Do you have $ 5,000? Buy and Hold These 3 Stocks That Beat the Market | Personal finance

(Selena Maranjian)

Market downturns like the one we are going through can be very disturbing for investors, especially those with less experience. More savvy investors are likely to remember how the market plummeted in the past, only to bounce back and hit new highs. They will also likely remember that bear markets tend to offer many fantastic investment opportunities when large company stocks go up for sale.

Here are three examples: three solid companies with very promising futures and stocks that have experienced falling costs. See if anyone piques your interest.

Image source: Getty Images

1. PayPal

Money may be king, but more and more people are transacting digitally and one of the leading companies in the “fintech” arena is PayPal (NASDAQ: PYPL). How big is a player? Well, consider that its market value was recently $ 85 billion, following a 76% drop in its share price from its 52-week high.

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PayPal boasted 426 million active consumer and merchant accounts at the end of 2021, when it employed nearly 31,000 people. In 2021 it processed a total of $ 1.25 trillions in payments, with an average of 40,000 transactions per minute. Better yet, the company is more than just the PayPal payment platform; the company also owns the popular Venmo app, not to mention Zettle, Xoom, Hyperwallet, Honey, and Paidy, among other businesses. PayPal noted in its 2022 annual report that “Today, over 70% of major North American and European retailers, including over 80% of major US retailers, accept PayPal or Venmo at checkout.”

In the first quarter, PayPal recorded an increase in total payment volume by 13% (15% in neutral currency) and net revenue by 7%. It also added 2.4 new net active accounts in the quarter. It also ended that quarter with a fairly healthy balance sheet, featuring over $ 15 billion in cash and cash equivalents and investments and about $ 9 billion in debt.

2. Broadcom

Broadcom (NASDAQ: AVGO) It might not be a terribly familiar name to you, but it’s a huge chip maker, with a recent market value close to $ 200 billion. It is also the product of various mergers and acquisitions with the likes of LSI, Broadcom Corporation, Brocade, CA Technologies and Symantec.

Broadcom is already a diversified chip maker, with a range of offerings for the data center, networking, enterprise software, broadband, wireless, storage and industrial markets, among others. Additionally, it is looking to expand into the world of hybrid cloud computing, which incorporates multiple cloud environments, both private and public, by acquiring software specialists. VMware – reportedly for over $ 60 billion.

Broadcom is also a solid dividend-paying stock, with a payout that recently returned 3.3%. Even better, that dividend has grown rapidly, with an average increase of 32% annually over the past five years. While many tech-oriented companies have seen their shares drop dramatically, Broadcom’s shares have only fallen about 27% from its 52-week high, a relatively small decline. Clearly, the company has a lot to offer investors. (NASDAQ: AMZN) it is known to most people as an online marketplace, with a Prime subscription service offering streaming of videos, ebooks, music, games, and more. Its Amazon Web Services (AWS) cloud computing business is less well known but growing rapidly, with AWS revenue growing 37% year-over-year in the company’s first quarter and 16% of total revenue, compared to 13% for the company. ‘last year . And, of course, he has a lot more to do, like his advertising business. Emerging companies include Amazon Care’s virtual health services, along with Project Kuiper, an initiative to increase global broadband access via satellites. Amazon also hosts devices and services such as Alexa, Echo, Fire TV, Fire tablet, Kindle, Ring, Eero, and many more.

With its stock down 37% from its 52-week high, is priced more attractively than in recent years. Its recent price-to-earnings (P / E) ratio of 59 may seem a bit high, but it’s slightly below half the stock’s five-year average of 120. If you’ve ever wanted to be a co-owner of Amazon, this is an opportunity. promising.

These are just three solid companies with great growth potential, all of which are selling at a much lower price than they have been in some time. Take a closer look at them all and consider them for your portfolio, or go hunting alone, as there are plenty of other great-growth stocks at attractive prices out there. Whether you have $ 5,000, $ 500, or $ 50,000 to spend, great investment opportunities abound.

10 titles we like the most from PayPal Holdings

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John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a board member of The Motley Fool. Selena Maranjian has positions in Amazon and PayPal Holdings. The Motley Fool has locations and recommends Amazon and PayPal Holdings. The Motley Fool recommends Broadcom and VMware. The Motley Fool has a disclosure policy.


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