Uncovering Three Exemplary Growth Shares That Won't Break the Bank with a $100 Budget
These days, it's becoming challenging to discover excellent growth stocks selling under $100 per share. It feels like a higher price is one of the criteria now. However, investors should be aware that there are numerous promising growth stock options for the long term that won't break the bank.
By exploring cheaper options, you can also distribute your investment dollars effectively, securing diversification as you invest in strong companies while they're still in their early growth stages. Just keep in mind that doing so means buying during periods of price volatility and risk.
If you're considering investments under $100, here are three top growth stocks to consider now: Crispr Therapeutics (CRSP 5.26%), Celsius (CELH 3.26%), and KB Home (KBH -1.64%). Here are some insights about these three budget-friendly stocks:
1. Crispr Therapeutics
An intriguing healthcare stock that long-term investors might want to consider is Crispr Therapeutics. The genome-editing stock closed at around $51 per share in late November, staying well under the $100 mark.
Although the stock has faced challenges this year, the bullish sentiment towards Crispr should increase now that it has received regulatory approval for its cell therapy, Casgyv, developed in conjunction with Vertex Pharmaceuticals. Casgyv has been approved for two rare blood disorders – sickle cell disease and beta-thalassemia. This state-of-the-art treatment, priced over $2 million, has the potential to be a turning point for Crispr by significantly enhancing the lives of patients affected by these conditions. With Crispr taking 40% of the profits and Vertex keeping the rest, the company's financials could experience substantial improvement in the near future.
Although Crispr does not generate consistent revenue currently, it has managed to keep control of its costs effectively, preventing rapid escalation.
Compared to many other small biotech stocks without approved products, Crispr is a safer investment option. As Casgyv is rolled out to patients, investors should soon witness an improvement in Crispr's financials. While there is some risk involved, the stock's current price is reasonable.
2. Celsius
Share prices of energy drink company Celsius have see-sawed lately, and that's excellent news for long-term investors. It flirted with the $100 mark earlier this year but subsequently plummeted due to reports of slowing growth rates and reduced guidance, leading to a summer sell-off. Currently, you can buy the stock for less than $30.
Investors should keep in mind that Celsius has some promising attributes, including a partnership with PepsiCo as a key distributor and investor. PepsiCo announced a $550 million investment in Celsius in 2022, demonstrating strong confidence in this global brand.
Celsius is navigating some headwinds as PepsiCo adjusts inventory levels for its products, aiming to strike the right balance for shelves. This scenario is likely to be a temporary challenge for the beverage company. Investors might be disappointed with Celsius' declining revenue growth recently, but there's still considerable growth potential for the enterprise in uncharted markets. The company has reported an operating profit in three of its last four quarters.
3. KB Home
KB Home is the closest stock on this list to the $100 mark, finishing November at a closing price of just under $83 per share. The homebuilding stock has been gaining momentum due to declining interest rates, generating optimism that sales could surge in coming quarters.
Ranked among the top homebuilders in the US, KB Home could benefit from better market circumstances. KB Home reported quarterly revenue of approximately $1.8 billion for the August 31st period, a rise of over 10% from the same period in the prior year. The company reported a strengthening in demand, a trend that could persist in the coming year as interest rates continue to decrease.
Trading at just 11 times its trailing earnings, KB Home represents an attractive growth and value stock to invest in today.
In the context of diversifying investments and considering stocks under $100, effectively distributing your finance can secure diversification by investing in promising growth companies like KB Home, which is currently trading at less than $100 per share. For those interested in the healthcare sector, Crispr Therapeutics, despite facing challenges this year, offers a bullish outlook due to its recent regulatory approval and potential financial improvements with the launch of its cell therapy, Casgyv.
In the world of energy drinks, Celsius presents an opportunity for long-term investors, as its share prices have dropped, allowing investors to buy the stock at a lower price, with potential growth coming from major partnerships like that with PepsiCo.
