Stock prices have been falling, making this an interesting time to buy quality stocks at potentially attractive price points. You don't need a lot of money to take advantage of the compelling prices, and even $1,000 can turn into a lot if you buy the right stocks at the right time.
Camping World Holdings (CWH 2.60%), Pinterest (PINS 1.02%), and fuboTV (FUBO -0.74%) are three promising stocks trading well below last year's all-time highs. Let's see why any of them -- or even all of them -- would be smart investments to consider with the next $1,000 that you're ready to put to work in the market.
Image source: Getty Images.
Camping World
Camping World was a leader in recreational vehicles (RVs) before appreciation for outdoor living kicked things up a notch during the COVID-19 crisis. Business is booming, and the stock has followed suit. The stock nearly doubled in 2020, only to climb another 66% last year. Being in the right place at the right time isn't always enough, and Camping World stock is down by nearly a third since peaking last year.
Camping World is still growing strong, and even now that the volume of RV units has slowed it's more than making up for that with higher prices on new and used RV sales. Revenue rose 14% in its latest report, and net income climbed by an even better 22%. The future will have its cyclical ups and downs, and high gas prices aren't making a home on wheels a savory bucket list item right now. However, Camping World is freakishly cheap. The stock is selling for just five times trailing earnings. Analysts see low-single-digit sales and earnings growth in 2022, but the dividend will reward patient investors. Camping World is yielding 5.9%, with several hikes and special distributions in recent years.
Image source: Pinterest.
There's no denying that the visual search engine had a rough landing out of the pandemic. With folks heading outside again it no longer seems necessary to scour Pinterest for recipes, home decor tips, and other inspirational posts. After back-to-back quarters with sequential dips in domestic users it's easy to see investors have also moved on in recent months. The stock has plummeted 68% since peaking 11 months ago, but it's time to approach Pinterest with fresh opportunistic eyes.
Pinterest is still huge. It attracted 444 million global monthly active users in its latest quarter. Audience growth may have stalled, but advertisers are willing to spend a lot to reach the lucrative niche audience that Pinterest delivers. Revenue rose 43% in the quarter despite a 1% decline in active users worldwide.
Net income and adjusted earnings also more than doubled in its latest quarter, and that's where this once dynamic growth stock starts to get interesting as a value play. Analysts see revenue and earnings per share climbing 25% and 22%, respectively for all of 2022. It's healthy growth, and Pinterest is trading for just 21 times this year's projected earnings as of Tuesday's close.
It gets better. Pinterest is a scalable business, and Wall Street has erred on the side of being conservative with its profit targets. Pinterest has beaten analysts' net income estimates by at least 22% in each of the past four quarters. Growth is still there, and Pinterest is cheaper than naysayers -- and even some bulls -- probably think.
Image source: Getty Images.
fuboTV
If you think Pinterest has taken a hit, fuboTV stock takes the cake at the pity party. The stock has plummeted 83% from last year's peak, and on Tuesday it closed in the single digits for the first time. One of its biggest bulls -- Needham analyst Laura Martin -- slashed her price target on the shares from $60 to $15 late last week.
The live TV streaming service is living up to the hype in terms of top-line growth. Its first five quarters as a public company delivered spectacular year-over-year revenue gains.
- Third quarter 2020: 71% revenue growth.
- Fourth quarter 2020: 98% revenue growth.
- First quarter 2021: 135% revenue growth.
- Second quarter 2021: 196% revenue growth.
- Third quarter 2021: 156% revenue growth.
The bottom line has been another story. Expansion and gambling initiatives have eaten into any potential profitability, and the near-term outlook is hazy. In cutting her price target by 75% on Friday, Martin notes that tougher comps, chip shortages, supply chain pressures, the impact of the omicron coronavirus variant on digital ad growth, and rising inflation will make business challenging for fuboTV -- even if she concedes that the first four of the five hurdles will be temporary.
The market has tossed out fuboTV, but the game's not over. It continues to be the fastest-growing player among streaming service stocks, and it's not likely to stay in the single digits for long.
