Finding the right stocks for investment can be a tricky game. While there are thousands of stocks to choose from, only a few can pass the test of time. Whether you have a solid portfolio or are only getting started, keep a few promising growth stocks on your radar. Don’t wait to accumulate thousands of dollars before you start your investment journey. It is possible to begin with cheap stocks under $50.
The following highly reliable companies have strong fundamentals, impressive business structures and the potential to move higher. These three companies already hold a strong position in the industry and could help grow your money.
SoFi Technologies (SOFI)
Fintech company SoFi Technologies (NASDAQ:SOFI) crushed the second-quarter results. And, it’s been on a roll since the beginning of the year. However, the successful results aren’t reflected in the stock price. At $6.65, SOFI stock has lost over 30% of its value year-to-date (YTD).
SoFi Technologies has successfully transitioned from being a student lender to an all-service financial company. In the second quarter, it saw a 41% year-over-year (YOY) jump in the customer base to reach eight million. Its financial services segment revenue jumped 80% YOY to $176.1 million while the lending segment generated a revenue of $340.7 million, up 3% YOY. Management aims for a revenue growth of 17.6% through 2026.
For Q3, the company is shooting for a revenue of $625 to $645 million, and for the full year revenue at $2.42 to $2.46 billion. SoFi Technologies has reached a point where investors need not worry about the quarterly numbers or member growth.
Trading below $10, SOFI can cater to the changing needs of consumers and has set itself apart by building a platform that appeals to the younger generation. Despite reporting impressive numbers for the past three quarters, the stock hasn’t been able to hit double digits. However, it may not trade this cheap in the coming months. So, buy while you can.
Palantir Technologies (PLTR)
A top artificial intelligence (AI) stock, Palantir Technologies (NYSE:PLTR) has become a hot property lately. With the rising investments in AI and the growing demand for AI chips and applications, PLTR impresses investors with strong fundamentals.
The company developed an AI platform which has attracted many commercial clients. Known for catering to government clientele earlier, Palantir Technologies is now a heavily diversified business. It saw a 42% YOY jump in the total customer base for the first quarter and the U.S. commercial customer base grew by 69%.
Shares are up 49% YTD and trading for $24. PLTR stock has tripled over the past five years with steady investments in technology and solid fundamental growth. Its diversified business will help report high revenue numbers in the coming months. Also, first-quarter outstanding obligations grew 74% YOY, which will be converted to revenue in the coming quarters. The company is aiming for revenue in the range of $649 to $653 million.
The market thinks PLTR stock is overpriced, but I believe it is trading at an appropriate value. With strong growth numbers and an improvement in fundamentals, the stock could hit $30 in the coming months.
AI is the driving force behind Palantir’s success, so consider buying while it trades below $50. The company is on fire and could continue the momentum.
Pfizer (PFE)
Biotech company Pfizer (NYSE:PFE) has successfully managed to pivot from the drop in Covid-19 vaccination sales. The company is back in the spotlight after Q2 results, and the management has raised the full-year outlook.
All biotech companies that invested in Covid-19 vaccines have seen a dip in sales. However, Pfizer made the most of the opportunity and used the cash generated from vaccine sales towards acquisitions. This has fueled the company’s financial growth while offsetting the drop in vaccine demand.
Exchanging hands for $29.74, Pfizer stock is up 14% in the past six months and has jumped 8% in the past month. The company recently reported results and ended the second quarter with a revenue of $13.28 billion and an EPS of 60 cents.
While the revenue is only up 2% YOY, the cost-cutting measures where it aims to save $4 billion by the end of this year are already paying off. Also, it is working on cancer treatment after the acquisition of Seagen in 2023. Seagen’s approved cancer products will continue to bring higher revenue for the company.
Now, the management aims for an EPS of $2.45 to $2.65 for the year and a revenue in the range of $59.5 billion to $62.5 billion. Also, Pfizer is a dividend-paying stock with a yield of 5.52%, which could be attractive for passive income investors.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
