One of the great things about investing is that there are countless opportunities to add quality companies to your portfolio regardless of your account size and budget. Anyone can grow their equity curve with proper planning and an eye for businesses that could be undervalued, and looking at stocks that are priced under $100 is a great place to start. With that said, focusing on stocks that already have strong momentum driving their prices higher can make things a lot easier.
That’s why we’ve put together the following list of stocks trading under $100 to buy now. Each one of these companies has something unique to offer and could be a bargain at the current price levels. Remember, just because a stock’s share price has not passed the century mark doesn’t mean it won’t do so in the future, and the fact that you can get more bang for your buck by shopping for companies at this price point is certainly intriguing.
Let’s take a deeper look at 3 hot stocks under $100 to buy now.
First up is KKR & Co, which is an alternative asset management company with $429 billion in assets under management as of Q2. Private equity stocks
offer a way for retail investors to gain exposure to investment vehicles that they wouldn’t normally be able to access, which is why KKR & Co stands out. The company manages investment funds that invest in private equity, credit and real assets, and hedge funds and is one of the most respected global investment firms in the world.
Like many capital markets stocks in 2021, KKR has been delivering strong alpha and has rallied over 63% year-to-date. There’s plenty of reasons to believe the stock has more upside in a low-interest-rate environment, particularly thanks to the company’s resoundingly positive Q2 earnings report released this week. KKR posted record fee-related earnings of $470.1 million in Q2, up 68% year-over-year, and also saw a record $59 billion of new capital raised in the quarter. This is a great option for investors looking for quality names under $100 per share, and the fact that it continues to hit new highs makes it easier to justify adding shares.
While adding shares of a company mere days after its public debut can be a risky endeavor, it’s hard to argue with the price action here as Robinhood
rallied over 24% to take out its $38 offering price during Tuesday’s trading session. Investors that are comfortable with some volatility in exchange for the possibility of strong gains should certainly be intrigued with Robinhood, as the company has arguably disrupted the entire brokerage industry with its commission-free trading platform. What’s really appealing here is the fact that Robinhood tends to attract a younger client base and has found a way to make finance fun with a user-friendly platform.
The company is growing quickly and reported transaction-based revenues of $522 million, up 309% year-over-year, in Q1. There’s also the fact that Robinhood offers cryptocurrency trading on its platform in addition to equities, which is a service that many of the other major brokerages have yet to match. While there is some risk here related to regulatory issues and the potential that the company’s growth slows as the pandemic induced retail trading boom subsides, it’s still a very interesting option to consider at this time given how the stock is acting after its IPO debut.
The homebuilders have been showing strength recently after a sharp pullback starting in May, and thanks to the way that demand is driving prices higher in the real estate market it's hard to argue against adding shares of a quality name like Toll Brothers. It’s a company that builds luxury homes in the United States and tends to focus on selling to “move-up” buyers and “empty-nesters”, which is noteworthy as that customer base has plenty of capital to spend regardless of what’s going on with the economy.
Toll Brothers also has strong pricing power at this time thanks to all of the families that are moving out of the city and into suburban areas, which is another strong selling point for investors to consider. The company reported a record home sales revenue figure in Q2 of $1.84 billion, up 21% year-over-year, and had a backlog value of $8.69 at the end of the quarter, up 58% year-over-year. Toll Brothers will report its Q3 earnings
later this month and the stock recently reclaimed all of the major moving averages, which means it could be gearing up to rally into the report.
Before you consider Toll Brothers, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Toll Brothers wasn't on the list.
While Toll Brothers currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
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