There's no getting around the fact that the market's drop over the past year has scared off some investors. But huge sell-offs in nearly every sector mean that there are some great stocks out there that investors can snatch up at a discount.
If you've got $2,000 to put into the market right now, consider starting a position (or adding to an existing one) in Roku (ROKU +0.47%), Snowflake (SNOW +0.13%), Tesla (TSLA 3.30%), and Apple (AAPL 3.73%). Here's why these four stocks look like buys now.
Image source: Getty Images.
1. Roku
Nearly every major media company has a streaming service, and some have more than one -- and as cable subscribers continue their decline, it's becoming increasingly clear that video streaming is the future.
Roku figured this out years ago. The company's platform allows users to watch nearly any streaming service and makes money through advertising and when users sign up for new services on its platform.
NASDAQ: ROKU
Key Data Points
And some of the company's latest quarterly figures show how it continues to benefit from the transition from traditional TV providers to streaming services:
- Roku's active accounts increased 14% in the first quarter to 61.3 million.
- Users are very tuned in, with nearly 21 billion hours streamed in the first quarter -- up 14% year over year.
- Roku's average revenue per user (ARPU) spiked 34% in the quarter to $42.91.
- Total sales jumped by 28% in the first quarter to $734 million.
All of that growth has helped Roku remain the No. 1 TV streaming platform in the U.S., Canada, and Mexico. With that position and the company's ability to add new users and earn more money from them, Roku looks like a great place to put some money right now -- and leave it for the long-term.
2. Snowflake
Snowflake's cloud-based data storage and analytics platform was a huge hit among investors when the company went public back in September 2020. But when the market turned against tech stocks, Snowflake's share price got hammered and now trades well below its IPO price.
NYSE: SNOW
Key Data Points
The good news is that Snowflake is actually growing quickly. Take a look at the company's latest figures from the first quarter:
- Snowflake has 206 customers with trailing 12-month product revenue spending of $1 million or more, nearly double the amount from the year-ago quarter.
- Total customers grew 40% year over year to 6,322.
- Its net revenue retention rate (how much more a customer spends with the company than in the previous year) is 174%.
- The company's product sales are up 84% from the year-ago quarter to $394.4 million.
Investors may be wary of high-growth stocks right now, but staying away from all of them could end up being a mistake.
The market is worried about the economy, but the massive sell-off in the tech sector has left Snowflake looking like a well-priced stock right now, especially when you consider its revenue growth, increasing customer count, and impressive net revenue retention rate.
3. Tesla
Consumers are becoming increasingly interested in electric vehicles, and the automotive industry as a whole is pivoting its resources and talent toward developing them.
NASDAQ: TSLA
Key Data Points
But while some automakers are trying to move quickly to tap into EV demand, Tesla has been setting the pace for years. And even during this time of rising costs and high inflation, Tesla is still putting up impressive figures. Here's what the company's latest quarter looked like:
- Vehicle production soared 69% year over year to 305,407 vehicles.
- Tesla's vehicle deliveries were just as impressive, increasing 68% to 310,048.
- Automotive revenue in the quarter increased by 87% to $16.9 billion.
- The company's operating margin reached 19.2%, up from just 5.7% in the year-ago quarter.
Sure, there could be some difficulties ahead as inflation remains high and supply chain issues continue to plague the auto industry. But it's clear Tesla's vehicles are still in demand, and with the company's first-mover advantage as an all-electric vehicle company, Tesla still has the ability to continue growing even as EV competition heats up.
4. Apple
Apple may not be the fast-growing company it once was, but investors who are looking for a steady company that still delivers impressive growth certainly should consider putting some money into this tech stock right now.
NASDAQ: AAPL
Key Data Points
Apple's share price has taken a hit in 2022, but the drop looks more like a great buying opportunity than a setback for existing shareholders. The recent slide means that Apple now trades at just 21 times its trailing earnings -- not bad at all for a tech powerhouse that still has plenty of life left in it.
Here are a few highlights from the company's latest quarter:
- Total sales grew 9% year over year to $97.3 billion.
- Services revenue increased 17% to $19.8 billion.
- The company's wearables, home, and accessories revenue segment increased by 12% to $8.8 billion.
These figures show Apple can still put up impressive growth and there's likely more ahead that investors should keep an eye on. The company reportedly showed a new augmented reality (AR) and virtual reality (VR) headset to its board of directors in mid-May, indicating that Apple could soon enter an entirely new market.
For investors who are looking for a massively successful tech company that still has plenty of innovation left in it -- and that's trading at a discount right now -- Apple looks like a smart bet.
