disclosure policy.
3 Obvious Growth Stocks to Buy for Under $100 was originally published by The Motley Fool