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5 Best Stocks to Buy if You Have $250 to Spend

  • Here are the five best stocks for $250.
  • AAPL: The world's leading consumer electronics company is a steal at $147 a share.
  • AMZN: The e-commerce company's recent 20-for-1 stock split has brought its share price down to $110.
  • F: At just $11 per share, and with a P/E ratio of less than 4, Ford's (F) stock is a screaming buy at current levels.
  • SBUX: The coffee retailer continues to produce strong financial results despite a difficult operating environment.
  • DIS: The Mouse House's stock is currently at its lowest level since September 2016 and looks to be oversold.
best stocks for $250 - 5 Best Stocks to Buy if You Have $250 to Spend

Source: Chompoo Suriyo / Shutterstock.com

Stocks are getting cheaper as the market selloff continues, with shares of many leading companies falling to distressed levels.

While U.S. markets posting their worst first half to any year since 1970 has been stressful, it has also presented an enormous opportunity for investors. With as little as $250, investors can now buy multiple shares of some of the best run and most dominant companies in the world – companies that have a long track record of delivering value to shareholders.

Six months ago, many of these stocks were out of reach to retail investors, with some costing thousands of dollars for a single share. But the current market carnage has significantly dropped the price of many stocks, enabling investors to get in on the cheap and ride the share prices to future returns when they recover and climb higher.

Here is a list of the five best stocks to buy now if you have as little as $250 to spend.

Ticker Company Recent Price
AAPL Apple $147.24
AMZN Amazon $110.00
F Ford Motor Co. $11.70
SBUX Starbucks $78.31
DIS Disney $94.91

Best Stocks for $250: Apple (AAPL)

Apple store. Apple Inc. (AAPL) sells consumer electronics, computer software, services and personal computers.
Source: Vytautas Kielaitis / Shutterstock.com

The stock of the world’s largest consumer electronics company looks like a bargain right now at $138 a share. Apple (NASDAQ:AAPL) stock was down 24% in 2022 and essentially flat over the past 12 months. The stock is also 33% lower than where analysts think it should be trading right now. Among 39 professionals who cover Apple, the median price target is currently $185 per share. The lowest price forecast on the stock is $145. By any measure, Apple stock is on sale right now amid the market downturn.

And Apple stock is on this list of stocks for $250 because it a great long-term addition to any portfolio. Despite the success the company continues to have with sales of consumer products such as the iPhone, Mac computer and Apple Watch, the Cupertino, California-based company rarely sits still and is constantly pushing into new areas. Most recently, Apple has been moving into streaming and finance, announcing its intention to get into the buy now, pay later space. Apple also buys back more of its own stock than any other public company and pays a quarterly dividend that yields about 23 cents a share.

Amazon (AMZN)

Logistics activity on the Amazon (AMZN) site of Vélizy-Villacoublay in France. Packages are sorted by workers on conveyors.
Source: Frederic Legrand - COMEO / Shutterstock.com

Speaking of heavily discounted stocks, how about e-commerce giant Amazon (NASDAQ:AMZN)? Following a recent 20-for-1 stock split, the Seattle-based company’s share price is currently at $110, its most affordable level since the 2008-09 financial crisis. With $250, an investor can now buy two shares of the iconic online retailer. Before the stock split in early June, an investor would have needed more than $2,000 to buy a single share of the company. AMZN stock has also been pushed lower this year by the market selloff, down 36% since the start of January.

Analysts seem to agree that the selloff in AMZN stock has been overdone. The 44 analysts who cover Amazon have a median price target on the shares of $175, which is 60% higher than current levels. While Amazon is struggling with supply chain bottlenecks, wage inflation, and higher interest rates that are starting to slow consumer spending, all of those issues are short-term and will be resolved in due course. The company recently announced that it plans to hold two Prime Day sales events this year, which should give its sales and stock a boost.

Ford (F)

Ford (F) logo badge on grill of car
Source: JuliusKielaitis / Shutterstock.com

An investor seeking stocks for $250 could buy 22 shares of the Ford Motor Company (NYSE:F) based on its recent price of $11.32. Down 48% this year, F stock looks like an absolute steal, especially with a price-to-earnings (P/E) ratio of only 3.98. Savvy investors can gain exposure to Ford just as the Detroit-based automaker’s electric vehicle strategy is executed. Despite global supply chain constraints and difficulties sourcing needed parts, Ford is delivering on electric versions of its most popular vehicles, including the F-150 pick-up truck and Mustang muscle car, giving market leader Tesla (NASDAQ:TSLA) a run for its money in the process.

Ford is fully committed to the electrification of its vehicle fleet, having allocated $30 billion to the creation and rollout of electric vehicles through 2025. The company has said that it wants half of all its sales to be electric vehicles by 2030. While Ford’s most recent quarterly results contained some red ink due to the company’s ill-fated investment in electric vehicle start-up Rivian (NASDAQ:RIVN), the underlying numbers were quite positive. Ford reported earnings per share (EPS) of 38 cents compared to 37 cents that Wall Street had expected. Revenue in the quarter came in at $32.1 billion, compared to $31.13 billion that was forecast. Long-term F stock will be just fine.

Starbucks (SBUX)

Starbucks (SBUX) coffee cup on a counter
Source: Natee Meepian / Shutterstock.com

Shares of Starbucks (NASDAQ:SBUX) haven’t been the same since Howard Schultz returned to helm the retail coffee chain and promptly eliminated a $20 billion share repurchase program, saying the money would be better spent reinvested in the company’s operations. Year to date, SBUX stock is down 32% and trading just below $80 a share. However, despite the anger incited by the stock buyback program being cut, Starbucks has continued to perform admirably in a very difficult operating environment. The company’s most recent financial results showed it earned 59 cents per share, which met Wall Street expectations. Revenues of $7.64 billion beat forecasts for $7.60 billion.

Coming out of the global pandemic, when many of its retail outlets were forced to close, Starbucks this year has been dealing with renewed Covid-19 lockdowns in China on the international front, and a push to unionize its stores in the U.S. on the home front. So far, nearly a dozen Starbucks outlets in American have voted to unionize. Another 180 coffee shops have filed the paperwork needed to hold a union vote. However, that is still a small percentage of the more than 9,000 stores Starbucks operates in the U.S. And if there’s anyone who can help to successfully steer Starbucks through the current period of volatility, it is Schultze, who ran the company on two previous occasions.

Disney (DIS)

Disney logo on a store front. DIS stock.
Source: chrisdorney / Shutterstock

The share price of the Walt Disney Co. (NYSE:DIS) has been absolutely clobbered this year, landing it on this list of best stocks for $250. DIS stock is down 40% year to date and was trading around $95 per share. The last time the stock was this low was in September 2016. Analysts are pounding the table and screaming that Disney stock is a buy at its current share price, especially with its theme parks now operating at full capacity for the first time since the pandemic began, and several of its movies racking up big grosses in theaters. While concerns persist that the growth at the Disney+ streaming service is slowing, those worries seem unfounded.

Disney reported in May that subscriptions to its Disney+ platform totaled 137.7 million during its fiscal second quarter, which beat Wall Street forecasts of 135 million subscribers. This showed that the company’s streaming platform continues to grow and add new members. Plus, revenue in Disney’s parks and experiences unit more than doubled to $6.7 billion during fiscal Q2 compared to a year ago when the pandemic was still impacting the company’s operations. As Covid-19 retreats further, Disney is likely to continue outperforming and it is likely only a matter of time before its stock also recovers.

Disclosure: On the date of publication, Joel Baglole held long positions in AAPL and DIS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


Article printed from InvestorPlace Media, https://investorplace.com/best-stocks-for-250/.

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