The market's making big moves these days, and you don't need a lot of money to take advantage of the volatility. With so many trading platforms offering commission-free moves, it's never been cheaper to invest even modest amounts. With more brokers open to trading fractional shares, you also don't have to limit small investments to stocks with small price tags.
MercadoLibre (MELI 3.09%), Twilio (TWLO 1.47%), ZIM Integrated Shipping Services (ZIM 16.07%), Disney (DIS -0.04%), and Chipotle Mexican Grill (CMG 2.41%) are five stocks that look good right now. Putting your next $500 into any or even split between them could be a smart move.
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MercadoLibre
Latin America's leading online marketplace operator is only getting bigger and better, but the same can't be said about its stock prices. It just posted another blowout quarter, but it's somehow trading 44% below the all-time high it hit 14 months ago.
There are 82.2 million unique active users across the MercadoLibre ecosystem, and revenue soared 74% on a foreign exchange neutral basis for its latest quarter. There was $8 billion in gross merchandise volume transacted through its flagship e-commerce marketplace in the final three months of 2021, but the real story is fintech. MercadoPago, its faster-growing payment platform, topped $24 billion for the quarter.
With its stock price currently north of $1,100, $500 won't buy you a single share of MercadoLibre. But more brokers are allowing customers to buy fractional shares, making a purchase in the top dog of Latin American e-commerce and fintech viable for all investors.
Twilio
Your cell phone is now a smartphone, and Twilio gets a lot of the credit for making it happen behind the scenes. Twilio is the leading provider of in-app communication solutions, the platform of choice for many of your favorite apps. When your takeout-delivery service notifies you that your driver is approaching or when you get near-instant confirmation on the availability of a vacation villa, that's Twilio in action.
Twilio is posting healthy growth, even if it's important to keep an eye on organic growth, given the company's penchant for acquisitions that pads reported top-line gains. Armed with strong retention rates and an expanding client base that trusts Twilio's new offerings, this is a smart play on the smartphone revolution.
ZIM Integrated Services
Last year was a great time to be an international container shipping specialist. Companies paid a premium to get stuff imported, and the Israeli-based company was a beneficiary of the panic buying and supply chain constraints that drove transportation prices higher. ZIM trades at just 2.5 times trailing earnings. It also pays a variable dividend based on earnings, and that payout -- consisting of 20% of quarterly earnings and another 30% distributed based on full-year income -- translates to a current yield of 14.3%.
This all sounds too good to be true, and the caveat is that business isn't likely to come close to where it was last year. Business will either normalize in the year ahead or be disrupted by the escalation of warfare in Eastern Europe. Net income will decline, the earnings multiple will climb, and the yield will dip. I still think ZIM is attractively priced, and it's hard to beat the bountiful payout as we wait for business to slow. ZIM reports financial results next week, offering us a glimpse of how the near-term is going.
Disney
The entertainment giant probably needs no introduction, but let's get into why the industry leader of theme parks, content, and broadcasting is a smart buy at this point. Disney was the worst performer of the Dow 30 last year, and it's trading lower again year to date. But its business has only gotten stronger. Its Marvel franchises continue to dominate the box office. Its domestic theme parks are back to pre-pandemic levels. And Disney+ has grown faster than any premium service in its first two years of availability.
Chipotle Mexican Grill
The restaurant industry got a surprising boost during the pandemic, and national brands with an edge made out the best. Consumers turned to third-party takeout delivery apps during the early months of the pandemic, and that was a bountiful harvest for Chipotle. It was the provider of comfort eats for a legion of fans of the "food with integrity" fast-casual dining, and that helped the chain stand out as folks scrolled through their apps.
Chipotle was also already ahead of the game. It made digital sales a priority before pandemic-related closures set in, doubling its capacity with a second assembly line for mobile orders and prioritizing drive-through "Chipotlanes" in new locations. The niche leader for restaurant stocks saw its comps turn positive quarters before its rivals followed suit. You don't bet on Chipotle, though like MercadoLibre you'll need a broker that allows fractional shares, given its four-figure share price. Chipotle's not cheap on many levels, but like its premium-priced bowls and burritos, it's worth it.
