A mix of trepidation and optimism permeate the fluctuating U.S. stock market landscape at this time. Consequently, the hunt for stocks to buy for under $100 becomes more of a strategic endeavor.
The market has been weighed down by heightened Treasury yields and the looming shadow of inflation, which presents its challenges. So, as volatility reigns, the magnetic pull of these undervalued picks stocks grows stronger. It’s leading discerning investors towards potential gains. While the journey is punctuated by both risk and reward, the allure of these stocks is incredibly compelling. Let’s explore three top stocks you can scoop up for just a $100 bill.
Coca-Cola (KO)
Atlanta-based, iconic Coca-Cola (NYSE:KO) once again quenched Wall Street’s thirst for a robust financial performance. The company’s Q3 financial revelations exceeded analyst expectations across both lines. The numbers are refreshing, with an EPS of 71 cents, overshadowing the anticipated 69 cents. And quarterly revenues clocked in at $11.91 billion, surpassing the estimated $11.44 billion. Moreover, on a year-on-year (YOY) basis, the company celebrates a sparkling 8% surge in third quarter sales.
The beverage mogul’s allure isn’t just limited to its massive global consumer base. Investing giant Warren Buffett’s fondness for Coca-Cola is no secret either. His investment firm boasts a sizzling stake valued over a whopping $21 billion.
Glancing toward the future, the company’s revised forward guidance radiates confidence. Prior projections are now hovering between 5% to 6% for EPS growth. Additionally, they’ve been bumped to a more buoyant 7% to 8%. Similarly, revenue growth forecasts have been enhanced, jumping from an initial 8% to 9% to an incredible 10% to 11%.
Pfizer (PFE)
Pharmaceutical powerhouse Pfizer (NYSE:PFE), continues facing its fair share of turbulence in the stock market.
Skepticism regarding its growth prospects, especially with the world transitioning beyond the pandemic, has negatively impacted its stock performance. The impending patent expirations of some of its drugs have only exasperated these concerns. And this is causing jitters over the company’s forward momentum.
PFE stock currently offers a hefty dividend yield of 5.45%. Further, the sustainability of these dividends sweetens the deal. Moreover, the company has been proactive in steering its growth trajectory with its robust research pipeline promising innovation. PFE is targeting a whopping $20 billion in incremental revenue from novel molecular entities by 2030.
Additionally, the windfall from their COVID-19 vaccine sales has armed the company with a massive cash flow base to pursue acquisition-led growth effectively. Weighing these promising factors, now might be an opportune moment to invest in PFE stock.
Enel Chile (ENIC)
Enel Chile (NYSE:ENIC), stationed in Santiago, is at the heart of Chile’s electrical revolution. As a leading electric utility company, it generates and distributes electricity throughout Chile. And it deals in natural gas distribution. Moreover, it harnesses power from a diverse range of sources including thermal, hydroelectric, wind, geothermal, or solar.
Truly, the nation’s economic pulse is racing. Projections point to a substantial 25% spike in energy consumption in the current decade. ENIC is uniquely poised to tap into this rising tide, forecasting healthy profit growth in the years to come.
However, the real proof lies in the numbers. The company’s stock has electrified the market, soaring by over 100% over the past year. Dive deeper, and the financial metrics are equally illuminating. With ENIC’s net income margin for the trailing twelve months (TTM) dazzling at 28.4%, it outshines the sector median by a staggering 200%. Furthermore, its return on common equity (ROCE) for the same period sits at an enviable 36.2%, vastly outperforming the sector’s median.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
