One
of the great things about investing is that there are attractive stocks to match all price points and budgets. This makes adding shares of strong companies across different industries accessible to anyone, regardless of their financial status. Some of the best long-term gains are generated by buying into lower-priced businesses that are currently being undervalued by the market. Many of these stocks can turn into double or triple baggers over the years, which means choosing wisely will deliver truly astounding returns.
While there’s a lot more that should go into your analysis of a stock rather than simply looking at its share price, it's fair to say that stocks trading under $100 per share can deliver some of the best upside potential given that investors can add sizeable positions without needing a lot of capital. There are plenty of great stocks at this price point to explore at the moment, and we’ve put together a list of 3 standout names below. Let’s take a deeper look at the best stocks under $100 to buy now.
Alcoa Corporation (NYSE: AA)
If you are interested in owning a high-quality name in metals & mining,
Alcoa Corporation is a great option to consider. It’s a company that provides exposure to one of the most important commodity metals of modern times, aluminum. Alcoa’s business operations are comprised of bauxite mining, alumina refining, aluminum production, and energy generation, and it has 28 operating locations in 9 countries around the world. The stock is worth adding at this time thanks to the company’s strong financial position and a China energy crackdown that is driving aluminum prices to a 10-year high.
It’s important to note that Alcoa’s share price fluctuates nearly in tandem with the prices of aluminum, so the fact that Aluminum smelters in China can’t keep up with the country’s demand for the metal due to tightened restrictions on energy usage is certainly impacting the stock in a positive way. Expect aluminum demand to stay steady as the global economy continues to recover in 2021 and beyond. Alcoa is trading at its 52-week highs and could be a bargain at current price levels, particularly when you consider how the company set a record for delivering its highest quarterly net income and earnings per share in Q2.
LendingClub Corp (NYSE: LC)
Fintech stocks are certainly an intriguing area of the market to look for opportunities at this time, and LendingClub Corp stands out as a possible long-term winner given the company’s unique technology platform that has something to offer both borrowers and investors. LendingClub has developed an online marketplace that helps consumers and small business owners borrow at lower costs and helps investors earn risk-adjusted returns from an asset class that has historically only been available on a limited basis to institutional investors, consumer credit.
What’s also interesting here is that that company has a bank charter after completing the acquisition of Radius Bank, which allows LendingClub to save on expenses and avoid third-party banks originating its loans. The bank will also generate recurring net interest income for the company over the long term. LendingClub delivered impressive Q2 results in July including record net income on 93% growth in revenue and boosted its full-year revenue target by 45%, which should certainly give investors additional confidence in adding shares.
This company provides a cloud-based digital platform for medical professionals in the United States and has been a strong outperformer in the market since
going public back in June. While it can be a volatile stock to own, the way Doximity combines social media with the healthcare industry certainly makes it an attractive business to consider owning for the long term. The application helps doctors, physician assistants, pharmacists, and other healthcare professionals collaborate and coordinate patient care. Doximity even offers features productivity tools like digital fax and eSignature, along with voice and video telehealth services which could be the future of healthcare going forward.
Like many social media networks, Doximity generates the majority of its revenue by selling advertising space on its platform, and pharmaceutical companies and hospitals naturally are interested in buying ad space on the “LinkedIn for Doctors”. The company generated $72.7 million in revenue during Q1, up 100% year-over-year along with delivering record profit margins. Any business that can combine technology and healthcare in such an innovative way deserves your attention, and Doximity is a stock that could be trading over $100 sooner than many investors are likely anticipating.
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