The Best Stocks to Invest $1,000 in Right Now
If you're looking to invest $1,000 in the stock market after the holiday season, you're not alone. Finding solid investments after the shopping frenzy can be a smart move, especially if you consider undervalued tech stocks.
The stock market has experienced a rollercoaster in 2024, especially as we approach the end of December. For instance, Nvidia, a prominent player in the artificial intelligence chip sector, saw its shares decline by 11% in just one month. Although the stock has soared by 161% year-to-date, this slump might present a chance to acquire Nvidia shares at a more attractive price.
However, despite its popularity, Nvidia isn't the top choice for every investor right now. At 52 times trailing earnings and 58 times free cash flow, the stock remains pricey. There are more reasonably priced options worth considering. If you have $1,000 to invest now that the holiday expenses are out of the way, here are two intriguing stock candidates: Fiverr International and Intel.
Fiverr's Growth Potential
Initially, many investors saw Fiverr as a pandemic play, as people turned to freelance services to address financial uncertainties while staying at home. While the pandemic's grip has loosened, and businesses have reopened, Fiverr has continued to evolve rather than fade away. Despite a temporary slowdown post-lockdowns, the company remains profitable and is seeing growth.
Over the last two years, Fiverr's shares have increased by only 9%, a stark contrast to the S&P 500's 55% gain. This discrepancy highlights an investment opportunity, as Fiverr's stock is trading at a low valuation of just 14.6 times its free cash flow. Furthermore, forecasts suggest robust revenue growth in 2025, largely driven by a more optimistic outlook among small and medium-sized businesses. After exceeding analyst expectations in its recent earnings report, Fiverr's stock even jumped 35% in a week. With this positive momentum, Fiverr's growth story appears undervalued, warranting closer attention from investors.
Intel's Shift in Strategy
Intel, a giant in the semiconductor industry, is fundamentally reworking its business strategy. The company has significantly increased its capital expenses from $15 billion annually before the pandemic to about $25 billion in recent years. This investment is vital for Intel’s goal of establishing itself as the second-largest external chip foundry globally by 2030.
This ambition not only promises potential benefits for Intel’s financial health and shareholders but also plays a crucial role in national security by promoting domestic semiconductor manufacturing in places like Arizona and Ohio.
Currently, Intel’s stock trades at low valuation ratios, reflecting market concerns about its transition period, during which the company is unprofitable. The recent departure of CEO Pat Gelsinger has further contributed to a negative outlook among investors. However, some believe that this combination of an eager long-term strategy and market skepticism creates a prime opportunity to invest in Intel.
In summary, both Fiverr and Intel offer promising opportunities for investors looking to invest $1,000 in the current market. These companies showcase potential for growth and improvement in their valuations in the near future, making them strong candidates for your investment consideration.
stocks, technology, investment