Unlocking Opportunities in a Pricey Market
The S&P 500 has been on a tear, setting new records in 2024 and building on the impressive 24% gain in 2023. While many stocks have seen their prices surge ahead of their underlying fundamentals, savvy investors know that there are still hidden gems waiting to be discovered.
Smaller Stocks, Big Potential
While megacap growth stocks have driven much of the S&P 500’s growth, smaller stocks offer a more affordable entry point for investors. With just $100, you can tap into the potential of these three growth stocks, each trading at a price that’s more than fair.
Uber: A Dominant Force in Ride-Sharing
Uber’s massive scale and user base of over 161 million make it a formidable player in the ride-sharing market. Despite recent challenges, including an FTC investigation into its subscription service and the threat of autonomous vehicles, Uber’s strong growth and improving profitability make it an attractive buy. With a forward price-to-earnings multiple of 28 and an enterprise value-to-sales ratio of just 3.4, Uber looks like a good value at around $65 per share.
Etsy: A Marketplace for Unique Goods
Etsy, the online marketplace for unique goods, is undergoing a transition period focused on improving long-term growth in gross merchandise sales. While this has led to short-term pain, the company’s efforts to enhance the customer experience and promote unique goods are paying off. With a share price of $53, Etsy stock trades for 20 times analysts’ expectations for 2025 earnings, making it a good value for investors willing to take on some risk.
DraftKings: A Leader in Online Sports Betting
DraftKings is one of two dominant online sports betting and iGaming companies in North America, with a strong brand name and a data advantage over smaller competitors. As online gambling continues to grow in the US, DraftKings is well-positioned to take advantage of the trend. With a price of $38 per share, DraftKings stock has an enterprise value roughly 20 times management’s forecast for 2025 EBITDA, making it an attractive buy for investors seeking high earnings growth.
Don’t Miss Out on These Opportunities
These three growth stocks offer a chance to tap into the potential of smaller companies at an affordable price. With strong growth ahead of them, investors should be willing to pay the price for these stocks. Don’t miss out on the opportunity to invest in these hidden gems before it’s too late.
Leave a Reply