Investing in cheap stocks to buy for $100 can be incredibly efficient in building one’s long-term portfolio.
With unfavorable market conditions for traders, investors have multiple opportunities to pick up high-quality assets. Though investing in the current climate presents more risk than usual, the right research and a keen eye for cheap stocks to buy for $100 will enable investors to take advantage of the current bear market.
Despite the bear market casting a gloomy shadow, many stocks have been living up to the lofty expectations set by their excellent fundamentals.
While unfortunate losses of value have been seen on multiple stocks, the stocks covered in the article have been incredibly resilient. Whether it be an exceptionally strong balance sheet or a lucrative business model, these robust companies have exhibited an ability to thrive in difficult conditions.
Here are the best cheap stocks to buy for $100.
|BARK||The Original Bark Company||$1.50|
Automotive titan Ford (NYSE:F) stock is one of the few blue-chips trading under $20, making it one of the best cheap stocks to buy with $100. It trades at 0.4 times forward sales estimates, pointing to a healthy upside ahead.
Its bull-case hinges on its foray into the electric vehicle segment. It plans to increase production to 600,000 vehicles by late 2023 and hopes of producing two million EVs annually by 2026. This impressive growth of nearly 100% CAGR through 2026 should make it one of the top names in the burgeoning EV space.
Additionally, it boasts robust liquidity of over $49 billion, which the firm is using to secure its supply chain and make major investments in the U.S., Europe, and China. Hence, with its tremendous portfolio transformation, the future looks bright for Ford Motors.
AvePoint (NASDAQ:AVPT) is an example of a software-as-a-service business leading the way through innovation.
It’s gained strong traction in the tech space with its comprehensive range of data management, protection and migration services to help businesses maximize their use of Microsoft Office 365. AvePoint’s agile technology solutions facilitate the ease of use of Microsoft’s product suite.
Microsoft and AvePoint have had a mutually beneficial relationship, as evidenced by strong financial performance from both companies in the recent past.
It’s clear that Microsoft has seen a significant benefit from outsourcing its services to AvePoint, resulting in a tremendous 100% net retention rate for the latter. Furthermore, Microsoft’s approach implies its confidence in AvePoint’s ability to expand its overall addressable market, demonstrating the value of the partnership going forward.
Gogo (NASDAQ:GOGO) is a leader in the provision of broadband connectivity services in the business aviation space.
Its systems are installed in thousands of aircraft, leading to remarkable financial performance stability. Its sales have grown roughly 17.3% in the past five years, while its EBITDA growth has averaged 24.2%. 2022 hasn’t been any different for its business financially, but its stock has been on a rollercoaster.
Its recently released third-quarter results showed a revenue bump of 11% to $105.3 million, while its operating income shot up to $36.3 million, an 18% increase from the prior-year period. That equates to a robust 34% operating margin. The firm expects its free cash flows to grow to $200 billion by 2025, a 264% increase at the midpoint of its guidance this year.
In the past few years, Nokia (NYSE:NOK) has made a remarkable transformation, transitioning from a struggling smartphone maker to a world-leading telecommunications leader.
The company’s execution of strategic plans has reaped dividends over the years, with substantial top-line expansion across its core business segments. In particular, its network infrastructure and cloud segments have bucked broader sector trends by recording exceptional growth in recent quarters.
This remarkable success is largely attributed to Nokia’s unwavering focus on innovation, firmly placing the business at the forefront of the 5G race.
The firm had another strong showing in its third quarter, with its sales rising by 16% from the prior-year period. Moreover, it has also guided for an impressive 19% earnings growth. This success isn’t by chance, as it was the eighth consecutive quarter where Nokia surpassed analyst estimates.
The company’s strategy of diversifying its customer base is bearing fruit, particularly in its enterprise segment, where revenues have more than doubled year on year since 2018. These numbers point to an amazingly positive outlook for this leading technology provider.
Nio (NYSE:NIO) has the potential to reach great heights, yet if you simply focus on its current performance, it might not be as encouraging. The unfortunate repercussions of the lockdowns and government regulations have left the company in a phase of weakness at present.
The Chinese EV giant reported marvelous numbers for the past month, reporting a 41% increase to 14,178 vehicles from the previous month.
Though it’s not posting the record numbers it once was, I expect it to turn things up a few notches once the economic environment improves. Moreover, Nio has an edge over its competition due to its international expansion efforts. It already has an incredible presence across Europe while investing in new technologies, such as its innovative battery-swapping program.
The Original Bark Company (BARK)
The Original Bark Company (NYSE:BARK) is one of the hottest up-and-coming pet businesses, and it’s no surprise why.
Its direct-to-consumer subscription boxes are a proven winner, with owners continuously returning for its popular branded product line. Impressive management has already shown exponential growth, with existing operations cutting costs by consistent quarterly margins.
With these corporate funds being put to smart use and a top-notch customer service team in place, The Original Bark Company is on track to grow by healthy margins each quarter.
Its subscription business is generating stellar fundamentals, while its customer acquisition costs has slowed down substantially. Furthermore, it operates in a stable sector which suggests that it won’t have much trouble operating in the current economic climate. Moreover, cross-selling opportunities with its existing and new products will significantly expand its revenue base going forward.
Ambev (NYSE:ABEV) has been slightly sluggish in its attempt to regain momentum due to pandemic-induced headwinds, but its recent results have shown a significant rebound.
It has remained resilient and has posted encouraging results over the last few months. This is in spite of the up-and-down nature of the Brazilian market. With the FIFA World Cup in full swing, this has created great excitement around Ambev’s assortment of brands and should help to fuel robust sales growth in the upcoming quarters.
Its business has been profitable overall, with an impressive margin profile generating a 20% net income margin over the past five years. Given the strength in the Brazilian beer market, I expect Ambev to steer through any future challenges ahead with success effectively.
On the date of publication, Muslim Farooque did not have (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