Best Stocks Under $100
What Are The Top Stock Picks Under $100
Looking to invest in the best stocks under $100? Then take a look as we have picked five ‘Hot Stocks’ that are shining under a price tag of $100.
Best Stock Movers Under $100
If you are a beginner investor who is under the impression that you have to be super wealthy in order to invest in stocks, then think again as this is far from the truth. In fact, there are plenty of stocks sitting at affordable prices under $100 that have performed brilliantly over 2020 and who look to have strong growth potential ahead.
If you are looking to start an exciting adventure into buying stocks or perhaps if you are on the lookout for a few additional stocks under $100 available on the market today, then take a look as we are happy to share our top stock picks that all investors should consider this year.
Alongside our chosen five stocks under $100, we are also sharing with you some much needed guidance when looking into how to choose such stocks including looking at stock features, all the way to learning how to begin your investing journey.
- List of 5 Stocks to Buy Under $100:
- Overview: Stocks Under $100
- Definition Of A Stock
- Features To Look For In Stocks Under $100
- Five Best Stocks Under $100
- Beginning Your Way Into Investing
- Best Online Brokers For Stocks Under $100
- eToro - Best Online Broker for Stocks under $100
List of 5 Stocks to Buy Under $100:
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Overview: Stocks Under $100
When it comes to investing in stocks it’s wise to know that there are hundreds of stocks on the market that investors can look to invest in that don’t all come with high price tags. Likewise, not every stock on the market is a multi-million dollar company like Amazon Inc (AMZN) or Microsoft Corp (MSFT), as every stock has to start at the bottom in order to rise to the top.
Realistically, mid and large-cap stocks will typically hold a share price of over $100. But the good news here is that there are plenty of affordable and high growth potential stocks under that price that have great potential in order to offer good value to investors.
Definition Of A Stock
Simply, a stock is a security that represents a fraction of ownership into an organisation. The way investors will see returns is from a company’s profits and assets as they will equal to how many shares an investor has within a certain organisation.
One of the main reasons why company’s offer shares of stock is so they can raise capital in order to fund further growth with future ventures. This could then lead to broadening the stocks horizons by giving a stock further exposure into new sectors whilst they also look to reduce and pay off accumulated debt.
How do you receive returns from investments you may ask? Here are the two ways investors can look to seek returns from stock investments:
- Invest in dividend stocks. A dividend is a share of a company’s earnings that is paid to its shareholders in the form of a dividend in exchange for holding stock. This form of investment provides investors with a passive income stream as dividends are typically paid quarterly or annually to investors. But it's wise to know that not every company offers dividends payouts to its shareholders, although dividend stocks are strongly encouraged as they have been confirmed that they can outperform growth stocks, especially in a bear market.
- Benefitting from stocks’ long-term increase in value. The most common way that investors look to receive returns from a stock is by buying shares of a stock and holding them for the long-term as they look to add value overtime. On the flip side, there are no guarantees that a stock will increase in value as they can also decrease overtime, but historically the average annual return from a stock is around 10%. Or take the leading S&P 500 Index as an example for the long-term outlook as the index has returned 14.85% over the past five years. But investors can look to lose around 3% of value each year due to inflation.
These two types of ways are strongly advised for investors to have a mixed collection of both within their portfolio for reasons such as reduced risks and creates stronger diversity. Additionally, investors can look to buy and sell stocks through day trading or for a shorter period, just like there is the option for investors to buy and hold shares in a stock for a long period, in many cases over 10 years plus.
Read Also: 9 Small-Cap Stocks With Growth Potential
Features To Look For In Stocks Under $100
Whilst many beginner investors will look at a stocks share price to determine if a company is worth investing in, in the bigger picture as investors understand and gain experience in the stock market investors will come to realise that a stocks share price is not actually that important.
For example, an investor could look to buy 5 shares at $20 of a stock or they could to buy one share at $100, either way you have still invested the same amount so neither means that you have nor will gain greater returns.
But two key factors that do matter is that one, you are exposing yourself to greater risk if you are only looking to solely invest $100 by placing it into just one investment And the second main point that matters is the difference between what you buy a stock for to the price in which you sell it at.
This is the ultimate factor as you will either benefit if a stock rises or you can potentially lose money if a stock takes a decline.
Besides these factors, there are further key characteristics to look at when looking to pull out the best stand out stocks under $100. Let's take a look at what they entail:
Good growth trends
One of the first points that all investors should look at when looking into any stock is looking at a stocks growth prospects. This can be seen by taking a look at stocks quarterly and annual full-year reports over the years as to what profits and earnings that company has made, as it's company profits that are going to make your money grow.
A stock doesn't necessarily have to make a huge jump in growth, so long as small profit improvements are visible. This confirms that the stock is attracting strong consumer demand in some shape or form which is the making for continued success.
A good example of a growth stock in 2020 was Zoom Video Communications Inc (ZM). ZM benefited hugely from the COVID-19 pandemic and witnessed its revenue quadruple to $2.65 billion with the stocks Q4 revenue hitting $882.5 million, outbeating the whole financial year in 2020. The stock now sits at $331.25, more than doubling from where the stock was sitting in April 2020.
Look into a stocks dividend history
As all companies are not obliged to pay dividend payouts to shareholders, for the stocks that do provide this passive income stream this is one characteristic to look into.
Just like looking into a stock’s earnings via quarterly or annual reports, you can also obtain and see how much has been paid out in dividends with its actual amount being paid it’s shareholders and also in the form of a dividend yield.
This can be a sign that a stock is sitting in good financial health. Typically a good dividend yield is between the range of 4-6% in order to gain reasonable income, as the lower the dividend yield the less returns the stock is in receipt of leading to lower investor interest.
A strong point to look out for if a company has a high dividend yield, especially above 10%, this could be for the wrong reasons such as a stock being in financial difficulty.
These companies will look to increase their dividend yield in order to attract investor attention but when it comes to paying dividends, they may not have the financial capabilities in order to deliver to its shareholders.
This is why it pays to conduct thorough research before you look to invest, as if a stock is looking to cut its dividends or unable to pay completely you could be left out of pocket significantly.
Look at a stocks’ assets vs liabilities
When it comes to debt, most or if not all companies will carry some form of debt that they need to pay off, especially as they grow into huge billion-dollar companies.
On this note reviewing stocks debt-to-equity ratio (D/E) is strongly advised when looking to invest in any stock, but keep in mind that some industries naturally carry a high amount of debt that is not deemed to be a strong risk as these industries need it to be able to operate.
Take the aviation industry as an example with United Airlines Holdings Inc (UAL) as this stock holds a D/E ratio of 10.84 currently. Alongside, take a look at a stocks debt-to-income ratio (DTI), as this will give you a clearer idea of how much money you will be looking to receive.
To calculate a company’s debt-to-income you have to divide a company’s total debt by the total amount of gross income or shareholders equity.
Look to invest in the future
One of the last key features when looking into a stock under $100 is to look at the company’s outlook for the future.
The way of looking into a company’s potential future is by also factoring and looking into how well the organization has performed in the past to see if the long-term image is looking possible, as well as looking at the current global demands.
By taking a look at a company’s balance sheet both recent and over the years this should give you confirmation if the stock has the potential in order to grow earnings in the long term.
Key reminder - The stock market can be a volatile place to invest and stocks can decrease in value as much as they can gain in value, it all comes down to investing smartly in order to keep in the green.
Check Out: 5 Factors Influencing the Stock Market
Five Best Stocks Under $100
Now we have breakdown what is involved within a stock and standout features to look out for in stocks under $100. Now let’s take a look at our chosen five top-performing stocks that are sitting on the market under $100 that are looking to be great buys right now.
1. Pinterest Inc (PINS)
Share Price: $66.33
The social media platform Pinterest Inc (PINS) has had an impressive run in 2020 gaining over 250% and continuing in 2021.
The social media platform offers its unique ways of social interaction in the form of using images, videos, pinboards and more, along with users having the facility to buy products of choice. PINS is proving to be the go-to site for many creative individuals globally.
Within 2020 the stock witnessed its revenue rise by 48% to $1,693 million and the stock delivered a fantastic Q4 revenue of $706 million, a whopping 76% increase year-over-year.
Moving to recent times the stock has released its Q1 2021 results confirming that PINS is still proving to be a strong growth stock that is trading below where some analysts are predicting it should be.
Q1 revenue grew by 78% YoY to $485 million off the back of strong advertising momentum, whilst global monthly active users (MAUs) grew by 30% to 478 million. The stock also came out with quarterly earnings $0.11 per share, outbeating estimates of $0.07 per share. This makes it the fourth consecutive time that PINS stock has outbeat its predictions.
Pinterest sits in a relatively respectful financial position with just above $240 million in operating free cash flow, that looks to cover the stocks outstanding debt of $129.56 million. This gives the stock a 0.16 debt-to-equity ratio.
The company is looking to continue its growth through Q2 2021 as management has given a revenue guidance of 105% growth YoY. But as global restrictions ease the stock has stated that active monthly users will more than likely remain flat as individuals take part in other engagements.
Nevertheless, Wall Street analysts are being bullish on the stock giving PINS a potential price target upside of 50.76% to $100 from where it sits today at $66.33, with the stock adding just under 7% in value over the past month.
2. eBay Inc (EBAY)
Share Price: $62.33
The American e-commerce corporation eBay Inc (EBAY) is a name that many are familiar with and should continue to be familiar with as the stock is still performing brilliantly by pulling in good returns.
One start off point to mention is that eBay is a dividend payer and holds a dividend yield of 1.16%, which paid a modest $122 million in cash paid dividends to its shareholders within Q1, resulting in a cash dividend of $0.18 per share. Alongside, the stock delivered quarter earnings of $1.09 per share within Q1 returning $414 million to shareholders, outperforming both the stocks estimated EPS target of $1.07 and 2019 earnings within the same period YoY of $0.77.
This is the fourth consecutive time that EBAY stock has beat its consensus EPS target over the fourth-quarter period. EBAY also posted a revenue increase of $3.0 billion, a rise of 42% YoY within Q1.
Looking ahead the stock has estimated earnings of between $0.67 to $0.72 per share in Q2, slightly below analysts forecast of $0.81 per share. Along with the eBay expecting revenue to be between $2.98 billion to $3.03 billion, relatively flat from Q1.
The stock is aiming to keep its focus on its Tech-Led reimagination in 2021 and the strategy is proving to be working when looking at the results the company is pulling in. Sneakers grew at a double-digit rate YoY, the growth in luxury watches grew to 38% in Q1 and Trading Cards was a solid focus for the company with gross merchandise value for Trading Cards being above $1 billion.
This stock is outperforming the market so far in 2021 and is trading almost 23% above where the stock was sitting in April 2020. Based on these results it looks clear that there is more success coming for the company over the coming year.
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3. Cheesecake Factory Inc (CAKE)
Share Price: $59.02
The American restaurant company Cheesecake Factory Inc (CAKE), which is famously known globally for its popular cheesecake creations, is up by 59% within its shares since the start of 2021.
Due to the challenges over the past year, CAKE stock has had to limit and seize normal restaurant operations but it looks like the tables are turning as the world is slowly opening up. The company confirmed that 206 cheesecake factory locations are now operating and resumed indoor dining at 60% limited capacity as from the report date, with sales at The Cheesecake Factory restaurants increasing by 2.8% YoY in Q1.
The restaurant company posted revenue of $627.4 million in Q1, beating analysts expectations of $597.7 million. Alongside, the stocks net loss available to common shareholders and diluted net loss per common share of $1.2 million and -$0.03 respectively in Q1 2021, with non-GAAP EPS of $0.20 per share, beating analysts estimates of a loss of $0.15 per share.
This stock may have been on the back foot over 2020 brought on heavily due to the pandemic but CAKE is looking to be on the front foot looking ahead in 2021 as the world slowly starts to reopen. The stock's shares jumped 8% after its Q1 release and is currently sitting at $64.50, more than double from its price of $24.36 YoY.
Due to a significant increase in sales in March, CAKE stock has gained a consensus ‘Hold’ rating with a price target of $64.00 given by Wedbush's analyst Nick Setyan, showing a potential upside of 8.44%.
4. Upwork Inc (UPWK)
Share Price: $47.04
The American freelancing platform that seeks to connect companies to freelancers worldwide, Upwork Inc (UPWK) has been pushed to new highs in 2020 off the back of the pandemic, and is looking like the company could sustain its growth momentum in 2021.
UPWK holds a market capitalisation of $6.4 billion and currently trades at $47.04, 5x higher from where it sat at $9.03 in the same period YoY.
In 2020 the company’s revenue grew by 24% year-over-year to $373.6 million, the highest growth since the company traded publicly. Marketplace revenue grew by 26% over the year to $338.2 million and gross margin moved one point annually to 72% for full-year 2020.
UPWK produced net income of $0.9 million or $0.01 per share beating expectations, with non-GAAP net income of $6.1 million or $0.05 per share in 2020, compared to $5.5 million in 2019. Lastly, the stock reached adjusted EBITDA of $14.0 million compared to $7.4 million in 2019.
This collection of great news came as more individuals across the global sought after freelance work due to the impact from COVID-19 over 2020, leading the world’s leading marketplace to dominate over the year with potentially more success to come.
In light of the stock releasing its next quarterly results on May 4th, analysts are predicting that UPWK could see an average return of 47.5% with quarterly sales reaching $108.53 million in its current period and full-year sales to reach $467.45 million at the end of 2021. Upwork expects revenue to increase between 23%-25% in 2021, adding to its growth plans of achieving 20% revenue growth in the long term.
On the back of the stock hitting tremendous groundwork in 2020 including GSV (gross services volume) reaching $2.5 billion an increase of 21%, there’s no doubt the pandemic has benefited this stock. As more individuals adapt to a freelance remote working lifestyle this stock will continue to be the go-to for freelancers across the globe in 2021.
5. Crocs Inc (CROX)
Share Price: $99.70
The world-renowned footwear brand Crocs Inc (CROX) is one stock in demand sitting under $100 on the market.
Over the year the stock grew revenues significantly to $460.1 million, up by 64% from $281.2 million in 2019, beating analysts expectations. The company’s digital sales surged by a whopping 75.3% representing 32.3% of the company’s total revenue, direct-to-consumer sales from stores or websites grew by 93% to $190.1 million and lastly the company's wholesale revenues were up 50.1% YoY to $290 million.
In Q1 the company’s net income grew to $98.4 million or $1.47 per share compared to $11.1 million or $0.16 per share in 2019, beating analysts expectations of $0.89 per share within the first quarter.
In light of the company’s epic performance over the year and leading on, CROX has increased its sales outlook for 2021 as the company now looks for sales to grow by 60% to 70% YoY within Q2, with analysts forecasting a growth rate of 40%. Within the full-year outlook, CROX is now looking to achieve a sales growth of between 40% to 50% especially as the company is witnessing strong consumer demand in Asia, one of the biggest long-term opportunities for CROX stock as Asia holds the title of being the second-largest footwear market in the world.
Over the past year, CROX stock has been one of the best-performing retailers in the world and looks set to remain with shares jumping over 17% from Monday 26th April at $84.80 to where the stock sits today at $99.70.
With analyst rating the stock a ‘Strong Buy’ and with a potential upside of 42% with a price target of $140 given by one Wall Street analyst, makes this stock a potential no brainer stock that is looking to deliver more solid returns throughout 2021 and beyond.
Beginning Your Way Into Investing
And there you have it, five fabulous stocks that are sitting perky on the market at attractive prices all under $100, whilst having solid growth potential and look to provide good value. This leads to confirmation that you do not have to be a millionaire in order to invest in stocks.
Another option for investors to consider is the option of looking to invest in fractional shares. Fractional shares are a portion of a stock that is less than a share. These shares can make your investing journey even more affordable whilst you can look to invest in some of the world's biggest companies on the market today for as little as $0.01.
Once you have decided if investing in stocks is right for you and you have picked out your chosen stocks of interest, then it's time to turn the tables into looking to choose the right broker or online platform that is most suited to your investing needs.
Read Also: Best Stocks to Buy Under $20
Best Online Brokers For Stocks Under $100
When you have all of your information you require to hand, the final step is to look at getting a stockbroker that will enable you to buy and sell shares.
Within modern society obtaining a broker through an online platform is one of the simplest, easiest and most popular routes for investors to take. Once you have chosen your platform of choice and have a broker on hand you are then able to begin investing, with some platforms even offering investors zero commission fees when placing their chosen investments.
Choosing the right broker is crucial when starting out your journey into investing, which is why it is worth spending some time looking at some key features when looking to open a brokerage account. These include:
A platform is more than just a broker
The first point to remember is that when you have chosen a broker then take a moment before you take the leap to open an account to look at the platform that the broker is providing to you in order to buy and sell your shares.
This is an essential part for many reasons as you may find that the platform is not straightforward to use or that it does not offer any additional guidance if you are a beginner investor.
If you are a beginner investor you may wish to seek out the best trading platforms that are designed to cater for beginner’s needs that way you gain the most out of both broker and platform.
Check broker account fees.
Fees and commissions have to be one of the main aspects that investors look for when looking to choose a broker or the right platform.
Although not all brokers charge fees, that doesn’t mean to say that other brokers will give you their full service for no cost at all as there may be management fees or commissions fees when placing your investments. Before you open an account make sure you have full knowledge on all fees by checking the brokers price list.
On a similar scale, it is wise to check to see what a broker's minimum investment is upon opening a trading account. Again, some brokers may not charge fees to open an account but they may hold a minimum investment that you can invest with.
Exposure to various markets
Depending on what your investing goals are it's wise to keep in mind that most brokers will have access to most or if not all international markets including the U.S market.
But you may come across certain brokers that may not, so again it's worth sounding out and finding out before you look to commit yourself. Aside from various markets it's wise to consider if it is just stocks that are of interest to you.
This is due to having many investing options that investors can look to invest in that can be provided by various platforms such as Forex, Cryptocurrency and many more. So if this is a factor for you choosing a broker that has access to all these markets is where you should be looking to open an account.
With all being said you are officially ready to be on your way to establish your investing endeavours.
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