Several tech stocks are still trading at depressed valuations amid a challenging macro-environment, indicating it’s a perfect time to buy the dip. Canadian investors can consider buying lower-priced stocks that are part of the U.S. markets to diversify their portfolios and gain access to the world’s largest economy.
In the current market, investors can invest as little as $100 and derive outsized returns over time. For example, even if you have just $100 to invest each month, your portfolio will surpass $100,000 at the end of 30 years, assuming an annual growth rate of 10%.
So, let’s look at three top U.S. stocks you can buy with $100 right now.
Palantir Technologies
Shares of Palantir Technologies (NYSE:PLTR) are trading almost 80% below all-time highs. PLTR stock is valued at US$16.5 billion by market cap and is currently priced at $8.01.
Palantir provides big data solutions to its base of enterprise customers in the public and private sectors. The company has increased sales from US$595 million in 2018 to US$1.54 billion in 2021. It’s on track to report sales of US$2.37 billion in 2023.
However, amid market conditions, Palantir is facing a slowdown in enterprise demand. It had forecast revenue between US$474 million and US$475 million in Q3, compared to estimates of US$505.6 million. Palantir attributed the tepid forecast to a slowdown in closing deals with the U.S. government.
Despite the temporary weakness in public sector revenue, Palantir is well equipped to manage the downturn. Armed with US$2.4 billion in cash and no debt, the big data company has enough room to turn profitable in the next few years.
Chewy Inc.
Chewy (NYSE: CHWY) is the largest online pet store retailer in the U.S. Valued at a market cap of US$15.5 billion, the tech stock is trading 69% below all-time highs. Similar to most other e-commerce companies, Chewy is also experiencing a deceleration in top-line growth this year.
For example, sales in Q2 increased by 13% year-over-year, compared to 27% in the year-ago period. However, despite an inflationary environment, Chewy is forecast to increase sales by 12.4% to US$10 billion in 2022.
CHWY stock is trading at 1.6 times forward sales which is very cheap for a growth stock. While still unprofitable, it’s forecast to end 2023 with adjusted earnings of $0.05 per share compared to a loss of $0.18 per share in 2021.
Given consensus price target estimates, Chewy’s stock price is trading at a discount of 30% right now.
Global-e Online
The final tech stock on my list is Global-e Online (NASDAQ: GLBE) which is down 44% year-to-date. A mid-cap stock valued at US$5.6 billion, Global-e shares rose over 30% following its Q2 results. In the June quarter, its sales rose 52% year-over-year to US$87.3 million, beating Wall Street estimates by 5%.
Global-e provides online shopping and shipping services, and its sales have increased from US$38.6 million in 2018 to US$245 million in 2021. Analysts expect Global-e to report revenue of US$417 million in 2022 and US$610 million in 2023. So GLBE stock is priced at nine times 2023 sales, which is expensive given it’s still reporting an adjusted loss.
But growth stocks command a premium, and Wall Street remains bullish on Global-e despite its steep multiples.
