WMT

3 Stocks Under $100 That Could Be Portfolio Game-Changers

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Beginner investors are always worried about spending too much or too little in the stock market. Some want to start slow and watch their investments while others want to go all in and reap significant gains.

However, the stock market cannot be timed, and no crystal ball can help us either. The trick is to identify undervalued stocks that can become portfolio game-changers in the long term. If you are starting your investment journey with a limited amount, consider three stocks to buy under $100 for significant long-term returns. 

These companies have impressed the market with stellar fundamentals and can keep roaring higher. Strong results have led to a raised price target and strong buy ratings for these stocks. Among the best players in the industry, they could provide an early-mover advantage when bought below $100. Let’s take a look at the three stock picks. 

DraftKings (DKNG)

Person holding smartphone with logo of US sports betting company DraftKings Inc. (DKNG) on screen in front of website. Focus on phone display. Unmodified photo.

Source: T. Schneider / Shutterstock.com

Betting company DraftKings (NASDAQ:DKNG) announced better-than-expected results for the first quarter. It beat expectations and reported a revenue of $1.17 billion, up 52% year-over-year (YOY). 

The company reported a non-GAAP profit of $0.03 per share from the loss of $0.51 it reported in the previous year. Following an excellent quarter, the management has lifted the revenue guidance for the year. It went to $4.8 billion to $5 billion from the earlier midpoint of $4.78 billion.

Furthermore, DraftKings has tremendous expansion potential in the coming years, as more states allow online betting. In Q1, it pressed into two states and managed to attract 3.4 million users. Also, it is seeing a 23% jump in monthly unique payers and a 25% rise in the average revenue per monthly unique payer. 

Trading at $43.66 today, DKNG stock is up 33% year-to-date (YTD) and 16% in the last six months. However, it looks undervalued to me. Therefore, buying the stock below $50 will set you up for massive gains in the long term. Over a dozen analysts raised the price target of DKNG stock after the strong earnings. 

NextEra Energy (NEE)

Nextra Energy (NEE) website on a mobile phone screen

Source: madamF / Shutterstock.com

One of the best renewable energy companies, NextEra (NYSE:NEE) generates, distributes and sells electricity in the U.S. It creates steady revenue through the utilities business as the largest electric utility in the nation. Also, the company is committed to renewable energy and reported impressive first-quarter numbers.

It saw an 8.3% YOY rise in earnings per share and reported a net income of $1.10 per share, up from $1.04 per share in the prior year. The company added 1,640 megawatts of solar resources to its portfolio and another 2,765 megawatts of renewable energy resources to the backlog. 

For the full year, the management is aiming for adjusted EPS in the range of $3.23 to $3.43. Furthermore, it expects to grow 6% to 8% in the next two years. 

A dividend stock, NEE is trading for $75.97 and is up 23% YTD. It enjoys a dividend yield of 2.72% and expects to raise the dividend by at least 10% until 2026. The growing demand for renewables and favorable government policies will benefit NextEra Energy. Several analysts have a buy rating for the stock, and it has a strong upside potential going forward. 

Walmart (WMT)

Walmart (WMT) logo on a store front

Source: Ken Wolter / Shutterstock.com

Trading at $64.71, Walmart (NYSE:WMT) is a hidden gem that shouldn’t be ignored. The stock is up 20% YTD as it quietly moves higher. WMT understands that consumers are always looking for the best deals at low prices. 

Even with a slight cooling of inflation, Walmart stock will not disappoint. First-quarter numbers impressed with a revenue of $161 billion and an EPS of $0.60

A dividend stock, WMT enjoys a yield of 1.29% and is a highly reliable investment below $100. The stock hasn’t been able to hit $100 in its years of operation, but potential exists for it to keep moving higher. WMT remains one of the best stocks to buy under $100.

Walmart has invested in the e-commerce business and is already seeing returns on investment. It saw a 22% rise in e-commerce sales in the U.S. and its advertising business soared 24% in the quarter. Finally, over 15 analysts have raised their price target on the stock after the earnings. 

On the date of publication, Vandita Jadeja did not hold (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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

More From InvestorPlace

The post 3 Stocks Under $100 That Could Be Portfolio Game-Changers appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.