If making money from stocks is your goal, you need to get started sooner rather than later. It doesn’t take a lot of money to start your stock investment journey and while $100 isn’t a lot, it isn’t very little either. If you are investing through a no-commission broker, you can put all your $100 into the right stocks. There are several stocks under $100 to buy this month.
When looking for stocks, it helps to identify companies with a rich history, solid fundamentals, and expertise that sets them apart from their competitors. I’ve identified three standout stocks under $100 you could buy this month. All three companies have a strong industry presence, hold a solid market share, and have reported impressive first-quarter numbers. Let’s take a look at them.
Stocks Under $100 to Buy: Morgan Stanley (MS)
Investment bank Morgan Stanley (NYSE:MS) enjoys a diversified income and has reported an impressive first quarter. It saw a 16% year-over-year jump in the investment banking revenue and a 5% jump in the wealth management segment. The net revenue stood at $15.1 billion while the net income came in at $3.4 billion. The 14% jump in the profit was driven by the rise in the investment banking business.
Up 3% year to date, the stock is trading for $97 and has been in this range since the past month. It managed to hit $103 in May but has lost value over the past few weeks. I believe Morgan Stanley is in the recovery stage and an improvement in the economy will boost its business. Analysts are optimistic about the earnings growth of the company which could be driven by a rebound in deals in the IPO market.
Morgan Stanley is set to report results on July 16 and Zacks expects an EPS of $1.66, which could be a 33.87% jump while the revenue could see a 6% jump to hit $14.28 billion.
The stock also enjoys a dividend yield of 3.48% and if you are looking to grow your $100 into passive income, this is one stock that will keep rewarding you. Morgan Stanley is a long-term buy-and-hold financial stock.
Palantir Technologies (PLTR)
I’ve been pounding the table for Palantir Technologies (NYSE:PLTR). One of the best AI stocks to own right now, PLTR is up 55% YTD and 63% in the past 12 months. Trading at $25, the stock is set to hit a new 52-week high very soon. A tech giant, Palantir has been in the industry for two decades and is the government’s favorite service provider.
However, the company has diversified the business and is now growing the commercial segment as well. In the first-quarter results, Palantir reported a 69% YOY jump in commercial clients, and the commercial segment revenue soared 40% YOY. Its total revenue was up 21%.
The rising demand for AI software has driven Palantir’s revenue which owns an Artificial Intelligence Platform (AIP) that has become a big hit amongst companies. Palantir is cashing in on this opportunity and has seen a 38% jump in outstanding performance obligations to $1.3 billion in the first quarter.
Palantir has a healthy pipeline for revenue and considering the massive surge in the demand for AI, the company is set to benefit. Argus Research has a buy rating for the stock with a price target of $29. The analyst believes that Palantir has the potential to capitalize on the rising AI demand from the commercial segment.
Chewy (CHWY)
A promising growth stock, Chewy is set to make the most of the growing pet products market. The company is a retailer of pet food and pet products. Up 16% YTD, CHWY stock is exchanging hands for $25. It soared last month after reporting impressive first-quarter results. The company has seen a rise in e-commerce sales and its revenue stood at $2.88 billion. The EPS was 31 cents.
According to the National Pet Owners Survey, about 86.9 million families own a pet in the U.S. Additionally, more people consider their pets as family members now and are happy to spend money on their products. This has led to a steady rise in the demand for pet products.
Chewy has also announced a $500 million share buyback plan after positive first-quarter results. While it is hard for Chewy to achieve the pandemic highs it did in 2021, it is seeing an improvement in profitability. Pet adoptions surged during the pandemic and the stock hit new all-time highs. The business growth has slowed but there is a chance of a rebound in the pet industry.
The management is expecting a slowdown in growth in the second quarter from 2% to 3% while for the full year, it is aiming for a growth rate of 4% to 6%. As the pet sector strengthens, revenue growth could bounce back. Buying the stock in the dip is a smart move.
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.
