3 No-Brainer Stocks to Buy Right Now for Less Than $100
Although fractional shares are becoming more widespread, not all brokerages offer them. This causes investors to pay attention to share prices for the stocks they invest in, especially when they're just starting out.
So, if you're looking for stocks under $100 per share, I've got three that look like great buys right now.
PayPal
PayPal (NASDAQ: PYPL) is in the midst of a turnaround. The stock has been steadily marching down since its 2021 highs, but things are starting to look up for the payment processing giant.
In the second quarter, revenue rose 8% to $7.9 billion or 9% on a currency-neutral (FXN) basis. While that's not breathtaking growth, it did exceed management's guidance of FXN growth of 6.5% to 7%. It similarly exceeded earnings-per-share (EPS) expectations, delivering EPS of $1.08 (17% year-over-year growth) versus the projected $0.83 (which would have been a decline from last year).
Those are solid beats, and sustained 17% earnings growth is enough to propel PayPal to become a market-beating stock over the long term. Additionally, PayPal's stock remains dirt cheap despite a bump after earnings.
PYPL PE Ratio data by YCharts
The PayPal turnaround is just beginning under the leadership of new CEO Alex Chriss, and now remains an excellent time to load up on shares.
UiPath
Speaking of turnarounds, UiPath (NYSE: PATH) is also in the beginning stages of one. UiPath provides its clients with robotic process automation (RPA) software, which is projected to be a massive growth industry in the next few years. However, due to some sales misses from poor execution, UiPath missed on first-quarter revenue targets and cut full-year guidance. Furthermore, its CEO resigned, and the founder (who led as a co-CEO until January of this year) will return to the position.
This turmoil has caused the stock to drop by 50% this year. While some of this drop may have been warranted, the stock now trades at 5 times sales, which is dirt cheap for a software company.
While UiPath has some problems it needs to sort out, it still has plenty of growth left in the tank (it projects annual recurring revenue growth of 18% in Q2). Furthermore, the RPA movement is just starting, so a slip-up in the early innings doesn't spell doom for UiPath. I'm confident the company will turn it around, and with the stock as cheap as it is, it will make a great investment.
Procore
Finally, there's Procore (NYSE: PCOR), a construction management software company. Procore has delivered solid growth as a public company and is also steadily working toward profitability.
PCOR Operating Margin (Quarterly) data by YCharts
Construction is a massive market, and Procore has barely scratched the surface of what's available. According to its 2023 Investor Day presentation, the company has captured less than 2% of U.S. construction companies' business and less than 12% of total construction volume. Globally, it's even less at 1% of businesses and 2% of volume. That's a massive growth runway, and an investment in Procore could be massively profitable over time.
Unlike software stocks linked to artificial intelligence (AI), Procore's stock remains fairly priced at 10 times sales. With a massive runway, strong execution, and a fair price, Procore's stock is about as attractive as they come.
Should you invest $1,000 in PayPal right now?
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Keithen Drury has positions in PayPal, Procore Technologies, and UiPath. The Motley Fool has positions in and recommends PayPal, Procore Technologies, and UiPath. The Motley Fool recommends the following options: short September 2024 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.
