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Got $3,000? Buy and Hold These 5 Market - Beating Stocks

Here are five examples: Five reliable businesses with bright futures and shares that have decreased in price. See which ones catch your attention.

By Odedele BadiruPublished 2 years ago 5 min read
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Investors, especially novice ones, might become very uneasy during market downturns like the one we're currently experiencing. More seasoned investors may recall how the market has fallen in the past before rebounding and reaching new highs. They will presumably also recall that when the stocks of excellent companies are discounted during bad markets, there are usually a ton of fantastic investment possibilities.

Here are five examples: Five reliable businesses with bright futures and shares that have decreased in price. See which ones catch your attention.

1. PayPal

Although cash may still be king, more and more individuals are doing financial transactions online. PayPal is one of the top businesses in the "fintech" sector (NASDAQ: PYPL). How significant a player is it? Consider that it recently had a market worth of $85 billion, which was following a 76 percent decrease in the stock price from its 52-week high.

As of the end of 2021, PayPal had 426 million active consumer and merchant accounts, and it employed close to 31,000 workers. It handled $1.25 trillion in of payments in 2021, processing 40,000 transactions per minute on average.

Even better, the corporation operates more than just the PayPal payment system; it also owns the well-known Venmo app in addition to other companies like Zettle, Xoom, Hyperwallet, Honey, and Paidy. More than 80% of the major retailers in the United States and more than 70% of those in North America and Europe now accept PayPal or Venmo at the point of sale, according to PayPal's 2022 annual report.

In its first quarter, PayPal reported an increase in net revenue of 7% and a total payment volume increase of 13% (or 15% on a currency-neutral basis). 2.4 net new active accounts were added during the period as well. It also had a pretty sound balance sheet at the conclusion of that quarter, with nearly $9 billion in debt, more than $15 billion in cash and cash equivalents, and investments.

2. Broadcom

Although you might not be too familiar with the term, Broadcom (NASDAQ: AVGO) is a sizable chipmaker with a recent market value of close to $200 billion. Additionally, it is a result of a number of mergers and acquisitions with companies including LSI, Broadcom, Brocade, CA Technologies, and Symantec.

With a variety of products for the data center, networking, enterprise software, broadband, wireless, storage, and industrial applications, among others, Broadcom is already a versatile semiconductor manufacturer.

On top of that, it plans to acquire software expert VMware, apparently for more than $60 billion, in order to grow in the hybrid cloud computing sector, which includes a number of cloud environments, both private and public.

Broadcom is a reliable dividend-paying company as well, with a recent distribution yielding 3.3%. Even better, during the past five years, that dividend has increased by an average of 32 percent annually. While many technology-related businesses have had dramatic price declines, Broadcom's stock has recently experienced a comparatively modest decline from its 52-week high, falling only about 27%. It is obvious that the business has a lot to offer investors.

3. Amazon.com

The majority of people are familiar with Amazon.com (NASDAQ: AMZN) as an online retailer with a Prime membership plan that offers streaming video, ebooks, music, games, and more. Its less well-known but rapidly expanding Amazon Web Services (AWS) cloud computing division saw sales increase by 37 percent year over year in the first quarter of the firm, from 13 percent to 16 percent of overall revenue. Of course, it also has a number of other activities, like its advertising company. Amazon Care virtual health services and Project Kuiper, a satellite-based attempt to provide worldwide broadband access, are examples of emerging industries. Devices and services including Alexa, Echo, Fire TV, Fire tablets, Kindle, Ring, Eero, and many more may be found on Amazon.

Amazon.com's shares are currently trading at a more appealing price than in previous years, having recently dropped 37% from their 52-week high. Although the stock's present price-to-earnings (P/E) ratio of 59 may seem high, it is only slightly higher than the stock's five-year average P/E ratio of 120. This is a great chance if you've ever wanted to buy a piece of Amazon.

These are simply three reliable businesses with lots of room for expansion, and they are all trading for significantly less than they have recently. Take a closer look at any and think about adding them to your portfolio. Alternatively, you can search on your own as there are many other fantastic growth stocks available at appealing prices. No matter how much money you have to invest—$5,000, $500, $50,000—there are many excellent options.

4. Berkshire Hathaway

This is the least exciting value pick of the group, despite the fact that growth stocks make up the majority of this list. About 60 subsidiary companies are owned by Berkshire Hathaway, among them well-known brands as GEICO, Duracell, and Dairy Queen. Additionally, Berkshire owns a portfolio of common stocks worth close to $350 billion, which includes sizeable stakes in a number of businesses, many of which were personally chosen by legendary investor Warren Buffett, such as Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), Chevron (NYSE:CVX), American Express (NYSE:AXP), and Coca-Cola (NYSE:KO).

The Buffett haters will claim that he has lost his fastball, but despite Berkshire's enormous size, the company consistently outperforms the market. Berkshire would be the biggest actively managed mutual fund in the world if it were a mutual fund.

Buffett won't hold the reins indefinitely. But Berkshire is his legacy, and he has spent years stress-testing it to ensure that it will be in good health long after he is no longer in charge. He and his colleague Charlie Munger have been purchasing back shares at an unprecedented rate as a sign of their faith. The rest of us should take note of that signal.

5. Etsy

Before the COVID-19 outbreak, Etsy was flourishing thanks to its ability to match creative entrepreneurs with clients seeking items that are a little out of the usual compared to standard e-commerce fare. The pandemic saw a dramatic increase in all forms of e-commerce. But Etsy certainly took off, expanding at a rate that is more than twice as fast as general e-commerce.

The fact that Etsy was a logical fit for customers looking for distinctive face masks undoubtedly helped, but the site's expansion has been amazing in all product categories. Etsy's marketplace sales volume increased by 177 percent in the first quarter of 2022 compared to comparable pre-pandemic levels.

You'll see that I pay attention to strong platforms throughout this list. Without a doubt, Etsy is one of them. Few online retailers can compete with Amazon and remain successful. When Amazon launched its own platform for handmade goods, Etsy not only made it through, it triumphed.

Etsy's market opportunity is in the hundreds of billions of dollars and it has only begun to scratch the surface because of its platform and brand strength.

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About the Creator

Odedele Badiru

Odedele Badru is a freelance content marketer who promotes growth of businesses. His articles have appeared on a number of websites, including BusinessDaily, Entrepreneur. He holds both a marketing and public relations diploma and an MBA.

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