Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Where to Invest $10,000 Right Now

By Rachel Warren - Oct 8, 2021 at 5:45AM

Key Points

  • The first choice is one of the best marijuana stocks to buy right now.
  • Today's second stock is the market leader in a high-growth industry with plenty of runway left.

Motley Fool Issues Rare “All In” Buy Alert

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here are two great stocks to buy this month.

If you have $10,000 to invest this month, you're likely looking for a few high-quality businesses to put that money into that can fuel generous returns for the long haul. With such a solid amount of investing capital, you can easily distribute that cash across any number of great stocks. The most successful investors are the ones that have bought and held onto fantastic companies across a diversified collection of industries for many years. 

In keeping with a long-term buy-and-hold mindset and a diversified portfolio strategy, we're going to look at two very different companies today that fit that bill: a top pot stock and a well-known e-signature stock. 

Let's get started. 

woman wearing white sitting in brightly lit sunroom reading

Image source: Getty Images.

1. Green Thumb Industries 

Green Thumb Industries ( GTBIF -6.11% ) is a multi-state operator with a fast-growing list of retail locations and its own proprietary cannabis brands. It sells a range of products, including vape, flower, and concentrates.

The marijuana stock currently has 65 retail stores spread across the country in key cannabis states including Pennsylvania, Illinois, Florida, New Jersey, Massachusetts, and Nevada. It also has 16 manufacturing locations and holds licenses for 114 total retail locations. When you consider that the company was only founded in 2014, it's made significant headway in the U.S. cannabis market in an extremely short period of time.

In the company's most recent quarterly report, management said that revenue was up 85% year-over-year. And in the first six months of 2021, Green Thumb's revenue jumped 87% compared to the year-ago period. The second quarter of 2021 was also the fourth quarter in a row where the company reported positive net income, and its sixth quarter in a row of generating positive cash flow from operations. The company closed the second quarter with about $482 million in total assets vs. $198 million in total liabilities. 

Despite the company's rapid rate of growth, it's maintaining high liquidity, consistent profitability, and enviable revenue jumps. Green Thumb Industries looks on track to generate significant growth in the years ahead. With shares up about 100% over the past year alone, this is a great pot stock to jump on now and wait for the returns to flow in. 

2. Docusign 

E-signature company DocuSign ( DOCU 6.51% ) is known for its variety of cloud products and services used by individuals and businesses around the world. DocuSign offers hundreds of integrations with products and platforms from other well-known tech companies, including Salesforce, Microsoft, and Oracle, and had more than one billion users globally at the time of this writing. Today, the company controls a whopping 64% share of the entire e-signature market. 

Over the past five years, shares of Docusign have surged by an incredible 545%. That is more than four times the S&P 500's gain during the same period. 

In the second quarter of 2021, DocuSign reported that its total revenue increased 50% year-over-year, and that billings were up 47% year-over-year. On a GAAP basis, its gross margin was an attractive 78%, up from 74% in the year-ago period. The company also boosted its free cash flow to $162 million, whereas it reported free cash flow of less than $100 million in the year-ago quarter. 

DocuSign remains a compelling buy-and-hold investment despite its insane share gains in recent years, due to its strong track record of revenue growth (which it continues to build upon) and its compelling competitive advantage. Bear in mind, the global e-signature market in which DocuSign is the dominant force is only growing. According to a recent study by ResearchAndMarkets.com, the global e-signature market is set to realize a valuation of nearly $14 billion by the year 2027, a massive jump from its 2020 valuation of $2.5 billion.

Analysts think the stock has upside potential as high as 52% over the next year. Patient investors who buy this stock now could see equally momentous gains in the years ahead.  

 
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

DocuSign Stock Quote
DocuSign
DOCU
$143.88 (6.51%) $8.79
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$326.19 (0.98%) $3.18
salesforce.com, inc. Stock Quote
salesforce.com, inc.
CRM
$258.75 (0.17%) $0.43
Oracle Corporation Stock Quote
Oracle Corporation
ORCL
$88.94 (0.79%) $0.70
Green Thumb Industries Stock Quote
Green Thumb Industries
GTBIF
$19.38 (-6.11%) $-1.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/07/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.