You needn’t have a ton of money available to speculate. Steadily investing even modest amounts of cash and distributing that capital across various stocks through thick and thin out there can enable you to compound your returns with time. It is important to grasp the business behind any stock you purchase.
While the recent market volatility is making some investors terrified of putting money to work, if you have got a more modest amount, like $200, you may still gain exposure to businesses you would like in your portfolio without putting your financial health on the road.
Long-term investors can find opportunities to place money into quality businesses in any environment: bull market, bear market, or anywhere in between. Nonetheless, you need to never invest the cash you plan to take out soon with the intention to fund essential expenses.
On that note, listed here are two no-brainer growth stocks to think about if you have got $200 to speculate right away.
1. Hims & Hers
Hims & Hers (NYSE: HIMS) has experienced some volatility these days, but shares are still trading up by around 116% over the trailing-12-month period. The virtual care company’s business model revolves around recurring subscriptions, which patients pay to access repeat deliveries of each prescription and nonprescription products.
Users may access a wide selection of healthcare resources on the Hims & Hers platforms and one-on-one telehealth sessions with medical providers in various specialties. These include dermatology, mental health, weight reduction, and sexual health and wellness.
Hims & Hers recently began selling GLP-1 (Glucagon-like peptide-1) injections for just $199 a month as the corporate seeks to capitalize on the boom these drugs are having in treating quite a lot of concerns, including chronic weight management. The flexibility to pay a subscription to get not only quality medical care but additionally direct deliveries of significant medicines straight to your door is a invaluable proposition for Hims & Hers subscribers.
Revenue, profits, and money flow are ballooning for the business. Hims & Hers finished the second quarter of 2024 with 1.9 million subscribers, 43% greater than the subscriber count it reported at the identical time last 12 months. The corporate brought in profits of $13.3 million on revenue of $315.6 million within the three-month period.
That revenue figure was up a notable 52% from one 12 months ago, while Hims & Hers had reported a $7.2 million net loss within the comparable quarter in 2023. Free money flow for the three-month period got here in only shy of $48 million. Hims & Hers looks like a wonderful strategy to put money into the current and way forward for healthcare, and its rapidly improving financial foundation could bode well for generous, prolonged investor returns.
2. Shopify
Shopify (NYSE: SHOP) has handled the shifting tide of consumer and investor sentiment in the previous few years. Growth slowed after the superior trajectory it witnessed through the height of the pandemic, and lots of investors jumped ship.
Layoffs, fluctuating profitability, and the surprise sale of its logistics business shortly after expanding its achievement network were all elements that understandably made some investors uneasy. Nonetheless, Shopify appears to be making regular progress on the financial front, and it stays a market leader in global e-commerce solutions.
Within the second quarter of 2024, gross merchandise volume rose 22% 12 months over 12 months to $67 billion, with revenue bumping up 21% to $2 billion. What drove these figures was the 27% growth in subscription solutions revenue, partly a function of recent merchants onboarding and price increases for Shopify’s subscription plans. As well as, merchant solutions revenue grew 19%.
Shopify’s free money flow of $333 million was greater than 3 times higher than the figure it reported in the identical quarter last 12 months, and it finished out the quarter with money and investments of $5 billion. Looking over a more prolonged period, the last 12 months have seen Shopify herald net income of $1.3 billion on revenue of $7.8 billion.
While economic turbulence could affect e-commerce spending within the short term, the outlook for this industry stays robust over the long run. With a multitrillion-dollar addressable market, there’s loads of room for Shopify to achieve a fragmented industry where it stays a key player. That is a chance investors might need to capitalize on with a multiyear buy-and-hold position.
Must you invest $1,000 in Hims & Hers Health right away?
Before you purchase stock in Hims & Hers Health, consider this:
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Rachel Warren has positions in Shopify. The Motley Idiot has positions in and recommends Shopify. The Motley Idiot has a disclosure policy.
2 No-Brainer Growth Stocks to Buy With $200 Right Now was originally published by The Motley Idiot