Don't Think Twice About Adding These 3 Quality Stocks
The beauty of investing in stocks is that anyone can get involved and start adding shares of quality companies without having a massive budget. All it takes is some research and a bit of determination to get involved in financial markets, and with many of the biggest companies in the world seeing their share prices pull back hard to start the year, there are some great deals to be had. A $1000 budget is a good starting point for new investors or for people that are interested in using some of their savings to scoop up shares of solid companies, as this will cast a wide net and allow for plenty of options to choose from.
Certain companies stand out as being worthy of adding to your portfolio at almost any level, as these market-leading businesses have been known to provide reliable gains over the long run. That’s why we’ve put together the following list of 3 no-brainer stocks to buy with $1000 below. Let’s take a deeper look at why these are great picks to consider at this time.
If you’re looking to add a leading retailer that should put up strong numbers in any economy, targeting shares of Target makes a lot of sense. With around 2,000 stores and counting across the United States and a rapidly growing e-commerce business, this is absolutely one of the strongest stocks in retail. Target
is a no-brainer thanks to the company’s established brand and the moves the company has made to expand its omnichannel sales, with older stores being renovated to serve as fulfillment centers. The company has also developed successful private brands, which grew an 18% in FY 22 to $30 billion in revenue.
Target is a prime example of a company that thrived during the pandemic, but investors should still expect decent sales growth this year even as the company faces tough comps. Finally, the fact that Target has been partnering with national brands like Ulta Beauty and leveraging its loyalty program could mean big things for the company over the long term, especially if it can continue gaining insights from its customer data. At a 16.86 P/E ratio, Target shares are much cheaper than peers like Costco and Walmart, yet another solid reason to consider adding exposure.
Let’s face it, most investors are going to look into the tech sector at some point for buying opportunities, as these companies are driving both innovation and the world’s economy further. Microsoft
stands out as a no-brainer pick in that sector for a few different reasons. First, the fact that it’s the world’s largest software company is a huge plus, as it tells investors that this is an established business that should continue putting up consistent earnings numbers for years to come. Products like Office, Windows, SQL Server, Xbox, and more are best-sellers that generate billions in revenue each quarter, which is certainly reassuring for conservative investors that want tech exposure.
In addition to the established cash cows, Microsoft’s enterprise cloud business Azure offers plenty of growth potential over the next decade too. In fact, the company grew Azure at an impressive 50% rate during fiscal 2021. Azure offers a great way for enterprise clients to try hybrid cloud environments since many existing companies are already using Microsoft solutions, which is a huge competitive advantage going forward. Finally, the fact that this stock has pulled back about 17% year-to-date means that investors can add exposure to one of the best companies in the world at a price well off of 52-week highs.
The health care sector is always a great place to look for investment opportunities, and that certainly holds true as we continue making our way out of a global pandemic. CVS Health
stands out as a solid option given that it’s the largest pharmacy health care provider in the U.S. The company has done a lot to change its business for the better in recent years, including remodeling stores to include expanded services and acquiring one of the largest health insurers in the country, Aetna. Those moves are already paying off, and the fact that CVS is a leader in medical insurance, pharmacy benefits, and retail healthcare product should excite long-term investors.
Back in February, CVS posted better-than-expected full-year results including 12% EPS growth, which is certainly a sign of a company heading in the right direction. There’s also a lot to like about the 2.12% dividend yield here, and with a forward P/E of 12.54, it’s hard to argue against at least nibbling on shares at current levels. Healthcare spending makes up a massive portion of the overall economy, and that isn’t going to change anytime soon, making CVS Health a no-brainer.
Before you consider Target, 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 Target wasn't on the list.
While Target currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.
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