The economy is showing strong signs of improvement as we get into the holiday mood. Investment choices are many, but investors with a limited amount need to conduct thorough research. Diversification is the key if you are a beginner and starting with $1,000. This is one of the keys when thinking about the best ways to invest.

Investing in stocks across multiple sectors will help generate passive income while also enjoying capital gains. Here are the seven best ways you can invest now. 

Johnson & Johnson (JNJ)

After spinning off the consumer healthcare products segment, Johnson & Johnson (NYSE:JNJ) looks like a completely new company. I was certain that JNJ would improve its numbers once the consumer healthcare segment is separated and the company did not disappoint.

It beat expectations and raised the full-year sales forecast to $83.6 billion to $84 billion, up $200 million from the previous outlook. The management also expects the EPS in the range of $10.07 to $10.13.

One solid reason to invest your $1,000 in the stock is the growth of the med tech segment. The company is an industry leader, a dividend aristocrat, and one that is known for innovation and research. Its med-tech sales increased 10% year over year to hit $7.5 billion and I believe this segment will continue growing.

The sales of its innovative medicine segment were also up 5.1% year over year and hit $13.9 billion. Exchanging hands at $154 today, the stock is trading at a discount and worth a buy. 

PepsiCo (PEP)

PepsiCo (NASDAQ:PEP) is a well-known name in the industry and is a growth business. The company has a diversified business which keeps it stable during market ups and downs. It has enjoyed solid sales growth and is expanding its line of snacks. 

One big reason to bet on this stock is its long history and the ability to thrive in any situation. Despite this, PEP stock has seen a slight dip and is down 6% year to date, trading at $168 today but this is temporary. With the upcoming holiday season and an improvement in consumer sentiment, we could see a positive shift.

The company saw a 6.7% year-over-year increase in revenue which reached $23.45 billion and the EPS came in at $2.25 per share. Most importantly, PepsiCo is a dividend stock and enjoys a yield of 3.01%. It has had an 8% annual dividend growth since 2010. This will ensure you enjoy passive income while your $1,000 investment grows over the years. 

SoFi Technologies (SOFI)

One of the best ways to invest before the end of this year is in the fintech stock SoFi Technologies (NASDAQ:SOFI). With the resumption of student loan payments and an increase in personal loans, SoFi is back at its game.

The company recently announced that it has exited the cryptocurrency business and I believe it is a good move. It wants to focus more on lending and this is where it will be able to make big money. 

While SoFi hasn’t reported a profit yet, there is a high possibility of it turning profitable in 2024. It has reported a revenue of $537 million in the recent quarter, which is up 27% year over year, and also managed to add 717,000 members in the quarter.

We will see a stronger business with the resumption of student loan payments because there will be a need for refinancing and SoFi will attract new consumers. Buy the stock while it is trading below $10, at $7.29 today.  

Tesla (TSLA)

When it comes to investing $1,000 in the stock market, Tesla (NASDAQ:TSLA) comes to mind. The company is a leader in the EV space and has already rewarded investors over the years.

We have seen TSLA stock soar to new highs and while it is down today, I believe it has the potential to bounce back very soon. One big reason Tesla is in the news today is the launch of the Cybertruck. 

Yes, its delivery numbers are dropping, and it had to resort to price cuts during high inflationary periods but the company remains in the best position. It is known for innovation and technology, and this is where it sets itself apart from other EV makers.

Tesla also has a massive electric charging network that will generate revenue for it in the coming years. Exchanging hands at $239 today, the stock is up 121% year to date. It is one of the best ways to invest your $1,000.

Amazon (AMZN)

The global giant Amazon (NASDAQ:AMZN) has become a household name today. Amazon is set to gain with Prime Day, Black Friday, and the upcoming holiday season. The stock is already up 79% year to date and is very close to the 52-week high of $149. One of the best ways to invest $1,000 is in Amazon.

It has a wide product offering which includes streaming, cloud as well and a range of products. It is investing heavily in Artificial Intelligence and has also been using it for many years. It invested in Anthropic, which is an AI startup to develop AI models. 

I believe AMZN stock is a long-term play, and it will not disappoint for years to come. As retail spending improves, we could see Amazon report impressive numbers, it will also continue to benefit from Amazon Web Services which remains a top contributor to the revenue. This stock is a buy-and-hold for the next five years as Amazon remains at the top of the industry. 

Taiwan Semiconductor Manufacturing (TSM)

If you think Nvidia (NASDAQ:NVDA), is too expensive, it is time to consider investing in Taiwan Semiconductor Manufacturing, a.k.a. TSMC (NYSE:TSM). It is the chip supplier for Apple (NASDAQ:AAPL), Nvidia, and several others which shows how prominent it is in the AI industry. It is hard to imagine the success of the big tech stalwarts without TSM.

The company did see a slowdown this year but I think it is primed for success in the coming year. Up 31% year to date, TSMC stock is exchanging hands for $97 today and is an ideal investment while it is below $100. 

One solid reason to buy the stock is the anticipated rise in the demand for semiconductors. Currently, Taiwan Semiconductor holds over 50% of the global market and there is ample scope for expansion. It plans to build a fabricator in Germany worth $11 billion to meet the rising demand. Considering the growth potential of the company, the stock looks undervalued right now. 

Palantir Technologies (PLTR)

Having put up exceptional performance this year, Palantir Technologies (NYSE:PLTR) is a great stock for your portfolio. While the stock is down 50% from its all-time highs, it is up 213% year to date and exchanging hands at $20.

The company is using AI to cater to commercial and government clients, and its fiscal performance improvements are worth noting. Palantir saw a 17% year-over-year increase in revenue and a whopping 34% jump in customer count year over year in the third quarter. 

Palantir is an early user of AI and is already enjoying the rewards. The high demand for its products and services is proof that it is leading the way. It has also seen a rise in the operating income each quarter this year, and I believe this momentum will continue throughout 2024. PLTR stock is the one to buy and hold. It will certainly reward patient investors.  This makes it one of those best ways to invest $1,000.

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.