It no longer takes money to make money on Wall Street. Where the stock market was once the playground of the wealthy, barriers to entry have been stripped away over the years.
Today, it doesn’t even cost anything to buy or sell a stock. Although deep discount brokers made it very cheap to trade, it wasn’t until Robinhood (NASDAQ:HOOD) ushered in the era of no-cost “frictionless” transactions that it became essentially free to invest.
That is great news for small investors because it means every dollar you put into the stock market is working for you. It allows someone with just a little money, even $100, to begin building their retirement nest egg.
So long as you don’t need the money to pay bills or for emergencies you can get to work investing in your future. Below are three of the best stocks to buy with $100 today.
Lands End (LE)
Apparel stock Lands’ End (NASDAQ:LE) is the first company to buy if you have only a few dollars to spare. Although the retail sector is still facing headwinds, Lands’ End stock is performing well.
Despite seeing first-quarter sales fall almost 8% to $285.5 million, it was much better than the $270 million Wall Street anticipated. It also had losses of $64 million or 20 cents per share, a nickel less than analyst expectations. Although falling sales and ongoing losses don’t sound good, Lands’ End is a retailer in turnaround mode that is gaining traction from its efforts.
Gross merchandise value (GMV) rose by single-digit rates during the period compared to the year-ago period helping to lift gross profit dollars year-over-year. Revenue only fell in the quarter because its contract with Delta Air Lines (NYSE:DAL) ended, an event that was not unexpected. Absent that contract, Lands’ End revenue actually rose 1% year over year.
The stock began its turnaround last year and at $14 a share is up 52% over the past 12 months. With Wall Street forecasting that the retailer will generate 20% earnings growth for the next five years, Lands’ End stock is still a buy with $100.
Petco Health & Wellness (WOOF)
The long-term trends in the pet industry provide a strong tailwind behind Petco Health & Wellness (NASDAQ:WOOF) too. The American Pet Products Association says U.S. pet parents will spend $150.6 billion on their four-legged friends this year, up from the $147 billion they spent in 2023. The biggest percentage will be spent on food and treats, or some $64.4 billion, with another $38.3 billion going to veterinarian care and products.
Petco is one of the largest pet service operators in the country with over 1,500 pet care centers in the U.S., Mexico and Puerto Rico. It also offers a growing network of on-site veterinary hospitals, as well as numerous mobile veterinary clinics.
I picked Petco as a stock to make a U-turn last year, but was early in my call. That turnaround is now underway. Petco Health & Wellness stock has more than doubled from the lows it hit in April and is up 13% overall in 2024. Still, you can buy the stock for a deeply discounted at under $4 a share. As the humanization of pets will only keep growing, Petco will be one to buy with your $100 bill.
Bank of America (BAC)
Banking giant Bank of America (NYSE:BAC) is a rock-solid stock to add to your portfolio with a C-note. A favorite of billionaire investors including Warren Buffett and hedge fund operator Ken Griffin, BAC stock is thriving in this high interest rate environment.
A bank’s net interest income (NII) tends to grow when interest rates rise. Although Bank of America’s NII fell 3% to $14 billion in the first quarter, that was due to attracting more depositors. The regional banking crisis last year caused customers to flee smaller financial institutions in favor of larger, more stable ones. Bank of America was a beneficiary of depositor flight. Average deposit balances jumped by nearly $14 billion to nearly $2 trillion in the first quarter.
More importantly, Bank of America’s common equity Tier 1 ratio, or CET1, increased $2 billion to $197 billion. CET1, or common equity Tier 1 ratio, measures a bank’s capital to its assets. Higher is better. BAC’s CET1 ratio is 11.8%, 184 basis points above the regulatory minimum.
That’s just one of the many reasons Bank of America is one of the best stocks to buy with $100 today.
On the date of publication, Rich Duprey 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.
