The market continues its volatile ride, which may leave many investors confused about how to play their positions. But it's really no different than a smooth, upward market if you have long-term goals in place. If you have money in the market, the best thing to do is read something other than the news and wait it out. If you're looking to enter the market, you can find great stocks that are beaten down.
Even if you don't have a lot of funds to invest, there are stocks on sale that fit any budget. Fiverr International (FVRR 0.25%), Revolve Group (RVLV 0.75%), and Doximity (DOCS -1.74%) are all top stocks that are trading for less than $100.
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1. Fiverr
Fiverr was on top if the world when the pandemic started and market prices soared after the initial collapse. For the full year 2020, fiverr stock increased 730%. However, the company's results couldn't keep up with the inflated price, and for the full year 2021 the stock decreased 42%.
For those of us who weren't able to buy shares before the spike, that gives us another opportunity to buy in now. The long-term prospects here are very compelling; just don't expect another huge short-term spike. Consider buying shares because you see a great business with huge opportunities down the line.
Fiverr is a freelance work company with a unique service-as-a-product model. In contrast to the standard model where a buyer posts a job offer and sellers respond with proposals, in Fiverr, sellers create pre-packaged "gigs" with set parameters, and buyers browse gigs. Sales have been hot since the pandemic started and working from home became more prominent, but it's still posting excellent growth. Revenue increased 57% in 2021 and gross margin increased slightly. Net loss increased as the company poured money into expanding, and that's something to keep an eye on. But at this stage, it's not unusual or worrisome to post losses.
Management sees a strong opportunity as workers leave offices and start their own businesses, and as businesses rely less on in-house workers and more on a remote, decentralized staff. Out of what it says is a $115 billion addressable market, only a tiny fraction of freelance business has moved online.
Fiverr stock isn't cheap, trading at a price-to-sales ratio of almost eight times trailing-12-month sales even at the reduced price. But there's so much to expect from Fiverr, and you can grab shares for less than $100 each.
2. Revolve Group
Revolve Group is an up-and-coming fashion powerhouse that uses artificial intelligence and machine learning to stay on-trend and fuel high sales. Wall street expects its stock to grow as much as 100%, and it's trading fairly cheaply for a high-growth company with so much potential, at only 39 times trailing-12-month earnings.
Fourth-quarter sales increased 70% year over year, and net income increased 55%. 2021 revenue was less than $900 million, so this small company, which operates against the big fashion retailers like Macy's and Nordstrom, has a ton of market opportunity. Eighty-three percent of fourth-quarter sales were in the U.S., and while the market there remains huge, it has a clear opportunity for international expansion, which it is actively working to engage.
Active customers increased 162,000 in the fourth quarter to 1.8 million, and orders placed increased 72% year over year. Average order value also increased, 14%. This is an engaged and growing customer base that's tuned into the company's messaging, which specifically targets this cohort. It works with influencers who its target market follows and offers a vision that connects with its shoppers.
Revolve stock is down 8% this year, but it looks like a strong buy with lots in store for patient investors.
3. Doximity
Doximity only went public last summer, and investors caught onto this powerhouse early. Its stock price soared, and has since come down. It's demonstrating strong growth and shares are now available for a much more reasonable price.
The company is a social network for medical professionals such as doctors, nurses, and physician assistants. Eighty percent of U.S. doctors are on the network, which is useful for collaborating about patient care as well as staying up to date about medical news and looking for jobs. Recruiting is a central part of the company's model, and hospitals pay for enterprise subscriptions to market their available jobs and find suitable candidates. One catalyst for this business is the "Great Resignation," as many professionals are reevaluating their jobs and looking for something new. Most of its revenue, though, comes from pharmaceutical companies that advertise to the huge base of medical professionals.
In the third quarter (ended Dec. 31, 2021) revenue increased 67% over last year and net income increased more than 200%. It expects fourth-quarter revenue to increase 34% over last year, and management is projecting sales as far out as fiscal 2023, when it expects it to increase 33% year over year.
Even at this price, Doximity stock isn't cheap, trading at 73 times trailing-12-month earnings. But it's profitable and growing, and investors can pick up two shares for less than $100.
