Got $5000? Buy and hold these 3 stocks that are hitting the market | personal financing
(Selina Marangian)
Market downturns like the one we’re going through in the middle of it can be very worrying for investors – especially those with less experience. More experienced investors are likely to remember how the market crashed in the past, only to recover and continue to reach new highs. They are also likely to remember that bear markets tend to present many great investment opportunities, when stocks of big companies are put up for sale.
Here are three examples – three strong companies with very promising futures and stocks whose cost has come down. See if anything interests you.
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1. Paypal
Cash may be the feature, but more and more people are conducting financial transactions digitally, and one of the leading companies in the field of “fintech” is PayPal (NASDAQ: PYPL). Just how big is the player? Well, keep in mind that its market capitalization was recently $85 billion – and that was after the stock price fell 76% from its 52-week high.
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PayPal had 426 million active commercial and consumer accounts as of the end of 2021, when it employed nearly 31,000 people. In 2021 it processed a total of $1.25 trillion In payments, an average of 40,000 transactions per minute. Even better, the company is more than just a PayPal payment platform; The company also owns the popular Venmo app, not to mention Zettle, Xoom, Hyperwallet, Honey, and Paidy, among others. PayPal noted in its 2022 annual report that “Today, more than 70% of large retailers in North America and Europe, including more than 80% of large retailers in the United States, accept PayPal or Venmo at checkout.”
In the first quarter, PayPal reported a 13% increase in total payment volume (15% on a currency-neutral basis), and an increase in net revenue by 7%. It added 2.4 net new active accounts in the quarter as well. He finished the quarter on a fairly good balance sheet as well, which included more than $15 billion in cash and cash equivalents and investments and about $9 billion in debt.
2. Broadcom
from Broadcom (NASDAQ: AVGO) It may not be a terribly familiar name to you, but it’s a massive chip maker, with a recent market capitalization close to $200 billion. It is also the product of numerous mergers and acquisitions with the likes of LSI, Broadcom Corporation, Brocade, CA Technologies and Symantec.
Broadcom is already a diversified chip manufacturer, with a range of offerings for the data center, networking, enterprise software, broadband, wireless, storage, and industrial markets, among others. Moreover, he is looking to expand into the world of hybrid cloud computing, which includes multiple cloud environments, both private and public, by acquiring a software specialist VMware – It is reported about more than 60 billion dollars.
Broadcom is also a solid dividend-paying stock, recently posting a gain of 3.3%. Even better, this return has been growing rapidly, averaging increases of 32% per year over the past five years. While many tech-oriented companies have seen their shares fall sharply, Broadcom’s stock has recently fallen only about 27% from its 52-week high — a relatively small drop. The company clearly has a lot to offer investors.
Amazon.com (NASDAQ: AMZN) Known to most people as an online marketplace – with a Prime membership service that offers video streaming, e-books, music, games, and more. The Amazon Web Services (AWS) cloud computing business is less well known but is growing rapidly — with AWS revenue increasing 37% year over year in the company’s first quarter, and making up 16% of total revenue, up from 13% a year earlier. Naturally, she has a lot going on, like her advertising activity. The startups include virtual health services Amazon Care, along with Project Kuiper – an initiative to increase access to global broadband via satellite. Amazon is also home to devices and services like Alexa, Echo, Fire TV, Fire tablet, Kindle, Ring, Eero, and more.
With its stock recently down 37% from its 52-week high, Amazon.com is more attractive than it has been in recent years. A recent price-to-earnings (P/E) ratio of 59 may seem a little extreme, but it’s just under half the five-year stock average of 120. If you ever wanted to be a part-owner of Amazon, this is a promising opportunity.
These are just three strong companies with significant growth potential – each selling at a much lower price than they have in a while. Take a closer look at any of them and consider them for your portfolio – or go research for yourself, as there are plenty of other great growth stocks with attractive prices. Whether you have $5,000, $500 or $50,000 to spend, there are plenty of great investment opportunities.
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John Mackie, CEO of Whole Foods Market, an Amazon company, is a member of The Motley Fool’s Board of Directors. Selena Marangian has positions at Amazon and PayPal Holdings. Motley Fool has and recommends positions at Amazon and PayPal Holdings. The Motley Fool recommends Broadcom and VMware. Motley Fool has a disclosure policy.
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